Russian regulators take aim at Forex education centers

Education centers that have the permission to provide training in general but do not have the right to offer Forex services, including FX education services, have become the latest target of Russian regulators.

Andrey Kashevarov, deputy head of the Federal Antimonopoly Service (FAS), has noted the emergence of organizations that offer Forex training services, gather substantial sums from people and often act as “umbrellas” for foreign FX companies. Mr Kashevarov was quoted by TASS as saying that the regulator will go after such centers, as their offering may be considered as Forex advertising and, hence, requires a Forex dealer license.

He said the Central Bank of Russia and FAS may turn to the Ministry of Education and Science to take away the permissions of education centers that illegally offer Forex training services.

As FinanceFeeds has reported, FAS is now considering a prohibition of any form of targeting and luring Forex clients in Russia unless the entity doing this has a Forex dealer license. Forex education centers will also be covered by the new rules. The proposals will be included in a document, which should be ready by the third quarter of 2017 and which will be addressed to the Bank of Russia and/or the Russian government.

The goal of the new rules is to spur growth and development of the market for the services of Forex dealers, as well as to create conditions for competition in the industry.

In the meantime, the volume of rules for licensed Forex dealers (the official designation of Russian Forex brokers) continues to grow. On Monday, the Central Bank of Russia published a Directive, providing instructions on a number of reports that Forex dealers have to submit on a regular basis and the deadlines for submitting these reports.

Thus far, only eight companies have managed to secure Forex dealer licenses in Russia.