Owners of individual investment accounts (IIA) can no longer buy “quasi-Russian” securities. However, ownership of such securities is permitted if they were purchased before the ban on the purchase of foreign securities came into force. The press service of the Bank of Russia told RIA Novosti about this.
At the end of January, Prime Minister Mikhail Mishustin signed a decree that added foreign securities to the list of those that cannot be purchased using an individual investment account. However, as noted by the Central Bank, the ban does not affect securities of foreign issuers (including “quasi-Russian” securities) purchased on an individual investment account before the ban came into force.
“Thus, investors can continue to own the specified securities and make transactions with them on the IIS. However, at the moment, it is no longer allowed to purchase new securities of foreign issuers using IIS,” the regulator said.
The Bank of Russia noted that the recommendation to clients to close the corresponding short position is related to the government order. To close a short position, it is necessary to purchase a security of a foreign issuer using the property accounted for in the IIS. “At the same time, we believe that the mere existence of the opportunity for investors to open short positions using IIS does not contradict the idea of long-term investment,” the bank added. It is noted that the investor is not limited in choosing an investment strategy.
This year the law on IIS-3 came into force. Accounts of this type provide tax preferences in the form of a combination of benefits of accounts of the IIS-1 type (return of 13% of the deposited amount) and IIS-2 (exemption from tax on income from the account).
Read more in the Kommersant article. “A third type has been added to accounts”.