The Moscow Exchange’s initiative to develop a code of ethics for the stock market will force financial companies to be more attentive to the level of an investor’s qualifications and select products for him that match his interest and experience. Anna Bodrova, senior analyst at IAC Alpari, reported this to Izvestia on Friday, April 2.
According to her, now the Russian stock market is still in the development stage, and therefore the ethical side of trading and sales of services is only developing.
“Naturally, a set of rules and regulations is needed,” Bodrova said.
She said that currently the moral side of selling complex products and unsuitable services to newcomers “is on the conscience of the broker and his team.”
The expert noted that the Central Bank, indeed, “pays great attention to the protection of unqualified investors, this code is formed based on their interests, first of all”.
The analyst emphasized that the code could work “especially well” if punishment was introduced for unfair work with a client.
Earlier on the same day, RBC reported that the Moscow Exchange had developed a code of conduct on the stock market. It lays down rules for countering unfair practices, disclosing information to clients, and protecting confidential information. The document was created together with the Central Bank, self-regulatory organizations and market participants, for example, Sberbank, Alfa-Bank, Aton, Alfa-Capital Management Company. The Supervisory Board of the Moscow Exchange may approve it this month.
The Code of Ethics has been developed since August last year, but it will be adopted against the background of the regulator’s increased attention to unfair practices, the agency said.
The head of the Bank of Russia Elvira Nabiullina said at a meeting of the Council for the Development of the Financial Market under the Federation Council in December 2020 that the Central Bank plans to directly limit the sale of complex financial products to inexperienced investors. The regulator has prepared a corresponding bill. The State Duma adopted it in the first reading in March 2021.