16 Jun 2022 14:15

Russian Central Bank wants to raise level of investor protection systemically in order to restore confidence in financial market

ST. PETERSBURG. June 16 (Interfax) - The level of investor protection in the Russian financial market must improve qualitatively in order to regain confidence in it after risks have materialized, Central Bank of Russia (CBR) Central Bank Governor Elvira Nabiullina said at the St. Petersburg International Economic Forum (SPIEF) 2022.

"Setting the task of restoring citizens' trust in investing in financial assets is very important," Nabiullina told reporters after a SPIEF 2022 session, when she outlined the "challenge" for the regulator. "However, this is a matter of not only taxes, but also of other elements," Nabiullina said.

"Insurance on a market basis through compensation funds is something that has not been developed, by the way. We are now seeing that if such a system were created, it could soften the blow, and maybe we would just be able to expedite the creation of such systems for market investment insurance," Nabiullina said.

However, it is not only about selective steps in this direction. "Remember that we have tried in previous years very actively to protect the interests of unqualified investors, understanding what risks there were? Unfortunately, many of them have materialized. We will just need to raise the level of investor protection systemically and qualitatively on the financial market if we want there to be trust in the financial market and that people brought money there. Taxation is one of the elements, and we will have to think about others," Nabiullina concluded.