State Duma Reconsiders Draft Law on Insurance for Individual Investment Accounts in Case of Broker Bankruptcy
State Duma deputies are moving to revisit the draft federal law that would insure investments held in individual investment accounts (IIAs) when a brokerage firm goes bankrupt. The bill was initially accepted for first reading in June 2017, as reported by the business daily Vedomosti.
Last week, the specialized State Duma committee overseeing the financial market decided to resume work on the legislation. The decision was confirmed through the electronic database of the lower house of parliament, signaling renewed attention to the project.
According to Vedomosti, the Central Bank of the Russian Federation disseminated the draft amendments to brokers. The proposed changes envision creating an insurance fund that would be supported by self-regulatory organizations operating in the financial sector. The fund would provide coverage solely for assets obtained by citizens through the IIS mechanism. Contributions to the fund would come from brokers, with the exact contribution level, the cap on insurance payouts, and the process for addressing claims from investors delegated to the responsibility of the self-regulatory organizations.
Anatoly Aksakov, the chairman of the State Duma committee on the financial market, indicated that contribution levels would be tied to the assessed risk of a broker’s failure. “The differentiation will clearly be based on risk indicators. I cannot say that the figures will be exceedingly high,” he stated in his comments to the newspaper.
In a related development, a law signed by the former president allowed IIA holders to preserve eligible tax deductions amid ongoing sanctions, ensuring that a portion of their investment activity remains fiscally advantaged under those conditions.
Industry observers note that implementing an insured framework for IIS assets could alter how investors view risk and security in delegated accounts. The proposed fund would function as a risk-sharing mechanism, aiming to shield individual investors from the impact of broker insolvency through a collective pool rather than relying on a single firm’s balance sheet. If adopted, the measure would place new duties on self-regulatory bodies to manage contributions, verify eligibility, and administer claims in a timely and transparent manner. While the exact policy parameters are still under discussion, the emphasis remains on creating a predictable safety net that complements existing regulatory safeguards. The dialogue between the central bank, lawmakers, and market participants continues to shape the contours of this proposal, with the ultimate goal of strengthening confidence in the investment environment for private individuals across the country.