IIS with 100% insurance for up to 1.4 million rubles

The state is considering the possibility of insuring exchange-traded investments of individuals for an amount of up to 1,400,000 rubles.

Some time ago, the public was informed that an insurance system for IIS (individual investment accounts) of citizens of the country would soon be created in the Russian Federation. This project was announced by the Central Bank of the Russian Federation. From now on, the funds in the corresponding account are subject to insurance, like the usual bank deposits.

What is IIS?

IIS is an account that gives the owner (individual) the opportunity to use one of two options for tax benefits. At first, up to 400 thousand rubles were subject to placement on it, but in 2017 this amount increased to one million with the option of making an additional 400 thousand over the next two years.

One of the main reasons for the emergence of such investment opportunities was the desire of the state to increase market liquidity – for this it was necessary to attract to exchange operations persons who had not previously been involved in trading, but have certain opportunities for this. IIS holders are offered two types of benefits.

The first is a tax deduction (13% of the deposited amount). This option is suitable for people who do not want to become active investors, but do not want to keep their money “under the mattress.”

The system operates in this way: if an individual in 2017 replenishes the account by 400 thousand rubles, then the tax deduction returned to him for this year will be 52 thousand rubles, that is, 13%. Moreover, funds can be invested at the end of the year, and at the beginning of the next one can already count on a deduction. At the same time, there are no prohibitions on investing: funds from IMS can be used in exchange trading, having profit from these operations and retaining the possibility of drawing up a deduction.

In a situation where the owner of the IIA did not claim a deduction, but the account was used in exchange trading, after three years the profit on his account will be exempt from income tax.

According to the Moscow Exchange, by the end of the first half of 2017, citizens had opened more than 230 thousand such accounts. Of these, 88 thousand are actually operating, and the turnover of IMS at the exchange auctions is about 20 billion rubles.

Insurance job prospects

The Central Bank believes that a special structure, independent of both the Central Bank and the DIA (Deposit Insurance Agency), which protects the interests of citizens, should be responsible for the system of insuring funds for IIA. It is planned that the fund will be replenished with regular contributions from market professionals (banks, brokers, etc.).

At the same time, insurance should not take into account market risks – in a situation where investments cause losses, they are not subject to compensation. But such a system will be able to save a broker or a bank that provides such services from possible bankruptcy.

The volume of assets on the accounts subject to insurance will amount to 1,400,000 rubles – as in the situation with bank deposits. The introduction of investment insurance will provide an opportunity to attract investment to the market. Ultimately, however, the Central Bank does not plan to provide traders with an advantage over those who hold deposits in banks.

Infographic: Use of IIS by Russians

Infographics: the use of IIS by Russians

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