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Depositories and brokers will also switch to online checkouts

Since the beginning of July, most legal entities (excluding credit institutions and enterprises in the housing and communal services sector) are obliged to use cash registers when carrying out all settlement transactions with individuals. The obligation to switch to online cash registers will affect securities professionals who are in part non-bank financial institutions.

According to information reports from the Ministry of Finance, it is known that this requirement will not apply to the sale and purchase of securities, but the rest of the settlement transactions with clients must be carried out through the cash register.

“From 01.07.2019, when making payments for services provided by brokers, depositories, as well as for trust management services, they must use the online cashier.”

This decision on the part of brokerage organizations and settlement depositories is met negatively. Many companies in this area counted on a postponement or relaxation, since the Ministry of Finance previously noted in an information letter that there are no requirements for the use of CCP regarding simple crediting of funds to a brokerage account when working with securities. The lack of mandatory use of the cash desk also applies to the remuneration of the trustee under a trust management agreement. Therefore, most organizations do not understand why other brokerage settlement operations have not been exempted from cash registers.

Experts from the Ministry of Finance note that since the entry into force of the law on the use of cash registers, difficulties may arise in the activities of professionals in the securities market. If, as the CCP is introduced, after the beginning of July, problems are identified that require adjustment, the issue of the use of cash registers by brokers and depositories will be reviewed again.

Post Author: Rachel Reinbauer

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