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Shvetsov: Russia’s central bank to purge market of unfair players

09.12.2013 16:14 / PRIME

Russia’s central bank will clear the financial market of dishonest players, but has no black lists of such companies, Sergei Shvetsov, the bank’s first deputy chairman and head of its financial market service, said Thursday.

“Purging the industry of unfair players, be it finance, insurance or pension funds, or managing companies is one of our most important tasks. Good capital will not come to this market without fair competition,” Shvetsov said.

The bank will regularly inform the market of its new regulations to allow the companies to adapt and adjust business models, Shvetsov said.

The regulator will also oblige brokers on the forex market to provide their clients with more detailed information on the risks and special features of the forex trade, Shvetsov said. The bank will also introduce requirements on the technical accessibility of forex resources and explanations of quote differences.

The central bank plans to develop the sharing finance mechanisms to allow companies to raise capital, Shvetsov said.

“Our market is in fact formed on the basis of privatization results. There are no that many new companies, that have made initial public offerings,” Shvetsov said.

The regulator plans to create the conditions to help grow internal investors, including a reform of non-state pension funds, the introduction of investment accounts for individuals, the creation of investment consulting institutions, and the implementation of a corporate management code, Shvetsov said.

Shvetsov also said that the central bank intends to raise the attractiveness of non-banking financial instruments among households over several years.

“The product should be attractive, which means that it should be understandable, accessible, and have a higher yield. Moreover, the following factors are important: proper marketing, information disclosure, and the education of citizens,” he said.

The central bank will also examine all management companies, including those that run pension savings of non-state pension funds, in accordance with the yet-to-be-developed criteria, Shvetsov said. The bank will pay special attention to those management companies that fail to provide a return on pension savings in line with the market.

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