How can we improve the categorization of investors to ensure their protection?

Abstract

In the Russian Federation, to regulate the access of retail investors to the stock market, they are divided into the groups of qualified and non-qualified investors. This sector has experienced substantial regulatory changes in the last two years and is still adjusting to the specific features of the Russian securities market in response to newchallenges.The article considers the categories of investors established in the Russian Federation, financial products available for investment, and peculiarities of admission to operations with certain categories of products.The paper analyzes the regulatorypolicyaimed at achieving such goals as retail investor protection and the development of the securities market.The author suggests ensuring that the investment opportunities are matched with investor’s knowledge and experience,as well as limiting the possibility of brokers’ potential abuse. It is noted that the requirement to make informed investment decisions should be applied to all investors equally,and the organization of investor testing due to the obvious conflict of interests cannot be delegated to brokers, independent organizations should be involved in this process.