The formation of the investment protection fund for retail investors will be postponed, Alexei Timofeev, head of the National Association of Stock Market Participants (NAUFOR), told Izvestia.
It is unlikely that professional market participants now have free money to finance the activities of such a fund, the head of the association noted. Moreover, in the history of the stock exchange of the Russian Federation there are only a couple of real cases when this mechanism could be needed. This indicates the effectiveness of the risk management system. Alexey Timofeev is sure that it is worth returning to the issue of forming such a system during the period of growth of the stock market.
In 2022, the draft law on the investment guarantee system was revived. The reason to return to the discussion of the mechanism of insurance of investments in the stock market was the crisis, Alexei Timofeev shared in an interview with Izvestia in May of this year. And the draft law was developed back in 2017 and provided for investment insurance on individual investment accounts (IIA) based on the DIA.
According to the revised version of the draft law, the insured event included the annulment of the professional participant’s license, the revocation of the Central Bank’s license from the insured in the person of the bank, and the introduction by the latter of a moratorium on satisfying creditors’ claims. It was assumed that the source of funding for the private investment protection fund would be the contributions of brokers, managers and depositaries. The maximum amount of payments was planned in the amount of 1.4 million rubles, as well as for deposits in banks.
Market participants proposed to postpone consideration of their initiative to form such a fund for several years, and the Central Bank shares this position, the regulator stressed to Izvestia. Experts fear that the idea will be shelved for an extremely indefinite time until it is forgotten.
Read more in the exclusive Izvestia article:
“Never Ever: Investment Protection Fund Establishment Delayed”