Act as clients of a broker. Professional participants in the securities market

Brokerage activity is the activity of making civil law transactions with securities on behalf of and at the expense of the client (including the issuer of emissive securities when they are placed) or on their own behalf and at the expense of the client on the basis of reimbursable agreements with the client.

Thus, brokers provide intermediary services to clients when they make civil law transactions with securities. Investors (individuals and legal entities), as well as issuers of securities can act as clients of a broker. For investors, the broker provides mainly services for the purchase and sale of securities. In this case, the main task of the broker is to find securities for the client on the market that would suit him at a price, or to sell, on behalf of the client, his securities at a specified price. The broker provides services to issuers during the placement of securities, when the broker acts as an underwriter (i.e. a person who has assumed the obligation to place securities on behalf of the issuer or on his own behalf, but at the expense and on behalf of the issuer). In this case, the main task of the broker is to place the maximum number of securities on the most favorable terms for the issuer.

So, when trading securities brokerage company usually assigned the role of an intermediary - an agent who brings together buyers and sellers of securities. That is, in fact, a broker in the securities market does the same thing as a thrift store - it accepts goods (securities) for a commission, and then sells it to a new investor. The value of a broker is especially evident in the case of circulation of securities on organized stock markets. In such markets, investors have the right to make transactions only through the mediation of brokers.

The relationship between the broker and the client is built on a contractual basis. Therefore, in order to formalize their relationship, the broker and the client must conclude an agreement on brokerage services. Such an agreement is always reciprocal in nature. One of the three types of paid contracts provided for by the norms of the Civil Code of the Russian Federation can act as a contract for brokerage services. These include the following types of contracts:

• a contract of assignment;
• commission agreement;
• · agency contract.

Acting under an agency agreement, a broker (attorney) performs on behalf and at the expense of the client (principal) a transaction or a series of transactions for the acquisition or sale of certain securities. In this case, the client acts as a party to the transactions, respectively, it is he, and not the broker, who has the corresponding rights and obligations.

Under a commission agreement, a broker (commission agent) undertakes, on behalf of a client (committent), for a fee, to make a transaction or a series of transactions for the acquisition or sale of certain securities on his own behalf, but at the expense of the client. In this case, the broker is the party to the transaction. Therefore, initially it is he, and not the client, who has the corresponding rights and obligations under the transaction (even if the client is named in the transaction).

If the broker acts as a commission agent, the commission agreement may provide for the broker's obligation to keep funds intended for investment in securities or received as a result of the sale of securities, and the right to use them by the broker until the funds are returned to the client. In this case, the agreement must provide for the procedure for distributing profits received as a result of the use of these funds.

The broker is prohibited from guaranteeing or making promises to the client regarding the income from investing the funds he holds.

The broker's internal procedures and rules for maintaining the accounting registers must ensure separate accounting of the client's funds held by the broker under a commission agreement intended for investment in securities or received as a result of the sale of securities.

Acting under an agency agreement, the broker (agent) undertakes, for a fee, to complete, on behalf of the client (principal), a transaction or a series of transactions for the acquisition or sale of certain securities on his own behalf, but at the expense of the client or on behalf and at the expense of the client. Technological scheme of interaction between a broker and a client based on agency agreement similar to the broker's work schemes under commission and commission agreements. Therefore, the agency agreement has little independent legal content. Either the commission rules or the commission rules apply to the broker-client relationship, depending on how the agent is acting.

The broker in the course of its activities in the securities market operates in cash clients. Therefore, the activities of brokers are strictly regulated. Brokerage activities in the securities market must be carried out according to certain rules.

When carrying out brokerage activities in the securities market, a professional participant (broker) is obliged to:

• personally execute clients' orders, except for the case of transferring transactions to another broker, if such transfer is provided for in the agreement with the client or the broker is forced to do this by force of circumstances to protect the interests of his client with the notification of the latter;
• fulfill obligations under contracts concluded with clients, acting in good faith and solely in the interests of clients;
• · when concluding a contract for brokerage services, notify the client in writing about the risks associated with the implementation of transactions in the securities market;
• · make transactions of purchase and sale of securities on behalf of clients in a priority manner in relation to the broker's own transactions;
• · bring to the attention of clients all the necessary information related to the execution of clients' orders and the fulfillment of obligations under the securities purchase and sale agreement, including not recommending a transaction to the client without taking measures so that the client could understand the nature of the risks associated with it;
• within the terms established by the agreement, submit to the client reports on the progress of the execution of the agreement, statements on the movement of funds and securities on the client's accounting accounts (including data on the amount of commission and other remuneration of the broker) and other documents related to the execution of the agreement with the client and instructions client;
• take measures to ensure the confidentiality of the name (name) of the client, his payment details and other information received in connection with the fulfillment of obligations under the contract with the client, with the exception of information to be submitted to the Federal Commission and other bodies within their competence established by law Russian Federation, if the contract with the client contains a trade secret clause;
• · not to manipulate prices on the securities market and coerce the purchase or sale of securities, including by providing deliberately distorted information about securities, issuers of securities, prices for securities, including information presented in advertising;
• Compensate the client for losses in the manner prescribed by law;
• · approve the procedure for providing information and documents to the investor in connection with the circulation of securities, including the methods and forms of provision, the amount and procedure for payment for provision services;
• · comply with the requirements of the legislation of the Russian Federation and regulatory legal acts of the Federal Commission.

When carrying out brokerage activities in the securities market, a professional participant performs actions and transactions related to the implementation of brokerage activities, in particular:

• · stores, uses and records customer funds intended for investment in securities or received from the sale of securities, if this is provided for by the terms of the agreement;
• certifies the ability of customers - individuals through their actions to acquire and implement civil rights create civil obligations for themselves and fulfill them in full or in part;
• · ascertains the competence of the heads of clients - legal entities to represent the interests of legal entities and to carry out actions that entail legal consequences for these legal entities;
• · provides consulting services on the acquisition of securities and other investments;
• · has the right to request from clients information about their financial condition (solvency) and investment purposes, which can help in the correct and timely fulfillment of obligations to clients.

The broker has the right to carry out margin transactions, i.e. transactions made with the use of cash and (or) securities loaned by a broker to an investor. Thus, when making margin transactions, the relationship between the broker and the client from the relationship of the type "client - intermediary (agent)" is transformed into relations of a more complex level of the type "creditor - debtor". The creditor in margin transactions is the broker, and the client (investor) is the debtor. Such relationships must be properly formalized. However, the conclusion of a special agreement for margin transactions is not required. The terms of the loan agreement, including the amount of the loan or the procedure for determining it, may be determined by the brokerage agreement. At the same time, a document certifying the transfer of a certain loan sum of money or a certain number of securities, the broker's report on completed margin transactions or another document specified by the terms of the agreement is recognized. The broker has the right to charge the client interest on loans provided. In its turn, borrowed funds, provided by the broker to the client when conducting margin operations “on margin”, are short-term loans that the broker takes from the bank against the security of the securities purchased for the client as collateral for a bank loan. As a rule, the interest on loans provided by the bank to brokers approaches the interest on bank loans for large prime borrowers because the loans are secured by securities and represent significant amounts.

As collateral for the client's obligations under the granted loans, the broker is entitled to accept only liquid securities included in the quotation list of the stock exchange, owned by the client or purchased by the broker for the client on margin transactions. The amount of collateral provided by the client is determined by the broker market value acting as collateral for securities established at the auctions of the stock exchange or other organizers of trading on the securities market, less the discount established by the agreement.

Securities serving as collateral for the client's obligations under margin transactions are subject to revaluation in the following cases: failure to repay the loan amount or borrowed securities on time; non-payment of interest on the granted loan on time; if the amount of collateral becomes less than the amount of the loan granted to the client (the market value of the borrowed securities established at the auctions of the stock exchange), the broker enforces the funds or securities acting as collateral for the client's obligations on the loans provided by the broker by selling such securities at the auctions of the stock exchange .

If, when a broker combines his activities in the securities market with dealer activities, a conflict of interests of the broker and his client arises, about which the client was not notified before the broker received the corresponding instruction, and it leads to causing losses to the client, the broker is obliged to compensate them in accordance with the procedure established by law . To do this, the broker must have own funds, the standard of which is established by the FFMS.

As noted earlier, the functioning of the market requires sellers, buyers and intermediaries representing their interests on it. Brokers and dealers usually act as intermediaries in the securities market.

A broker is a professional participant in the securities market who is engaged in brokerage activities. In accordance with the Law “On the Securities Market” “... brokerage activity is the performance of civil law transactions with securities as an attorney or commission agent acting on the basis of a commission agreement or commission or a power of attorney for such transactions.”

Can act as a broker individuals as well as organizations. Professional brokerage on stock market performed on the basis of a license obtained in the prescribed manner. The broker obtains this license from local financial authorities. The law allows the combination of brokerage activities with other activities in the securities market.

To operate in the securities market, a broker or brokerage organization must meet the following qualification requirements: to have specialists on staff who have qualification certificates; have a minimum own capital necessary for liability to investors (at least 50 million rubles); have a developed accounting and reporting system that accurately and completely reflects transactions with securities.

IN Russian practice no fixed specialization is established for the broker and dealer. Therefore, if a broker is also engaged in dealer activities, he is obliged to notify his clients about this. It is the duty of the broker to faithfully execute the orders of clients. He must put the interests of clients first and fulfill them in the order in which they are received.

The broker and the client build their relationship on a contractual basis. In this case, both the commission agreement and the commission agreement can be used. If an agency agreement is concluded, this means that the broker will act on behalf of the client and at the expense of the client, i.e. the client is the party to the concluded transactions and he is responsible for the execution of the transaction. If preference is given to a commission agreement, then when concluding a transaction, the broker acts on his own behalf, but acts in the interests of the client and at his expense. The party to the transaction in this case is the broker and he is responsible for its execution. According to existing legislation, the client, before the execution of the contract, has the right to unilaterally terminate its operation.

The execution of the contract of commission or commission is considered to be the transfer to the client of the broker's official notice of the conclusion of the transaction. As a rule, the broker registers the concluded transaction and controls the change of ownership - the timely introduction of the necessary changes into the register of shareholders.

The broker receives the main income from commissions charged from the amount of the transaction. Therefore, the task of the broker is to have clients, among whom would be both suppliers of securities and their buyers, owners of temporarily free funds.

Most often, a broker combines his activities with advising clients on the securities market. If in foreign practice large companies act as investment consultants investment banks or a company, then in Russian practice this function can be performed by an individual who does not need to have a license for this type of professional activity, but it is enough to have qualification certificate. IN Lately there is a growing interest in investment advice from large commercial banks and investment companies. Advice on the securities market can have three areas:

Justification of the choice of the holder of the register of shareholders;

Development of bill programs;

Assistance to issuers in creating and maintaining their image.

A dealer is a professional participant in the securities market (a person or organization) engaged in dealer activities. The Law on the Securities Market defines that “dealer activity is the performance of securities purchase and sale transactions on its own behalf and at its own expense by publicly announcing the purchase and (or) sale prices of certain securities with the obligation to purchase and (or) sell certain securities. securities at the prices announced by the person carrying out such activities.

The dealer's income consists of the difference between the selling and buying prices. Therefore, the dealer must constantly monitor and take into account the changing market conditions. It usually specializes in certain types of securities, but large organizations may serve the securities market as a whole.

Acting as a market operator, the dealer announces the sale and purchase prices, the minimum and maximum number of purchased and (or) sold securities, as well as the period during which the announced prices are valid.

Professional Members securities market - these are legal entities, including credit institutions, as well as (individuals) registered as entrepreneurs who carry out certain types of activities. Depending on the type of activity, the following participants in the securities market can be distinguished - brokers and dealers. One of the professional participants in the securities market may be management companies, regardless of the specific legal form of their organization, but having a state license to manage securities.

Brokers

A broker is a natural or legal person who works on behalf of a client for a commission. Brokers operate under a license. They must have a staff of professional professionals, a certain capital, a system of accounting and reporting on transactions with securities. Brokers also provide advice to clients.

The broker makes transactions with securities on behalf of and on behalf of the client on the terms of a commission or commission agreement. A broker is a professional participant in the securities market who is engaged in brokerage activities. Both individuals and organizations can act as a broker. The duties of a broker can be both individuals and organizations. The duties of a broker include conscientious execution of clients' orders. He must put the interests of clients first and fulfill them in the order in which they are received.

The main functions of the broker are:

Making civil law transactions with securities as a commission agent;

Making civil law transactions with securities as an attorney;

Ensuring proper storage and separate accounting of clients' securities in accordance with the requirements of the FC of the Central Bank of Russia;

Assuming a guarantee for the execution of a securities purchase and sale transaction by a third party;

Information, methodological, legal, analytical and consulting support for operations with securities;

Bringing to the attention of customers all the necessary information, including information about existing risks;

Disclosure of information about their operations with securities in cases and in the manner prescribed by applicable law.

The broker and the client build their relationship on a contractual basis. In this case, both the commission agreement and the commission agreement can be used. If an agency agreement is concluded, this means that the broker will act on behalf of the client and at the expense of the client, i.e. the party to the concluded transactions is the client and he is responsible for the execution of the transaction. If preference is given to a commission agreement, then when concluding a transaction, the broker acts on his own behalf, but acts in the interests of the client and at his expense. The party to the transaction in this case is the broker and he is responsible for its execution. According to existing legislation, the client before the execution of the contract has orders or commissions, it is considered to be the transfer to the client of an official notification of the broker about the conclusion of the transaction. The broker receives the main income from commissions charged from the amount of the transaction.

They must have a staff of professional professionals, a certain capital, a system of accounting and reporting on transactions with securities. Brokers also provide advice to clients.

If a broker provides services for the placement of emissive securities, the broker shall have the right to purchase at his own expense securities not placed within the period stipulated by the agreement.

The broker must fulfill the orders of clients in good faith and in the order in which they are received. Transactions carried out on behalf of clients are in all cases subject to priority execution in comparison with dealer operations of the broker himself when he combines the activities of a broker and a dealer.

In the event of a conflict of interest between the broker and his client, about which the client was not notified before the broker received the corresponding order, and if the conflict led to losses for the client, the broker is obliged to compensate them in accordance with the procedure established by the civil legislation of the Russian Federation.

Clients' funds transferred by them to a broker for investing in securities, as well as funds received from transactions made by a broker on the basis of agreements with clients, must be kept in a separate bank account opened by a broker in credit institution(special brokerage account). The broker is obliged to keep a record of each client's funds held in a special brokerage account and report to the client. The funds of clients held in a special brokerage account (accounts) cannot be levied on the obligations of the broker. The broker is not entitled to credit his own funds to a special brokerage account, except in cases of their return to the client or the provision of a loan to the client. The broker has the right to use in his own interests the funds held on a special brokerage account (accounts), if this is provided for by the brokerage service agreement, guaranteeing the client the execution of his instructions at the expense of the specified funds or their return at the request of the client. The funds of clients who have granted the broker the right to use them can be credited by the broker to his own bank account. These requirements do not apply to credit institutions.

Thus, the broker, in accordance with the law, can open for the client (if it is included in the agreement) a separate bank account - a special brokerage account, on whose funds cannot be levied on the obligations of the broker. And the broker can credit the funds of the client, who granted him the right to use them at his discretion in accordance with the agreement, to his own bank account. And then all the funds on this account can be levied on the obligations of the broker.

The broker has the right to provide a client with a loan of funds or securities for making securities purchase and sale transactions, provided that the client provides security. Transactions made using cash or securities lent by a broker are called margin transactions.

The terms of the loan agreement, including the amount or the procedure for its determination, may be determined by the brokerage agreement.

The broker has the right to charge the client interest on loans provided. As collateral for the client's obligations under the granted loans, the broker is entitled to accept only securities belonging to the client or purchased by the broker for the client under margin transactions.

The amount of collateral provided by the client is determined by the broker at the market value of the collateral (securities) minus the discount established by the agreement.

Only liquid securities included in the quotation list of trade organizers on the securities market may be accepted as collateral for the client's obligations under the loans provided by the broker.

5.2. Main participants of the securities market

It is allowed to engage in the issue, placement and trading of securities by professional participants who have received the appropriate license. Participants in the securities market can be both legal entities and individuals serving the functioning of the market.

The main participants include:

- issuers- legal entities or executive authorities that, in accordance with the law, have the right to issue and circulate securities on their own behalf and bear obligations to the owners of securities to exercise the rights assigned to them;

- investors- persons owning securities. All investors can be classified according to various criteria.

Depending on the investment style allocate:

- tacticians - tend to quick receipt income. The main source of profit is speculation in securities;

- strategists - are not aimed at maximizing profits, the main task is considered to be the opportunity to participate in the management of JSC. In one case, this is representation on the board of directors, in the other, an attempt to seize a controlling stake.

Taking into account action tactics distinguish:

- risky investors, taking risks to obtain maximum income in a short period of time;

- conservative investors, constituting portfolios of securities in the long term. Therefore, the composition of the stock instruments included in them changes rather slowly;

- moderate investors, as a rule, these are elderly people who take little risk and do not seek to ensure an increase in the size of their deposits in the long term.

Depending on the existing status can be distinguished:

- corporate investors - it's basically joint-stock companies having free cash;

- institutional investors, investing in the most profitable portfolios at a certain point in time, made up of state, municipal and corporate securities. Banks, investment funds and companies, pension funds and insurance companies can act as institutional investors.

Private investors are individuals who use their savings to purchase securities and subsequently receive certain benefits. As a rule, they are employees of privatized enterprises, who acquired shares in their enterprises in the initial period of privatization. They are the main owners of corporate shares of the Russian stock market.

All investors seek to maximize income from the growth in the market value of securities and payments on them at minimal risk investment;

- professional RCB participants- legal entities or individual entrepreneurs carrying out activities specified in the law "On the Securities Market". According to this law, all types of professional activity in the securities market are carried out on the basis of a license issued by the Federal Commission for the Securities Market (FCSM) or its authorized bodies;

- investment institutions- financial intermediaries that perform strictly defined functions in the securities market at the expense of their own and borrowed funds. An organization engaged in intermediary activities must be a legal entity. The founders of investment institutions can be both Russian and foreign legal entities.

Investment institutions include:

1. stock brokers- exchange intermediaries when concluding transactions between buyers and sellers of securities. Both individuals and organizations can act as a broker. Professional brokerage activities in the stock market are carried out on the basis of a license obtained in the prescribed manner from local financial authorities.

For a broker or brokerage organization must meet the following qualification requirements:

To have in the staff of specialists who have qualification certificates;

Possess the established minimum equity capital (at least 50 million rubles);

Have a developed accounting and reporting system that accurately and completely reflects transactions with securities.

IN broker duties includes conscientious execution of customer orders. The broker and the client build their relationship on a contractual basis. In this case, both the commission agreement and the commission agreement can be used. In the first case, the broker acts on behalf and at the expense of the client; in the second, he acts on his own behalf, but acts in the interests of the client and at his expense.

The fact of execution of the contract of commission or commission is considered to be the transfer to the client of the broker's official notice of the conclusion of the transaction.

The broker keeps, uses and accounts for clients' funds intended for the purchase of securities; certifies the legal capacity of clients - individuals and the competence of clients - legal entities; provides consulting services on the acquisition of securities; has the right to request information from customers about their financial condition.

When implementing brokerage activities in the securities market a professional market participant must:

Personally execute orders of clients in the order they are received;

Act solely in the interests of clients;

When concluding a contract for brokerage services, notify the client in writing about possible risks;

Bring to the attention of the client all the necessary information related to the fulfillment of obligations for the purchase and sale of securities;

Ensure the safety of the client's securities;

Within the terms established by the contract, provide the client with a report on the progress of its implementation;

Ensure the confidentiality of the client's name and payment details.

The broker receives its main income from commissions, the amount of which depends on the amount of the transaction.

2. stock dealers- members stock exchanges and banks engaged in the purchase and sale of securities on their own behalf and at their own expense by publicly announcing the purchase and sale prices of securities. The dealer's income consists of the difference between the selling and buying prices!

When implementing dealership activities in the securities market a professional participant should:

Fulfill the obligations specified in the contract of sale;

Timely inform clients about all incoming information on the purchase and sale of securities;

Do not deliberately manipulate prices and do not give the client distorted information about the state of the market;

In the event of conflicts related to the implementation of dealer activities, immediately inform the client about this;

Make transactions for the purchase and sale of the client's securities as a matter of priority in relation to their own transactions;

Keep records of transactions with securities in accordance with the requirements of regulatory legal acts and self-regulatory organization;

Submit reports in the manner prescribed legal acts Federal Commission;

In accordance with the Law on the Protection of Rights and legitimate interests investors in the securities market” to inform the investor about his rights and provide the necessary information and documents at his request; comply with the laws of the Russian Federation.

When carrying out dealer activities in the securities market not allowed:

Conclusion of transactions for the purchase and sale of securities, if the depository keeping records of the said transactions does not have a license to carry out depositary activities;

Conclusion of purchase and sale transactions, if the registrar re-registering ownership rights to the said transactions and securities does not have a license for the right to conduct activities related to compiling a register of registered securities holders;

Making transactions with securities before their full payment and registration of a report on the results of their release;

Offer to an unlimited circle of persons of securities of issuers without disclosing information about securities in full;

Making transactions using the services of organizations that do not have a license to carry out professional activities in the securities market.

3.investment advisors, providing consulting services on the securities market.

4.Investment companies - legal entities making transactions in the securities market at their own expense. They play an important role in the placement of securities of a new issue. In the primary market, investment companies perform the following main functions: forming the issue of securities, underwriting, creating a syndicate, placing securities, stabilizing the prices of distributed financial resources, preparing conditions for subsequent operations with distributed securities in the secondary market.

Formation of the issue of securities. At this stage, two fundamental questions are solved: how much capital is needed for the issuing company and what type of securities it is advisable for it to issue.

Underwriting. This term originally meant that investment company redeems the entire volume of securities from the issuer during their initial placement and distributes them itself through the system of exchange and over-the-counter trading. There are the following types of underwriting:

- based on firm commitments. Under the terms of the agreement with the issuer, the underwriter is obligated to buy back all or part of the issue at fixed prices. Thus, he risks losing not only his reputation, but also his own funds;

- based on the best traditions. Under the terms of the agreement with the issuer, the underwriter undertakes to make every effort to place securities. He bears financial responsibility for the redemption of non-distributed parts of the issue, while all financial risks fall on the issuer;

- "stand-by". The underwriter undertakes to redeem for subsequent placement a part of the issue not redeemed by the old shareholders or those who acquired this right from them;

On the principle of "all or nothing". The underwriter undertakes to fully place the issue, if he fails to fulfill his obligations, the contract is terminated;

Competitive underwriting. Preparation and redemption of the issue are carried out on the basis of competition between different underwriters. The contract with the issuer is concluded by the one who offers the best price and other conditions.

The interaction between the underwriter and the issuer is determined by the terms of the agreement, which takes into account the situation on the securities market and the strategy of investors and largely depends on the following factors:

The volume of funds raised through a public issue of shares;

Choosing the type of shares most suitable for the given conditions of the issuer, as well as the rights associated with them;

Selecting underwriters or a group of underwriters who could best place the proposed securities in accordance with their powers;

Issuance costs, including legal fees, audit issuer, etc.;

The offer price at which the new issue will be placed.

Create a syndicate. After the issuing firm has selected an investment company and entered into an underwriting agreement with it, this investment company is called leading (leading) underwriter. Its task is to ensure the fastest possible sale and distribution of issued securities. It is very difficult to do this alone. Therefore, the lead underwriter contacts other investment companies, inviting them to participate in the sale and distribution of the new issue. Eventually, a group of investment companies is created (led by a lead underwriter) called syndicate. The syndicate is prohibited from changing the announced sale price, therefore, if new securities were revalued, the process of their sale may be so delayed that the exchange rate will begin to fall, making it difficult to sell the issued funds. Sometimes, to prevent major losses, the lead underwriter is allowed to work to stabilize the market price.

Placement of securities. This is the most responsible and difficult stage, largely dependent on the economic situation in the country, the progressive development of companies and industries, as well as effective interaction between issuers and underwriters. In Russia, the mechanism for the placement of securities through underwriting and investment companies is under development.

Stabilization of the market price. To avoid a serious drop in the quotes of the securities of the issuing company in the secondary market, the lead underwriter is allowed to place, within a certain period from the moment new securities enter the primary market, a standing instruction (order) to purchase these securities in the secondary market. The procedure for price stabilization in Russian legislation is at the stage of settlement.

Preparation of conditions for operations in the secondary market begins immediately after the start of placement of securities in the primary market. This activity includes all interested dealers and brokerage houses with which the syndicate maintains relations.

Investment funds - legal entities (usually open and closed joint-stock companies) that attract free funds from the population and other investors in order to work effectively on the stock market. Guarantor of activity investment funds the bank is acting.

In accordance with Russian legislation investment funds may issue, sell and hold securities; manage them on behalf of the client; provide consulting services and carry out settlements on behalf of clients.

Investment funds carry out the following activities:

Attract and place funds of the population and legal entities in the primary and secondary securities markets;

They issue securities to form reserve or borrowed capital.

Investment fund open type may generate its resources by issuing ordinary shares, which can only be sold back to the fund itself. The size of the fund is not fixed and can be expanded through new issues and acquisitions. The number of shareholders of an open company is not limited.

Investment fund closed type generates its own resources through the provision of certain consulting services, as well as the sale of shares and bonds on the securities market. Moreover, the issue of shares is one-time and fixed in volume. The Fund is not obligated to buy back shares from investors. The number of shareholders of a closed company should not exceed 50.

The necessary conditions for the successful functioning of investment funds are:

Availability and organization of competent professionals who are able to draw up portfolios of securities and manage them effectively;

Efficient distribution of investments in various stock market instruments, ensuring risk reduction;

High liquidity of invested funds, providing quick sale and the purchase of new, more attractive securities;

The possibility of attracting funds from various categories of the population.

Activities of investment institutions controlled by government agencies and must meet the following requirements:

Mandatory implementation of all acts and laws of the Russian Federation on working with securities;

Availability of professional specialists with a qualification certificate for working with securities;

Availability of minimum own funds to ensure financial stability;

Availability of an accounting and reporting system that fully and accurately reflects transactions with securities;

Possession of a license allowing to engage in professional activities.

The types of investment funds are:

Pension funds are independent financial and credit institutions that carry out state management of pension provision;

Insurance funds created to provide independent sources of income for the most important expenses for society at a certain stage of its development.

Widely developed in the West investment, insurance and pension funds not received due recognition in Russia.

As noted earlier, the functioning of the market requires sellers, buyers and intermediaries representing their interests on it. As intermediaries, as a rule, brokers and dealers act.

In accordance with the Law “On the Securities Market”, “brokerage activity is the performance of civil law transactions with securities as an attorney or commission agent acting on the basis of an agency or commission agreement, as well as a power of attorney for such transactions.”

Both individuals and organizations can act as a broker. Professional brokerage activity in the stock market is carried out on the basis of a license obtained in the prescribed manner.

A professional participant in the securities market engaged in brokerage activities is called a broker.

The broker and the client build their relationship on a contractual basis. In this case, commission agreements and commissions can be used. If an agency agreement is concluded, this means that the broker will act on behalf of the client and at the expense of the client, i.e. the client is a party to the concluded transactions and he is responsible for the execution of the transaction. If a commission agreement is concluded, then when concluding a transaction, the broker acts on his own behalf, but acts in the interests of the client and at his expense. The party to the transaction in this case is the broker and he is responsible for its execution.

The execution of the contract of commission or commission is considered to be the transfer to the client of the broker's official notice of the conclusion of the transaction.

If the broker acts as a commission agent, the commission agreement may provide for an obligation to keep funds intended for investment in securities or received as a result of the sale of securities with the broker on off-balance accounts and the right to use them by the broker until the funds are returned to the client in accordance with the terms of the contract.

Reassignment of transactions by brokers is allowed only to brokers. Reassignment is allowed if it is stipulated in the commission or commission agreement, or in cases when the broker is forced to do so by force of circumstances to protect the interests of his client with the notification of the latter.

The transfer of trust is carried out in accordance with the civil legislation of the Russian Federation.

The broker receives the main income from commissions charged from the amount of the transaction. Therefore, the task of the broker is to have clients, among whom would be both suppliers of securities and their buyers, owners of temporarily free funds.

The broker must execute clients' orders in good faith and in the order in which they are received, unless otherwise provided by the contract with the client or his order. Transactions carried out on behalf of clients are in all cases subject to priority execution in comparison with dealer operations of the broker himself when he combines the activities of a broker and a dealer.

If the broker has an interest that prevents the execution of the client's order on the most favorable terms for the client, the broker is obliged to immediately notify the latter of the existence of such an interest.

If the conflict of interests of the broker and his client, about which the client was not notified before the broker received the corresponding order, led to the execution of this order to the detriment of the interests of the client, the broker is obliged to compensate for the losses at his own expense in the manner prescribed by the civil legislation of the Russian Federation.

Dealer activity is the execution of securities purchase and sale transactions on its own behalf and at its own expense by publicly announcing the purchase and / or sale prices of certain securities with the obligation to purchase and / or sell these securities at the prices announced by the person carrying out such activities.

A professional participant in the securities market carrying out dealer activities is called a dealer. Only a legal entity that is a commercial organization can be a dealer.

The dealer's income consists of the difference between the selling and buying prices. Therefore, the dealer must constantly monitor and take into account the changing market conditions. It usually specializes in certain types of securities, but large organizations may serve the securities market as a whole.

Acting as a market operator, the dealer has the right to announce the essential terms of the securities purchase and sale agreement: the minimum and maximum number of securities to be bought and/or sold, as well as the period during which the announced prices are valid. If there is no indication in the announcement of other essential conditions, the dealer is obliged to conclude an agreement on the essential conditions proposed by his client. If the dealer avoids concluding an agreement, a claim may be brought against him for the forced conclusion of such an agreement and / or for compensation for losses caused to the client.

In the domestic market, an investment company can act as a dealer, one of the functions of which is to invest in securities, carry out transactions with them on its own behalf, including through quotation. Credit institutions were the main dealers in the government debt market.

Under the activities of securities management is recognized the implementation legal entity or individual entrepreneur on its own behalf for a fee within a certain period trust management transferred to him into possession and belonging to another person in the interests of this person or third parties indicated by this person:

· securities;

· funds intended for investment in securities;

· cash and securities received in the course of securities management.

A professional participant in the securities market, carrying out activities in the management of securities, is called a manager.

The procedure for carrying out securities management activities, the rights and obligations of the manager are determined by the legislation of the Russian Federation and agreements.

The manager, when carrying out his activities, is obliged to indicate that he acts as a manager.

If the conflict of interests of the manager and his client or different clients of one manager, about which all parties were not notified in advance, led to the actions of the manager that caused damage to the interests of the client, the manager is obliged to compensate for the losses at his own expense in the manner prescribed by civil law.

Similar information.