The tender was announced by Federal Financial Markets Service (FFMS) in August 2012. NAUFOR will receive RUB 8mn for the job. The aim is to draft a concept of preventive risks identification in Russia`s non-banking financial market. The deadline for NAUFOR is 20 December 2012.

The document will contain a substantiated system of criteria and norms (including actual values) of prudential oversight based on international experience, possible FFMS measures in case of non-compliance, methods for regular financial market risks monitoring and modernization of licensed stock market participants reporting.

During stage 1 of the project, within a month, NAUFOR presents a report on the feasibility of prudential oversight for pension funds, brokers, asset managers, central counterparty, microfinance companies and credit unions.

NAUFOR will also draft a list of laws that need amendment, a general approach to these amendments, risk factor assessment and risk evaluation methods for non-banks.

During stage 2, NAUFOR will perform the analysis of gloabal approaches and adaptive implementation in the Russian non-banking financial market of risk oriented regulation and oversight principles according to IOSCO, Basel II, possibly Basel III.

Stage 2 will include drafting risk indicators and peak values, a well-balanced system of preventive measures in case of non-compliance with prudential norms and necessary means of administrative enforcement.

The proposals will be based on NAUFOR`s experience in reporting analysis. Since 2010, the association has performed automatic report processing and ratio calcualtion with detailed analysis of companies` assets and liabilities.

Project Group №1