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FMS to Draft New Capital Adequacy Ratio for Licensed Participants by the Year-End

15.11.2013 13:52 / Interfax

The Bank of Russia Financial Markets Service (FMS) plans to draft a new capital adequacy ratio regulation for licensed securities market participants by the end of this year, said FMS Deputy Head Sergey Kharlamov at the Federal Investment Forum in Moscow on Friday.

He said the ratios will reflect the risk level taken by the licensed participant, i.e. differentiated treatment will be applied.

“The new Head of Service has no problem with this approach. The draft will be ready for debate with the market soon”, he said.

Kharlamov told the press that capital adequacy ratio for brokers will be RUB 1-2mn, if a broker does not accept risks. Today, all brokers have a limit of RUB 35mn.

Kharlamov also announced that a new internal accounting principles will be drafted for brokers and trustees.

“We have a preliminary agreement with NAUFOR to create a joint working group, by the end of January 2014 the draft will be ready and posted on our website for discussion”, he said, adding that the document may be enacted in mid-2014.

FMS Deputy Head stated that next year the Service would present the market with a new chart of accounts for non-banks, that will be based on similar principles as the chart for banks, reflecting the difference in market participants’ type of business.

He pointed out that the transition to the new chart of accounts is slated for early 2016. This is also the tentative enactment date for new prudential oversight requirements.

He highlighted that the new prudential oversight requirements are also up for debate with market participants. “New prudential norms will likely be tested on focus groups in 2014-2015. Official norms will be drafted by 2016”, added Kharlamov.

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