Russia’s antitrust watchdog plans to strip infringing forex education centers off their licenses

Russia’s antitrust watchdog plans to strip infringing forex education centers off their licenses

- in All News, Featured News, Regulation
Russia

Russia’s Antimonopoly Service (FAS) is planning to ask the Education Ministry to take away the licenses of the forex education centers that are attracting clients for brokers, without having permission to do so, reports the TASS wire agency.

“There are certain licensed forex educational centers that require payments from students and then direct them to companies abroad. Those payments are treated as investments in the forex market”, said FAS’ deputy head Andrey Kashevarov at a news conference.

In his words, those practices can be considered as advertising of forex brokers because those centers provide umbrella services. According to Kashevarov, stripping those educational centers off their licenses is one way to go about the problem.

According to the deputy governor of Russia’s c-bank Sergey Shvetsov, the bank, which is also in charge of regulating the activities of the forex brokers in Russia, is not planning to go after cross-border services, if the provider abides by the same rules as the local providers do.

In Shvetsov’s words, however, such cross-border activities are frowned upon by some regulators and the Bank of Russia is currently considering its approach towards them.

Currently there are eight properly licensed forex brokers in Russia – both local and international:  Alpari, Finam Forex, Forex ClubInstaForexTeletradeTrustForexVTB 24 and Promsvyazbank. There is also a number of forex educational centers, which have license from the Education Ministry as education providers.

According to media reports, by the end of this year, it is expected to roll out the second phase of forex market regulations, which will also address those educational centers.

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