The state Duma has been developing a draft law on categorizing investors since May of 2019 to protect unqualified investors. The wording of this law in the first reading caused strong criticism from professional and ordinary participants of the financial market. After this reaction, the law has undergone major changes, but there is still no clear opinion about the role and necessity of this bill. The Central Bank believes that the law will protect the novice investor from reckless risks, however professional investors believe that it could provoke an outflowof new clients from the stock exchange. The purpose of this paper is to analyze the new law on categorization of investors and its role in the development of the private investment in Russia. It examines innovationsthat have a positive impact on the stock market, as well as changes that financial market participants do not agree with. The materials of the article are of practical value for both beginners and professional investors.