Professional market participants’ disclosures: new ordinance of Bank of Russia
The Bank of Russia has established uniform rules for disclosures applicable to all professional securities market participants, including investment advisers. The rules will make their operations more transparent and better protect their clients’ rights.
The ordinance expands the list of information to be disclosed on websites. In addition to contacts and information about the management and capital, professional market participants must also publish data on the members of their board of directors or executive board, specify their accounts in social networks, and notify clients of how they can sent possible complaints. Besides, professional market participants are obliged to publish documents stipulating their service procedures and, where contract terms are amended, disclose the list of modifications.
The rules also set the requirements for the content of disclosures. It is prohibited to provide incorrect, inaccurate or misleading information and to promise or guarantee returns on investment in financial instruments.
The new rules are to become effective on 1 April 2024.
Currently, professional securities market participants are allowed not to disclose information sensitive to sanction risks. The Bank of Russia plans to extend this permit for 2024 as well.