The Bank of Russia, the “Megaregulator” that will be officially in charge of the Forex industry in the country from October 1, 2015, has shed some light on the deadlines that Forex brokers have to meet to obtain necessary licenses and provide their services in the country.
The provisions in the Forex law that come into force on October 1, 2015, require companies that want to offer FX services in Russia to obtain Forex dealer licenses from the central bank. At the same time, there is no clarity on how long such companies can operate in Russia after October 1, 2015, if they still do not have a license.
The Central Bank replied that Forex companies can offer their services to Russian clients even without a license until January 1, 2016. If they do not have a license after that, they should cease provision of such services.
In addition, the Federal Antimonopoly Service of Russia explained that advertising of Forex brokers without a license in Russia is also permissible until the end of 2015.
The bulk of Russia’s Forex law provisions come into force on October 1, 2015, including safeguard mechanisms for investors, tough capital requirements for Forex companies, as well as a 50x limit on maximum Forex leverage.
To view the official announcement by CRFIN on its consultation with the Bank of Russia and the Federal Antimonopoly Service, click here.