From April 1, 2023, changes were introduced by the Bank of Russia affecting how unskilled investors can buy securities from issuers located in friendly countries when those securities are held in an unfriendly depository. The new procedural rules were outlined in regulatory reports issued by the central bank and reported by TASS. These updates shape the responsibilities of brokers and the choices available to retail investors who are not yet experienced in financial markets.
Under the refreshed framework, brokers gain confirmation rights over a client order only after they have clearly informed the client about the potential future blocking of the securities in question. This approach makes it essential for a broker to communicate risk factors upfront. Before any trade is executed, the broker may send a message to the client using push notifications, or the agent may provide a single briefing on the trading rules and obtain the client’s explicit consent to proceed with the risk involved. The emphasis is on ensuring that unskilled investors understand the possible limitations and interruptions that could affect their holdings.
On March 21, 2023, the SPB Exchange, a newly organized foreign stock exchange, opened access for unskilled investors. This access applied to securities issued by entities classified as hostile by the country of residence and subject to depository arrangements. The development represented a shift toward broader participation in the foreign market, provided investors are aware of the associated depository and regulatory considerations.
Earlier, regulators had reported an extension to a six month ban on the sale of securities from unfriendly countries to unskilled investors. This extension was part of ongoing measures designed to manage risk exposure in the retail segment and to align trading permissions with evolving geopolitical and economic assessments. The dialogue around these restrictions reflects a cautious stance aimed at protecting novice traders while the market adjusts to new settlement and custody arrangements.
Prior to these developments, the Bank of Russia also announced restrictions related to foreign transfers of funds held by non-residents on broker and trustee accounts associated with non-friendly jurisdictions. The policy had initially been put in place for twelve months starting April 1, 2022, and received a six month extension starting April 1 of the following year. The ongoing adjustments illustrate how regulatory authorities balance market access with the need to monitor cross-border flows and the operational integrity of clearing and settlement systems.
For unskilled investors, these updates translate into a measured approach to participation in the foreign securities market. The regulatory stance emphasizes transparency, with brokers required to disclose potential blocking scenarios well in advance and to obtain clear consent from clients before any transaction proceeds. The SPB Exchange expansion demonstrates that foreign-listed instruments can reach a broader audience, provided investors are informed and the custody structure supports secure and compliant trading.
Market participants should note that the Bank of Russia continues to monitor custody arrangements, exchange access criteria, and the conditions under which securities traded across borders are held in depositories. The evolving framework seeks a balance between expanding investment opportunities for beginners and maintaining safeguards against abrupt policy changes that could impact liquidity or asset custody. Investors should maintain open lines of communication with their brokers and ensure they fully understand the specific depository and consent requirements tied to each trade. Authoritative updates from regulatory bodies and widely reported summaries will guide ongoing compliance and prudent participation in these foreign market activities.
Overall, the period around early 2023 through mid-2023 highlighted a deliberate shift toward greater inclusivity for unskilled investors in foreign securities, paired with robust risk disclosure and clear consent procedures. By coupling access with explicit warnings and documented approvals, regulators aim to protect less experienced traders while enabling a more accessible pathway to global investment opportunities. As rules continue to adapt to changing geopolitical and financial conditions, investors are advised to stay informed through official releases and trusted industry analyses that interpret these regulatory changes in practical, everyday terms. At the core of these reforms lies a straightforward principle: informed participation beats surprise outcomes when dealing with cross-border securities.