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Megaregulator Gets Top Level Support

25.01.2013 19:29 / «Kommersant-Online»

The President backed the idea of creating a megaregulator by merging FFMS with the Central Bank. All the human resources of the Service will be transferred to the Bank of Russia. First Deputy Prime Minister Igor Shuvalov said that FFMS will remain an independent service within the CB by 2015, “not diluted within the Bank of Russia”.

Yesterday the megaregulator was approved on the top level. At a stock market development session, Igor Shovalov spoke of the possible launch of the project this year. “We can start the merger de facto beginning at the year-end, with some back-up measures to make sure that regulation does not fall by the wayside in the process of launching the new service”, said Shuvalov.

The President supported the idea. “We need an institution that would create a transparent competitive environment, robust and effective control over private pension funds. Insurance companies require extra oversight. It is important to prevent fly-by-night operations and scams from appearing”, new agencies quote Putin.

The timeline of the major financial regulation reform is as follows: end-2013 to early 2015 the FFMS will be an autonomous division within the CB, not delegating its functions to the CB departments. From 1 January 2015, a joint structure will be fully operational.

Igor Shuvalov says that all FFMS staff will remain on the payroll. “Since Central Bank salaries are considerably higher than those in the FFMS, all FFMS staff will be requested to transfer to the Central Bank of Russia regulator service. The head of this service, First Deputy Chairman of the Central Bank, will have autonomous powers but the final authority will remain with the Chairman of the Bank of Russia”, said First Deputy Prime Minister.

Financial markets megaregulatorProject Group №1Igor Shuvalov