RUS CB Securities Income Account

On Apr. 5, RUS CB clarified on investors' right to choose account.

  • RUS CB recommended that brokers and depositories should give clients the right to choose the account to which they want to receive their income on securities.
  • Investors have right under law to choose to transfer to brokerage or bank account.
  • Client Account
  • Usually, depositories include a clause stating that income from securities is credited to a special brokerage account when investing funds through a brokerage or IIA.
  • Thus, the client cannot receive coupons and dividends directly to a bank account, except by withdrawing funds from the brokerage account by paying a commission.
  • Providing clients with the ability to choose their account will protect their rights and make individual investment accounts (IIAs) more convenient for long-term investment.
  • RUS CB also clarified that the law does not prohibit brokers and managers from returning money to the client in foreign currency when closing the investment account.

Regulators RUS CB
Entity Types B/D; Bank
Reference PR, Lt IN-06-52/17, 4/5/2021
Functions Client Money; Compliance; Financial; Operations
Countries Russia
Products Banking; Securities
Regions EMEA
Rule Type Guidance
Rule Date 4/5/2021
Effective Date 4/5/2021
Rule Id 102093
Linked to
Reg. Last Update 4/5/2021
Report Section International

Last substantive update on 04/06/2021