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NAUFOR Board of Directors Greenlights Professional Standards Draft

30.07.2014 16:48 / MIFC

On 28 July, the NAUFOR Board of Directors approved the draft of Professional Standards, and passed it on for review to NAUFOR committees. Following approval by committees and the Board, the Standards will be forwarded for approval to the Central Bank.

The Standards are a package of seven documents:
• Rules of Best Terms Execution of Client Orders
• Rules of Risk Awareness
• Rules of Client Investment Profile Valuation
• Classification of Securities Management
• Rules of Conflict of Interest Prevention
• Rules of Client Reporting
• Rules of Securities Market Risk Management.

These standards will enable NAUFOR members to benefit from lesser capital requirements. The related Central Bank directive is currently registered by the Ministry of Justice and is due for enactment on 1 September 2014. According to the document, requirements for prime brokers with SRO membership could be brought down from RUB 35mn to RUB 15mn, for asset managers - from 35 to 5 million roubles.

NAUFOR began to draft the standards in late 2013. These standards are expected to become mandatory for SRO members when the Financial Market SRO Act has been passed.

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