The presence of dishonest competitors on the market renders it opaque, slowing its development by discouraging private and institutional investors. This eventually impacts the economy of the nation as a whole. The shadow financial market disrupts the competitive environment and makes the services of legal market players more expensive. The absence of licensing/accreditation/special status for financial market participants violates consumer rights by bringing high-risk activity out of the safety of a legal framework. Moreover, it subjects responsible market participants to unequal competitive conditions. Illegal participants also damage peoples confidence in responsible participants and in the market as a whole. This aspect can neutralise the efforts of regulators and market players to forge a quality reputation for the domestic financial market.
• What influence does the shadow market for financial services have on the economy at the regional and national levels?
• What practical innovations in identifying and suppressing fraudulent activity can be employed both by regulators and by professional participants?
• What is the true scale of losses experienced by legal financial market players as a result of fraudulent activity?
• How can market participants work with regulators to counteract dishonest behaviour on the financial market?
• What changes to legislation could help swing the balance of power?
• Could modifying standards in the financial sector render the work of the fraudsters unprofitable?
• Is it possible to squeeze illegal players out of the market by making qualitative changes to the operations of professional participants, the market as a whole, and legislative and executive authorities at the local level?