FAS PROPOSES TO GRANT FX-DEALERS A POSSIBILITY TO TRAIN CUSTOMERS INDEPENDENTLY

The antimonopoly authority proposes to eliminate exclusivity of operations of FZ-dealers, which will enable these organizations to combine it with other activity including education

On 31 January 2018, Deputy Head of FAS Department for Control over Financial Markets, Alexander Razin outlined FAS efforts for protection of competition on the market of FX-dealers services. He took part in the Round Table of the Committee of the State Duma on the Financial Market “On the measures for establishing competitiveness of FX-market jurisdiction in the Russian Federation”.

“The paradox of the situation on the FX-market is that at the moment the most qualified participants – licensed FX-dealers cannot train clients on their own because the norms of the Law “On the securities market” prevent them from combining the operations of a FX-dealer with any other activity, including education”, said Alexander Razin.

He explained that one of the issues in the field is attracting clients by the so-called training centres to further offer FX-dealers services by the companies that do not have an appropriate license of the Central Bank of Russia and often are registered in off-shore jurisdictions.

“FAS thinks that the exclusivity of FX-dealers’ operations should be abolished, which will reduce the costs of the market participants for attracting third-party training organizations. What is the most important, it will also play a positive role in protecting the rights of individuals that invest in the market since upon adopting the amendments we expect an additional cross-flow of clients from unfair market players to licensed FX-companies. There are also reasons to believe that the quality of training how to work on the FX market will improve”, summed up the representative of the Antimonopoly Service.

The discussion participants supported the FAS position with regard to granting licensed FX market participants to combine their activities with training.

FAS has already drafted proposals on amendments to the Law “On the securities market”, which will enable FX-dealers to independently train clients. In the near future the proposals will be forwarded to the Bank of Russia for consideration.

Representatives of the Committee of the State Duma on the Financial Market, the Bank of Russia, FX-dealers and market players attended the events.

Reference: 

In 2015 FZ-dealers were classified by law as professional participants of the securities markets and are regulated by the Bank of Russia, Accordingly, FX- dealers are financial organizations within the meaning of the Federal Law “On Protection of Competition”.