Trust, but study: brokers will update the rules of working with clients
Brokers will be required to update the rules for working with clients. This basic standard was developed by the Bank of Russia. The new rules are designed to protect the rights and interests of financial service recipients. The requirements of the Central Bank will increase market transparency to a certain extent, experts confirm. However, their effectiveness will also depend on the financial literacy of the clients themselves. What changes the updated basic standard is in the Izvestia article.
Priority to consumers
Brokers will have to work with clients in a new way. The updated basic standard for the protection of the rights and interests of financial service recipients, developed by the Bank of Russia, will enter into force on November 7.
According to it, brokers will be required to warn their clients about the potential risks of planned operations. It is necessary to do this in an accessible language that is understandable to unqualified investors.
However, brokers will not be able to offer additional financial services without providing full information about them.
Another innovation envisaged by the Central Bank is related to the verification of brokers' qualifications. The regulator defines the requirements for the professionalism of employees.
It also provides for an assessment of the level of investor training. Starting in November, mandatory testing for unqualified investors will be introduced.
With this in mind, complaints from citizens will be considered. It is also expected that the innovations will help improve the timing and quality of the response to appeals and claims. All this together should make the investment market more transparent, understandable and safe for individuals.
The National Association of Stock Market Participants explained that in accordance with the new changes, brokers will have to provide a person with a number of information. These include not only a risk declaration, but also a notification that the money in the brokerage account is not insured, unlike bank deposits.
The risk declaration has a clear template in which the phrase is written: "I understand that a lack of knowledge and experience can lead to a complete loss of invested funds, and in some cases lead to debt." At the same time, both the declaration and the information about the contract can be supplemented, if necessary, provided that the meaning of the template texts is preserved taking into account the changes.
Useful innovations
Starting from November 7, the investment industry will take a serious step forward, Denis Astafyev, entrepreneur, fund manager and founder of the SharesPro fintech platform, is convinced. There will be a transition from fragmentary recommendations to a full-fledged "code of conduct".
The updated basic standard of the Central Bank is not just a bureaucratic requirement, but a step towards the formation of a mature financial culture, where transparency and investor protection play a key role, says investment adviser, founder of the online University of Finance Yulia Kuznetsova.
— Now it is not enough for a broker to simply show the product — he must explain in advance and in an accessible way exactly what risks the client is taking: from marginal and "uncovered" positions to auto—research and complex financial products, - says Denis Astafyev, adding that it will also be necessary to disclose commissions and possible conflicts of interest.
According to the requirements of the updated basic standard, brokers are required to inform clients in advance about the risks of operations and cannot impose additional services without their explicit consent and full disclosure of the terms, notes Yaroslav Kabakov, Director of Strategy at Finam IC, lecturer at the Higher School of Business of the National Research University Higher School of Economics.
"The standard also provides for a personalized approach when recommending financial products, tariff transparency, and a simplified procedure for rejecting unnecessary services within 14 days," the expert adds.
What is new in the standard is the increased control over conflicts of interest, Yulia Kuznetsova points out. Brokers often promote their own investment funds and products without disclosing all the details to the client. The rules developed by the Central Bank limit such practices — the broker is obliged to honestly report that he is promoting an affiliated instrument or receives additional remuneration.
All information about licenses, taxes, customer rights, and dispute resolution methods should be available 24/7 via the website or app, Kuznetsova added.
Personal responsibility
The Central Bank's standard is being introduced on time, Denis Astafyev believes. There are not many complaints about Forex (the international interbank foreign exchange market) and securities today — in 2024 there were 6.4 thousand of them. However, more than half of them are addressed to brokers.
— And in 2025, the general flow of claims against financial institutions is growing. The regulator is increasingly noticing opaque language, hush-up of commissions and the promise of profitability "as in a deposit." The new standard and the accompanying instructions of the Bank of Russia eliminate such patterns, requiring clarity, honesty and fair comparison of products, — the interlocutor of Izvestia is sure.
The full effect of the new measures, however, will depend on their practical implementation. The number of disputes and complaints, as Astafyev expects, may decrease significantly if companies really redesign their interfaces, scripts and instructions to meet the new rules.
The requirements of the Central Bank will increase market transparency and consumer protection to a certain extent, Yaroslav Kabakov agrees. However, their effectiveness will depend on the financial literacy of the clients themselves, and on the stability of the entire financial system.
"It is difficult to personalize services and products in uncertain economic conditions," the expert points out.
It is important to understand that the new standard does not protect capital, but investor awareness, emphasizes Yulia Kuznetsova. Warnings won't save you from losses if you don't know what you're investing in.
— Every investor should understand the essence of the instruments, the goals of their investments and the possible risks. The responsibility for the result lies not only with the broker, but also with the client himself," the Izvestia interlocutor is convinced.
In this context, financial literacy is becoming not an option, but a necessity, she points out. An investor needs to learn to understand the market and make decisions consciously, so as not to rely on the advice of interested intermediaries.
— Only in this case the protection will be truly effective for any investor. My opinion is to invest only in what you know. Therefore, we study first, and only then invest the money," summarizes Kuznetsova.
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