Authors
Prozorov Kh.
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Degree
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Postgraduate Student, Financial University under the Government of the Russian Federation |
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E-mail
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Prozorov.Khariton@gmail.com |
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Location
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Moscow |
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Articles
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Russian capital market: development tendencies, financial literacy and private investors protectionThe current state of the Russian Capital Market private investments as well as its development
impediments are presented in this research. Author states that one of the most fundamental aspects
for the lag in development and unpopularity of the financial market instruments among the general
public is the lack of protection of investments at the stock market through the compensation fund
institution.
Investment insurance scheme functions for a long period of time both at emerging and developed
markets: in 1970 the Securities Investment Protection Corporation was settled in the USA and in
2001 the Financial Services Compensation Scheme was introduced in the UK. While scrutinizing
Russian law enforcement system one can notice the lag of modern mechanisms of security of property
rights from the current changes at the financial market. Nowadays we can witness the growing
tendency for globalization which accounts for the rise in the level of competition which includes
capital markets. That is why it is of primary importance to create and to implement the legislation
for compensation funds at stock markets shortly in order to maintain the leading role between
the participants of the Eurasian Economic Union (where Russian Federation is deeply involved as
a fully legitimate member) and to become one of top-10 financial centers in Europe and Asia. Also,
changes to a pending government law «Private investment accounts insurance» are proposed to
apply. Furthermore, various measures that could help to develop public awareness of investments
and improve financial literacy are being considered as important steps to evolve.
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