Evgeny Masharov, head of SRO AFD, told in an exclusive interview to Magnates about joint plans of the regulator and forex dealers to “clean” the Forex market.
As late as last week, Russian accredited forex dealers, the so-called “representatives of the regulated market,” met at a round table with representatives of many public organizations, and most importantly, of regulated financial bodies, in order to discuss the pressing problems of forming a “legal” market Forex in Russia.
On the atmosphere of the meeting, on the plans of industry participants and regulators, about the urgent and urgent, the editorial staff of Forex Magnates Russia talked with the Head of the Association of Forex Dealers (SRO AFD), Evgeny Ivanovich Masharov, in an exclusive interview on the results of the roundtable “Protection of consumers’ rights – users services in the Forex market “, which took place on August 24, 2017 in the building of the library. A.P. Bogolyubov.
– Eugene, last Thursday the Association of Forex-dealers held a round table devoted to the problems of protecting the rights of consumers-users of services in the Forex market. In fact, this is the first event after the entry into force of the law on the regulation of the Forex market, on the site of which the forex dealers, representatives of the Bank of Russia and profile organizations gathered. Does this mean that, finally, the market comes to life, embarks on the path of access to information and receives the long-awaited support from the professional community?
Indeed, on the one hand, over a long period – this is the first public event, not counting the numerous working meetings and meetings. Representatives of the Central Bank of the Russian Federation, members of the staff of the State Duma Financial Market Committee, FAS Russia, the Chamber of Commerce, Finpotrebsoyuz, forex dealers, as well as representatives of other specialized organizations gathered at the round table. On the other hand, if you look at the timing of events, not much time has passed.
October 2015 – the entry into force of the law on the regulation of the Forex market, December 2015 – the first license of the forex dealer was issued, in March 2016 – the Association of Forex Dealers was created, and already in October of last year, the AFD was included in the register of self-regulating organizations in the financial market. Thus, we can say that the launch of the mechanism for regulating the Forex market in Russia is proceeding at a rapid pace
As for the aspect that representatives of the regulator and professional forex community met at the same table, this is certainly a fact of recognizing the Forex market as an equal participant in the Russian financial market. Already accumulated experience in regulatory practice, identified a number of problems, some have already been resolved, some in the process of resolving them, and many have yet to be identified and resolved. Everything develops as it should have been in the formation of the market, in particular that has been outlawed for too long.
– The general theme of the round table is the protection of the rights of consumers – users of Forex services from different points of view on this issue. Why did you choose this problem for the first event?
The topic was chosen not by chance. If we turn directly to the history of the law on the Forex market, then one of the priorities of its adoption was precisely the protection of consumer rights. For more than 20 years, the Forex market clients have been completely unprotected, being clients of offshore organizations in Russia, companies without licenses even of foreign jurisdictions, and sometimes clients of financial pyramids. But we must admit that there are enough unscrupulous market participants now.
To date, the law is able to protect customers of companies that have licenses to carry out the activities of a forex dealer in the territory of the Russian Federation. Such customers have the right to handle their claims and directly to forex dealers, and SRO AFD, and the Bank of Russia. But the work to improve the regulatory framework for protecting the rights of clients must continue.
For example, the absence of the possibility of hedging the risks of a forex dealer, without which unfair practices can be generated or the introduction of simplified customer identification, the absence of which significantly complicates the conclusion of an agreement between a client and a forex dealer. It is also important to maintain a balance in the interaction of forex dealers and customers, so that both are beneficial cooperation.
– The basic standard is the main document for the protection of consumers’ rights. At what stage of the agreement is the document and what are the stumbling blocks and discussions?
The basic standard for the protection of the rights and interests of individuals and legal entities – the recipients of financial services provided by SRO members in the financial market, uniting forex dealers – is the second standard after the standard for the performance of operations in the financial market. The concept of the document takes the basis of the Instruction of the Bank of Russia No. 4270 “On the list of basic standards mandatory for the development of SRO in the financial market, but it has been significantly adapted and deepened for the possibility of its practical application. In this regard, it took time and costs, and the work of experts to develop it. At present the document has already been submitted to the Bank of Russia for further approval and approval.
I can not call some stumbling blocks of the document stumbling blocks, but rather attempts to maintain the same balance that I mentioned earlier, so that comfortable conditions for the work of both the client and the forex dealer are created.
I will give two examples from the provisions of the future standard, which are now in agreement. The first is the initiative of the SRO regarding the procedure for simplifying the conclusion of an agreement between a client and a forex dealer through hyperlinks or actions on the site. Forex dealers are high-tech companies, however, it is not yet possible to completely abandon the procedure for the on-site presence of the future client in the company’s office, as there is no procedure for simplified identification, but some possibilities are primarily registered for the consumer first.
The second interesting example of control purchases. In fact, this is a “secret buyer” procedure, which is aimed at tracking and revealing the bona fide activity of forex dealers.
– So you not only pursue dishonest participants, but also actively work on “your own”?
Of course. Our SRO is called the Association of Forex Dealers, one of our tasks is to help create conditions for the effective functioning of the financial system of the Russian Federation and ensure its stability, and we will be able to ensure stability only when our members are compulsory in good faith.We receive information not only from control purchases. We work on many fronts. We receive signals, we check. Signals can be comments, including on your resource. All is carefully checked.
-“Nevertheless, we will also talk about dishonest people.” The dominance of “illegal immigrants” and the possibility of their unhindered work is subject to special criticism, especially of your Association. During the round table, you mentioned that there were fewer advertisements, a number of measures were taken to interact with advertising providers, including, but it still exists. Yandex, on the one hand, blocks messages using the word “forex”, including my site and requires a license, but at the same time we see advertisements of companies, forex companies that do not have a license. What is the reason for such illegibility or vice versa?
Such a problem does exist, and it was discussed at the round table. I can say directly about Yandex that there will be an additional explanatory work between our lawyers and Yandex lawyers. Specialists of the advertising sphere find it difficult to understand the functioning of the new market, methods of attracting, its instruments. Perhaps it will be correct that the result is some kind of instruction or standard-recommendation that will help other advertisers better navigate the law on advertising, in the field of Forex.
At the same time, according to the results of reports submitted to the Bank of Russia on the activities of forex dealers for the first quarter of 2017, the number of customers of forex dealers is 600 people. At that time clients of unscrupulous companies are still at an incommensurably different level, about 300,000. Much depends on us, but not all.
For example, during discussions within the framework of the round table, the opinion was repeatedly expressed, and it was supported that the existence to this day of unscrupulous market participants is also the responsibility of the citizens themselves who apply for services in such companies. Therefore, the responsibility lies not only on market participants, SRO as a defender, but also on the citizens themselves.
– What do you do with the training centers? There are already specific plans, what will happen to them?
There is. As you know, in May 2017, a road map was signed to develop competition in the financial services market between the Bank of Russia and the Federal Antimonopoly Service.
In the third quarter of 2017, it is planned to work actively on the part of the work of training centers, including determining the status of training centers that function both for forex dealers and for companies that do not have licenses for forex dealers. A set of measures is expected, with a preliminary discussion involving the Bank of Russia, the FAS Russia, the Ministry of Education and Science and the AFD.
We are not against training, we are against the fact that instead of learning, there is attraction. By itself, training should prepare the consumer to work with a forex dealer, and not be a means to take money and so that money does not go offshore.Agree, that in the majority the negative attitude to the market remains. Even from the side of the regulator in some speeches there are notes of mistrust and denial of Forex, as a tool of the financial market.
– Did the round table create such a feeling? No, quite the contrary. The attitude to Forex is changing and it can be seen, I would even clarified that the notion of differentiation between the regulated market and the unregulated market appeared. We do not work in vain.
I can note that the Bank of Russia has a very tough stance on cleaning the market from illegal practices. Interaction with law enforcement agencies, blocking of websites, restriction of the activity of training centers that attract clients. These and other activities of the AFD support, since we are sure that it is actions within the law and preventing loss of funds by citizens that can change the attitude to Forex of both citizens and the professional community.
– Well, at last, tell us about the plans of the AFD? Can I still expect events? On what topics?
Oh sure. We plan to hold a number of events before the end of the year. After the round table, prospects for interaction with the Bank of Russia, with specialized organizations on many issues that had not been discussed earlier, opened up for us. Including on issues of financial literacy. AFD plans to take the most active participation in programs to increase the financial literacy of the population, in addition to our own experience in the publication of methodological aids.
There are prospects for active interaction with regulators at the international level, to study and implement their experience. One of the tasks of the AFD is to create a regulation of Forex in Russia competitive. But this is already a consequence of the fact that the market will be completely cleared of dishonest practices, forex dealers will conscientiously provide their services, and the number of customers will grow.
With the head of the FOREX-SRO AFD, Evgeni Masharov, Vadim Svidersky, editor of the profile media resource ForexMagnates.com
From : ru.forexmagnates.com