Monday, May 29, 2023
20.9 C
New Jersey

Investment Boards Urged to Take on Greater Responsibility by Central Bank

Must read

Editorial Teamhttps://www.xtrempoint.com
Where News Meets Insights, We Keep you Ahead!
St. Petersburg, May 15 – The Central Bank of the Russian Federation calls for strengthening responsibility for advice on illegal investment, including bloggers and Telegram channels, and banning the attraction of money from individuals to companies not supervised by the regulator will help protect the money of Russians, the head of the News Agency’s rights protection service says Consumer and ensuring the availability of financial services, member of the Board of Directors of the Central Bank Mikhail Mamuta on the sidelines of the St. Petersburg International Legal Forum.
“Not to say that on a large scale, but there are complaints. Unfortunately, very often people who call themselves investment advisors are not, that is, they are not members of the SRO of the financial market and are not included in the register of investment advisors maintained by the Bank of Russia. People They follow some of the advice of the Telegram channels, most often anonymous, generally unknown people, or advice, as it were, from a teacher. As a result, they are facing financial losses and fraud, Mamuta added, and eventually start filing a complaint with the Ministry of Home Affairs and the Public Prosecutor’s Office.
The national flag of Russia on the building of the Central Bank of the Russian Federation - 1920, 04/05/2023

It identified the number of complaints about fraudsters impersonating central bank employees

He noted that “it is necessary to increase the responsibility for illegal investment advice, because its consequences are close to the abuse of the right. There are many real problems here, they require systematic solutions: we are now discussing this matter with colleagues from other departments.”
According to him, mostly in complaints people say: “I, following the advice of such and such a blogger or such and such a telegram channel, bought something and eventually lost everything, my money went to no one knows where.” Very often, these so-called advisors pressure to invest money in unregulated companies – and this is a big problem, called “pseudo-trust management”, “pseudo-brokerage”, as Mamuta believes.
“What solutions can there be here? We believe that the organization of the institution of investment advisors needs to be improved: what is an investment recommendation, who can give and what are the consequences. This institution, in my opinion, is not yet fully functioning. There have been attempts, but This is only the first step. In many countries, the investment advisor is the one on whose shoulder the person rests for the duration of the recommendation, not just when it is issued.” .
“We also support a bill that prevents the collection of funds from citizens in companies that are not subject to the supervision of the central bank, because there is no other way to win. In addition to continuing educational work in the field of investment literacy,” Mamuta added.
the News Agency is a media partner of the XI International Legal Forum in St. Petersburg.
Building of the Central Bank of Russia - 1920, 04/28/2023

The central bank kept the main interest rate at 7.5 percent annually

More articles

Latest article