June 18th, 2018, The Financial Commission, a leading independent member-driven external dispute resolution (EDR) organization for international online brokerages that participate in global foreign exchange (forex), derivatives, and CFD markets, today announced the participation of it’s Chairman, Peter Tatarnikov in a working session of the Expert Council of the Association of Forex Dealers (AFD), which took place in Moscow on Thursday, June 14th, 2018 at the State Duma Committee on Financial Markets. The AFD is the sole SRO accredited by the Bank of Russia, unifying all licensed Forex dealers in Russia.
Following Mr. Tatarnikov’s appointment to the AFD’s Expert Council in November of last year, the Financial Commission has assisted the AFD in a variety of areas, including the regulation of CFDs, improvements to the current Forex legislation and KYC requirements for broker clients.
Chairman of the State Duma Committee on Financial Markets, Anatoly Aksakov opened the session with an observation that Russian citizens continue to open trading accounts with foreign brokers: “we would like traders and brokers to return to our jurisdiction, so that we can expand our economy and so that customers can be protected by our legislation”.
During the meeting in Moscow the AFD’s Council discussed proposed amendments to the law “On Countering The Legalisation Of Earnings Received In An Illegal Way (Money Laundering)” as it relates to Forex brokers being able to conduct simplified online identity verification of clients. Representatives of brokers-dealers present at the meeting unanimously supported the simplified online verification procedures. One of the main supporting reasons is the high interest from potential customers in regions where broker-dealers do not have a representative office.
The Council also discussed ways in which the AFD is combating dishonest business practices within the industry. Expert Council members agreed to further discuss the question of creating warning lists, comprised of companies that violate the law “On the Securities Market” in an effort to warn the general public and investors. Chairman of the AFD, Evgeny Masharov, proposed to publish such lists on Finversia.ru, which recently became a general information partner of AFD.
Peter Tatarnikov commented that simplified client verification procedures will help drive interest from foreign clients: “It is important to understand that client protections in Russia are stronger than in many other jurisdictions around the world (for example, the use of negative balance protection for forex traders). So I don’t rule out the possibility that international clients will want to trade with Russian forex-dealers”.
Association of Forex dealers (AFD) is a non-profit SRO in the field of financial markets, uniting Russian-based Forex dealers, and was established in accordance with the legal requirements of Russian Federation law.
The main objectives of the Association are:
- The development of the financial market of the Russian Federation, facilitating the creation of conditions for effective functioning of the financial system of the Russian Federation.
- The implementation of economic initiatives of professional OTC market participants – Forex-dealers;
- Protection and representation of the Forex dealers’ interests in Russian Federation
The main objectives of the Expert Council are:
- monitoring and analysis of the over-the-counter financial market development;
- examination of the current Russian Federation legislation and its improvement with the view to the over-the-counter market participants interests;
- discussion and preparation of legal drafts and proposals on the improvement of the financial system legislation.
About Financial Commission
Financial Commission is an independent external dispute resolution (EDR) organization for market participants who are unable to resolve disputes directly with their financial services providers that are members of the Financial Commission. Financial Commission initially set out to provide a new approach for traders and brokers alike to resolve any issues that arise in the course of trading electronic markets such Foreign Exchange, and then expanded into CFDs and related derivatives, in addition to certifying technology platforms used for trading.
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