ITinvest Plans Mandatory Ruble Conversions for Customer Balances in Certain Markets
ITinvest, formerly ITI Capital, is assessing a policy that would convert client account balances into rubles when those funds are held in currencies associated with countries deemed unfriendly by Moscow’s current stance. This proposed change would affect accounts that hold currencies from a list of jurisdictions the broker views as not cooperating with Russia in a manner seen as hostile to its interests, a distinction outlined on the broker’s own site.
In March, a government decree established a list of what it calls non-enemy nations. The roster includes all European Union member states, along with Australia, the United Kingdom, Norway, Canada, Iceland, the United States, Ukraine, Japan, New Zealand, and several other states and territories. Russia’s foreign ministry has indicated that any country not on this list falls into a category described as unfriendly by officials such as Foreign Minister Sergei Lavrov. This framing underpins the policy shift being discussed by the broker.
The broker has signaled that the scheduled date for the conversion to rubles is June 13, with an option to opt out by June 9. The notification emphasizes that the forced conversion would not incur a brokerage commission. In parallel, clients retain the right to refuse the mandatory change if they review and sign a document labeled as a Risk Acceptance Receipt within the client’s account feed. The receipt appears under the document flow section of the users’ personal area, making it a part of the formal risk disclosure process intended to clarify duties and consequences tied to this conversion.
Among the financial terms tied to these changes, the broker stated that there will be no brokerage fee for the mandatory conversion itself. A critical caveat for policy implementation is the acceptance of the risk by the client, which would be confirmed through the signed receipt. The policy framework, as presented by ITinvest, also foresees tax and commission adjustments tied to the holding and movement of funds in foreign currencies associated with non-friendly jurisdictions.
Starting May 26, the plan calls for an annual storage commission of 12% on funds held in accounts using currencies tied to non-hostile markets. In addition, a withholding tax of 2% of the transaction amount would be applied to trades executed in U.S. dollars, euros, British pounds, and Swiss francs. When accounts are renewed, ITinvest would levy a 1.5% commission on the amount deposited. These numbers indicate a significant impact on the ongoing cost of maintaining balances in certain currencies, even before any trading activity takes place.
ITinvest operates as an investment firm registered in Moscow, offering brokerage services, custody solutions, and the management of individual investment accounts. The company’s stated mandate covers both execution of trades on behalf of clients and the safekeeping and administration of assets, a framework that commonly includes protective measures and disclosure requirements for investors. The current policy discussion highlights the broader context in which brokers and financial firms in the region must balance regulatory directives, risk controls, and client rights when currency movements involve geopolitical sensitivities. The approach also underscores how firms communicate changes, require informed consent, and handle potential opt-out scenarios while maintaining transparency about associated costs and tax implications. [Citation: ITinvest policy update]
For clients and observers, the situation underscores the importance of understanding how currency policies interact with account maintenance expenses, tax treatment, and the availability of explicit opt-out mechanisms. It remains essential to monitor official notices from ITinvest and related authorities, as well as any updates to the decree that defines the list of non-enemy nations and the criteria used to classify currencies tied to those states. The evolving policy may influence asset allocation strategies, hedging considerations, and the overall cost of owning and maintaining investment positions with exposure to particular currencies. [Citation: Regulatory update]