Only financial institutions to be permitted to attract investments from households - Russian Central Bank

MOSCOW. April 6 (Interfax) - The Central Bank of Russia (CBR) wants to limit the circle of organizations that are permitted to attract investments from citizens to only financial institutions in order to fight against financial pyramids, Central Bank Deputy Governor German Zubarev said.

According to the law, any legal entity is currently permitted to attract investments from an unlimited number of individuals, and fraudsters take advantage of this right actively, Zubarev noted.

"In order to counter financial pyramid schemes, only financial institutions that the Bank of Russia supervises will have the right publicly to raise funds from citizens as investments," Zubarev said during a meeting of the State Duma working group that is considering the CBR's report for 2022.

"I think that it is fair and just that trusted and professional participants manage people's money," he added.

Zubarev said that the CBR has participated in developing a corresponding bill that amends the federal law "On protecting the rights and legal interests of investors in the securities market".

The bill is currently undergoing interdepartmental agreement, and it could be submitted to the State Duma shortly.