Our progress / MIFC News

23.06.2020 14:15 / The Bank of Russia

Svetlana Zolotareva to head Financial Market Strategy at CBR Svetlana Zolotareva has been appointed Director of the Financial Market Strategy Department. This appointment will be effective from 29 June.

10.03.2020 16:16 / The Bank of Russia

Scope of specialised depositories’ activity may be expanded: Bank of Russia’s consultation paper The Bank of Russia proposes that market participants consider the possibility of expanding the scope of specialised depositories’ activity and modifying this institute. These initiatives are aimed at reducing market participants’ and investors’ costs, increasing competition, and improving the quality of services rendered by specialised depositories.

10.03.2020 15:45 / The Bank of Russia

Number of investors in equity market doubles in 2019 In 2019, the number of brokerage and trust management (TM) clients doubled, to total 4.3 million and 341 thousand persons, respectively. The significant inflow of investors was associated with a rise in the equity market and a decrease in deposit interest rates, according to the Review of Key Indicators of Professional Securities Market Participants. Banks’ policy was also an important contributor to the expansion of the client base: banks attracted nearly one-half of the 2 million new retail clients receiving brokerage services by offering them conventional and structured bonds as an alternative to deposits.

16.01.2020 16:52 / The Bank of Russia

Bank of Russia Commission receives 555 applications for business reputation recovery The Commission reviewing complaints about the Bank of Russia’s decisions on non-compliance with qualification or business reputation requirements received 555 applications over the period of its operation, according to the data as of 1 January 2020. The Complaint Review Commission started its work on 28 January 2018. It reviews complaints from officials and major shareholders (stakeholders) of credit and non-bank financial institutions about recognising them incompliant with the applicable requirements.

29.11.2019 19:40 / The Bank of Russia

Russian joint-stock companies implement over 75% of corporate governance principles Russian exchange-traded public joint-stock companies (PJSC) demonstrate a stable trend towards the improvement of their corporate governance: in 2018, they increased the number of implemented Corporate Governance Code principles and improved the quality of reasoning behind incompliance. These results are contained in the annual Review of Corporate Governance in Russian Public Companies published on the Bank of Russia’s website.

25.10.2019 16:12 / The Bank of Russia

Self-regulation in financial market: current state and prospects The Bank of Russia has analysed the results of the work undertaken by self-regulatory organisations (SROs) of non-bank financial institutions and invites professionals and experts to discuss the prospects of self-regulation in the financial market.

News from 
till 

Scope of specialised depositories’ activity may be expanded: Bank of Russia’s consultation paper

10.03.2020 16:16 / The Bank of Russia

The Bank of Russia proposes that market participants consider the possibility of expanding the scope of specialised depositories’ activity and modifying this institute. These initiatives are aimed at reducing market participants’ and investors’ costs, increasing competition, and improving the quality of services rendered by specialised depositories.

The regulator’s proposals are stipulated in the report published for public discussion.

The institute of specialised depositories is an important element to increase investors’ confidence in the financial market and ensures the protection of the rights and legitimate interests of a wide range of market participants. Specialised depositories’ activity is crucial for consumers (investment unit holders, clients of non-governmental pension funds, insurants, and mortgage-backed securities holders) who need an independent organisation to control their counterparties.

According to the Bank of Russia, the institute of specialised depositories in Russia should switch to a new stage of development. This market is currently highly concentrated, with profitability of the business in decline. Major specialised depositories are dependent on services provided to large clients, which may cause a conflict of interest and affect the efficiency of controllers. In addition, the possibility for specialised depositories to engage in other activities is limited by law. Institutes performing similar functions abroad offer a wide range of additional services, including banking, trust management and consulting services.

The Bank of Russia believes that specialised depositories could become an institute responsible for accounting in the broadest sense of the word, which includes valuation of assets and liabilities and submission of reporting. A key initiative proposed in the report is to stipulate in laws the rights of management companies (MC) to voluntarily assign a part of their accounting functions to specialised depositories. This would help avoid double accounting and reduce market participants’ costs. In addition, it is important to retain the liability of MCs to investors for losses inflicted through incorrect valuation of net assets.

To increase competition, the regulator proposes that specialised depositories should be legislatively entitled to enter new market segments, namely to provide services to any person wishing to have an independent third-party controller (e.g. to control a trustee’s actions), and allowed to combine their core activities with those of professional securities market participants. However, it is necessary to assess the need to set additional requirements for specialised depositories’ activities if the scope of their liability expands.

The Bank of Russia considers that specialised depositories should be engaged in the ownership transfer procedure so as to mitigate the risk of transactions unknown to the controller. This will enhance the protection of investors’ rights. To this end, the Bank of Russia proposes that specialised depositories should be granted a special status enabling state registration of ownership to particular asset types (e.g. real estate and equity stakes in companies) solely upon their consent.

In order to enhance the efficiency of control, it is proposed that specialised depositories should be entitled to independently receive bank statements on accounts and deposits, as well as brokers’ and exchanges’ reports. In addition, the regulator proposes that the obligation of specialised depositories to store assets should be replaced by the obligation to ensure the safeguard of assets.

Suggestions and responses to questions within the public consultations will be accepted until 1 May 2020.

Financial markets megaregulatorProject Group №1

23.06.2020 14:15 / The Bank of Russia

Svetlana Zolotareva to head Financial Market Strategy at CBR Svetlana Zolotareva has been appointed Director of the Financial Market Strategy Department. This appointment will be effective from 29 June.

10.03.2020 16:16 / The Bank of Russia

Scope of specialised depositories’ activity may be expanded: Bank of Russia’s consultation paper The Bank of Russia proposes that market participants consider the possibility of expanding the scope of specialised depositories’ activity and modifying this institute. These initiatives are aimed at reducing market participants’ and investors’ costs, increasing competition, and improving the quality of services rendered by specialised depositories.

10.03.2020 15:45 / The Bank of Russia

Number of investors in equity market doubles in 2019 In 2019, the number of brokerage and trust management (TM) clients doubled, to total 4.3 million and 341 thousand persons, respectively. The significant inflow of investors was associated with a rise in the equity market and a decrease in deposit interest rates, according to the Review of Key Indicators of Professional Securities Market Participants. Banks’ policy was also an important contributor to the expansion of the client base: banks attracted nearly one-half of the 2 million new retail clients receiving brokerage services by offering them conventional and structured bonds as an alternative to deposits.

16.01.2020 16:52 / The Bank of Russia

Bank of Russia Commission receives 555 applications for business reputation recovery The Commission reviewing complaints about the Bank of Russia’s decisions on non-compliance with qualification or business reputation requirements received 555 applications over the period of its operation, according to the data as of 1 January 2020. The Complaint Review Commission started its work on 28 January 2018. It reviews complaints from officials and major shareholders (stakeholders) of credit and non-bank financial institutions about recognising them incompliant with the applicable requirements.