According to him, the primary goal of the state program is forming a regulatory environment for financial market participants, creating better financial services as well as rolling out new competitive financial instruments and products. "Financial market control and oversight are crucial for all countries today. Financial regulation is a key topic for G20", he said.

Siluanov said that the two elements of the state program are financial market laws and regulations and financial market control and oversight.

Four key tasks of area one as follows. Area one, according to Head of Minfin, is financial instruments, infrastructure and markets. "This is the top priority", said Siluanov. The task includes drafting regulations for the life insurance savings system, opening long-term private investment accounts, developing stock exchange infrastructure – all the foundations of a stable financial infrastructure.

Area two is the state regulation of financial markets. It includes prudential oversight, improved regulation across various segments, including private pension funds, law enforcement in the financial market, a wider scope of authority for the credit reference bureau.

"It is no secret that today’s low level of financial market development is down to the absence of indices, financial regulation benchmarks, like the ones that exist in the banking sector. Our current task is laying down the institutional foundations for regulatory and oversight protection of financial sector investments, to ensure their attractiveness for private and institutional investors", said Siluanov.

Area three is improved corporate legislation, disclosure, consolidated oversight and substantiated opinion in banking, creating compensation mechanisms for licensed participants, unification of requirements for insurance market participants. "Partly this task has been completed, the laws and regulations have been drafted, particularly in consolidated oversight and substantiated opinion regulation. We have made strides in this area in a joint effort with the Central Bank", remarked the minister.

Area four is establishing an international financial center in Russia. "We have prepared MIFC roadmaps and are working on necessary decisions", said Siluanov.

Part two of the state program, improved financial markets control and oversight, involves the consolidation of financial markets control and oversight functions by a single controller. In accordance with the Prime Minister’s decree, all megaregulator draft laws must be in place by 11 March 2013 to be introduced to the Russian government, said Siluanov.

The state program will be financed from the already allocated state authorities budget, with no further budget spending necessary, said Siluanov.

The Minister remarked that the program’s goal is for the joint investment portfolio of private pension funds and life insurance to reach 5.5% GDP from today’s 2.6% by 2020. The increased number of financial market participants satisfied with the level of prudential oversight is also part of the plan. Siluanov said that today 30% of market participants view state regulation as adequate and improved. "By 2020, we plan to reach 100% positive feedback, that is make regulation and oversight compliant with international standards and make it comfortable for financial market participants", said the minister.

An important state program KPI is Russia entering the Top 10 International Financial Centers, said the minister. Today, Russia is #61 out of 70 countries, said Siluanov. "Naturally, this will be a time-taking process, but we think the program aim is absolutely correct", remarked the minister.

The end result of the program is establishing an International Financial Center in Russia along with a financial markets leadership in Eurasia, pointed out Siluanov.

Project Group №1