Bank of Russia released instructions through its official publication yesterday regulating activities of FOREX brokers.
It included 11 standards (requirements) that the brokers must conform to.
These standards were summarized and implementation will be supervised by a self-regulatory organization or SRO. In Russia, membership in an SRO is obligatory for all foreign exchange brokers. FOREX companies that will not seek membership are compelled to quit the local FOREX market by January 1, 2016. However, the Bank of Russia did not officially grant this status to any organization in the country.
The business standards for accomplishment can be the initial step in this direction.
Pre-requisites include concerns on FOREX advertising. It says that FX advertisement of brokers must include the complete corporate name and license details. These ads must not cause any moral damages to third parties.
Likewise, the Bank of Russia requires all brokers to give back client funds two business days after FX firms receive requests from clients.
These FOREX self-regulatory organizations will be given permission to add sets of standards to this list provided these SROs do not disagree with provisions released by the country’s central bank.
Nonetheless, a lot of questions remain unanswered when it comes to Russian FOREX regulations. Majority of said stipulations in the country’s very new FOREX legislation only became operational last October 1st (2015). Bank of Russia officials also announced that they are still in the process of reviewing their existing policies.