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Financial Market Council Proposes Megaregulator Debate

08.10.2012 15:05 / Interfax

On 5 October, the Financial Market Council, a union of self-regulatory financial market participants organizations (SROs), proposed a financial market megaregulator debate, according to the press release.

In early October, President Putin said that the controversial concept of unified financial regulation based in Central Bank should be debated with experts and followed by quick decisions. "The government proposes to unify FFMS functions based in Central Bank. The idea has a lot of supporters, but there are opponents as well. I suggest that the banking and investment communities, as well as anyone who is interested, engage in discussion", said Putin.

The President also said that this "should be done immediately".

The Financial Market Council considers it important for the financial industry and the government to discuss every aspect of the reform and arrive at a mutual opinion to choose the right direction of the effort. The Council decided to schedule open professional community hearings on regulation and oversight reform, with invited government experts, for October 11.

The Council session was attended by Heads of National Stock Market Participants Association (NAUFOR), National Fund Association (NFA), Mational Asset Managers League (NLU) and RTS Non-commercial Partnership.

The release states that the Council members spoke in favour of improving financial market regulation and oversight, however they expressed concern with possible start of the regulation and oversight reforms, bypassing wide debate of its goals and thorough planning, assessment of alternatives, their pros and cons.

It was noted that the reform should not affect the regulatory system`s ability to push forward the financial market, to retain competition between financial companies and products, to maintain or accelerate investor and customer rights protection. The reform should also allow to continue current financial market regulation and oversight activities.

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