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SRO Act Approved by Federation Council

08.07.2015 12:00 / TASS

The Federation Council has approved the Financial Market SRO Act. The law is aimed at developing non-banking financial market SROs. Drafted by the Bank of Russia and the Ministry of Finance, it provides SROs for 16 financial businesses, with mandatory participation. Each market segment will have a maximum of two SROs, and each entity may become member of only one SRO.

The law introduces SROs for brokers, dealers, asset managers, depositaties, registrars, specialized depositaries, non-state pension funds (NPFs), share investment funds and their management companies, insurers, mutual insurance societies, insurance brokers, microfinance companies etc.

At the same time, SROs may list members from various segments, subject to their compliance with rules. SRO oversight will be performed by the Bank of Russia, authorized to issue fines, demand replacement of SRO management, grant and revoke SRO status. The Bank of Russia may delegate certain regulation and oversight functions to SROs.

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