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NAUFOR Plans to Draft 6 New Standards for Licensed Participants in 1H 2014

23.12.2013 15:02 / Interfax

National Stock Market Participants Association (NAUFOR) plans to draft 6 new business standards for licensed participants in 1H 2014, according to NAUFOR press release.

NAUFOR plans to draft rules for brokers to execute client orders on the best terms; rules for conflict of interests prevention by brokers and asset managers; rules for alerting clients of investment-related risks by brokers and asset managers; client reporting rules for brokers and asset managers; rules of assessing clients’ ability to accept investment risk, and classification of securities management types.

Early next year, NAUFOR also plans to finalize the amount of business standards for share funds asset management companies and non-state pension funds.

Today, NAUFOR is ready with drafts of standards for depositaries, internal accounting, risk management, anti-market manipulation and personal data protection.

Drafting and controlling business standards compliance is stipulated in the draft of the SRO Act, posted in the government legislation draft website. According to the draft bill, all non-banks are to join SROs. SRO standards are compulsory for all members.

“The concept in the bill vests SROs with the power to pass compulsory standards for its members, which allows a departure from rigid and inconvenient ‘rule-based regulation’ to ‘principle-based’, more flexible and dynamic. This shared competence area for the CB and SROs, where the latter are supervised by the regulator, creates an opportunity for a breakthrough in financial regulation”, says NAUFOR CEO Alexey Timofeev as quoted in the press release.

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