Having launched testing of unqualified investors on October 1 last year, the Central Bank developed a roadmap for 2022 to improve this procedure. This was stated in an interview with Izvestiya by the head of the Central Bank’s service for consumer protection and ensuring the availability of financial services, Mikhail Mamuta.
According to him, the correct answers to questions appeared on the Internet almost immediately. In addition, according to Mikhail Mamuta, the Financial Literacy Development Association checked the quality of testing in different regions.
“In general, everything was more or less decent. Although there were cases when a broker, including in his application, told a person how to take the test, to the point that he displayed the correct answers on the screen, explained what was wrong, and said how to pass, the head of the Central Bank service explained for the protection of consumer rights.
Therefore, the regulator decided to complicate the testing procedure and the questions themselves.
“We want to reduce the risks of manipulation by the seller and passing the test by mechanical enumeration of answers. The number of key questions at the first stage will increase from four to eight, and the number of possible answers will also increase. In this case, the investor will still answer four questions, but each time a new combination of them will fall out, and the rotation of the answer options will take place in the same random way. Due to this, the probability of passing the test by sorting through the options without understanding the essence of the answers will significantly decrease,” said Mikhail Mamuta.
Also among the changes prepared by the regulator for private investors is the fact that from October 1, 2022, a special reflection of the risk level of the instrument will appear in key information documents (KID) on securities from October 1, 2022 – from low to high. This is a kind of hint to the investor, which will help him decide whether to buy this instrument or not.
In addition, it is planned that the KID will reflect four scenarios of profitability that are possible for each investment product. This is what a person has the right to count on in a favorable, moderately favorable, unfavorable and stressful course of events, Mikhail Mamuta said in an interview with Izvestia.
“Now the seller almost never says that you can lose money if such and such events occur. And this simulation will let a person understand with what probability he will receive income or incur a loss, and will also help a more informed choice. This model is actively used in Europe. There is a special regulation, from which we, adapting this norm, transfer it to Russian legislation, ”he specified.
According to Mikhail Mamuta, in the first half of the year, the Central Bank will conduct a special behavioral examination in order to understand in what form investors perceive risk information better. It is possible that the best form would be a “traffic light”: green, yellow, red. If this hypothesis is confirmed, the KID on securities will also have a color scale of risks in addition to the numerical one, the representative of the Central Bank noted.
Read the details in an exclusive interview with Izvestia:
“A person will have the right to take a vacation on each loan”
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
