Bank of Russia clarifies rules for selling foreign securities to non-qualified investors
Legal entities will be able to buy securities of issuers from unfriendly states without any restrictions, regardless of whether they have the status of a qualified investor or not. This is the decision made by the Bank of Russia.
Previously, the regulator set limits on transactions with such assets for non-qualified investors — individuals. Beginning from 1 October 2022, the share of foreign securities in an investor’s portfolio may not exceed 15%. From 1 November 2022, this limit will be 10% and from 1 December 2022 — 5%. Since 1 January 2023, brokers will not be allowed to fulfil non-qualified investors’ orders if they increase the positions on securities issued by companies from unfriendly states. These restrictions are not applicable to the foreign issuers whose principal activities are in Russia.
Additionally, the proportion of purchased foreign assets in the total value of an investor’s portfolio will be calculated based on data as of the end of the previous trading day. By ceasing to make calculations online, brokers will be able to fine-tune their operational process more quickly.