Brokers will operate under the new rules

The State Securities Committee has adopted new rules for brokerage activities in the securities market, which entered into force on February 20.

They differ from the older mainly because it requires the implementation of transactions exclusively by clients.

 Under the rules, if a broker-dealer engaged in both activities and the operation coincides with the terms of the customer's order, the first to be granted the application client. The new rules define two types of contracts for the provision of brokerage services - of liability and commission.

Of liability under the terms of the contract, the broker agrees to enter into and execute a contract for the purchase and sale of securities on behalf of the customer and at his expense, for a fee. Commission agreement provides for the conclusion of transactions on behalf of the broker. The system of internal accounting broker must provide separate accounting of funds for the purchase and sale of securities and client money received from the sale of securities owned by the customer. The broker may use the funds to the client of their return, if provided by the contract between the parties. In this case, the contract should specify the terms of revenue sharing from the use of the client.

On written request by the broker should provide information about the price of sale of interest of its securities in the last month. If the client is a corporation, its representative, shall present a broker list of associated persons.

In addition to formal parties, brokerage agreement should be a right to asset recovery, including the recovery of damages for the failure of one of the parties to conclude an agreed transaction.

The broker shall keep client funds in a separate cash account. Transfer of customer funds carried out by their transfer to the account of the broker, cash payment to its cash, or approved by the Stock Exchange on the order due to the exchange.

  The broker provides services to clients only in accordance with its mandate. The order is to be updated at least once a year, if the term of the brokerage agreement exceeds one year. One copy of the instructions is to be given to the client.

No admission orders for documentary securities from customers who do not have custody accounts with the depository.

The client provides one of two types of applications for purchase and sale of securities in the amount indicated on the order: at a limit price (not below / above the set price customer) and market value (the most appropriate purchase price or sale of securities).

The broker maintains a log of orders received from customers. If there were several identical orders, they are executed at the order receipt. If the transaction of the client is not enough, the broker has the right not to execute his order until receipt of the necessary funds. The broker informs the client about the reasons for not doing assignments on time. Report on implementation of broker operations provided to the client.

The client is entitled to a broker, turning to him in writing firm, its assets fully or partially, while not terminating the contract. Be achieved in a period of three working days. - 08B-