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FMS May Fully Merge with Central Bank in Early 2014

06.11.2013 16:21 / Interfax

The Bank of Russia Financial Markets Service (FMS) may fully merge with the Central Bank and be dissolved in early 2014, two financial market sources told Interfax.

From 1 September 2013, the Central Bank has the powers of Federal Financial Markets Service (FFMS). All FFMS staff have been transferred to a special Bank of Russia division - FMS. Original plans included a 1 January 2015 merger deadline.

A source said that FMS could cease to exist as early as February next year.

Another source claims that the CB is actively forming a new organizational structure that incorporates FMS.

He said that the Bank of Russia central directorate may include new departments, managed by acting deputy heads of FMS: licensed participants (Sergey Kharlamov), collective investment and non-state pension funds (Julia Bondareva), insurance companies (Igor Zhuk), licensing and share issue (Elena Kuritsyna), methodology and reporting (Oleg Pilipets).

He added that the possibility of transferring all inspectors to the Central Bank Chief Bank Inspector’s Office, and lawyers to the Bank of Russia Legal Department.

According to him, the new FMS-augmented CB structure could be approved in November this year, with possible distribution of KPIs between departments.

In mid-October non-banking financial market participants publicly proposed their regulator KPIs and market development strategies to the FMS. Some of the KPIs included growth of the private investors pool, number of IPOs, share investment funds NAV, insurance premiums share in GDP. FMS Head Sergey Shvetsov promised to give market participants a reply in November.

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