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Alexander Voloshin Comments on Government Decree 2085 of 5 October 2016

07.10.2016 11:41 / MIFC

On 5 October 27, Russian Prime Minister Dmitry Medvedev signed Government Decree 2085, voiding Decree 1012 of 19 June 2013 (“Approval of Moscow IFC Roadmap”).

Head of the Moscow International Financial Centre Taskforce Alexander Voloshin comments:

The roadmap passed by the Government in 2013 has become a major instrument in promoting the Russian international financial center project.

Over these past three years, the state and the financial industry have made significant progress in improving financial market regulation, building competitive financial infrastructure, establishing cutting-edge corporate governance standards, etc.

To mention just a few of our achievements:

• the Bank of Russia-based megaregulator is in place and fully functioning

• groundwork has been laid for industry SRO integration in the regulatory system

• non-state pension funds have been relaunched, a pension savings guarantee system has been set up

• Individual Investment accounts have been introduced and are successfully used by private individuals

• Moscow Exchange has dramatically improved quality of service and is highly valued by the market as a joint-stock company

• the Central Depositary has been established

• the Corporate Governance Code has been passed and is being implemented by major state-owned companies

• Civil Code reform has brought our legal system up to par with latest standards

Nevertheless, the MIFC project began to form prior to the 2013 Roadmap and will continue to develop after the Roadmap has expired. The initial action plan was approved by the Government under Prime Minister Putin in 2009, when we passed the Central Depositary and Clearing Acts, simplified IPO procedure, integrated MICEX and RTS into Moscow Exchange.

The 2013 Roadmap became a phase in the MIFC project when the critical mass of decisions had to be passed by the Government, state executive bodies and, of course, by the Parliament.

In the current phase, the financial market reform center is shifting towards the Central Bank as the megaregulator. The Central Bank has established its own strategy – the three-year financial market development guidelines, as well as annual roadmaps.

From our point of view, the MIFC Taskforce aims to see beyond short- and midterm plans, to think in terms of a strategy for the next 10-15 years. We have already started to draft this strategy and are planning, as we have done before, to carry on in the spirit of fruitful cooperation between the financial industry, related businesses, the Bank of Russia and government bodies.

Financial markets megaregulatorProject Group №1Alexander Voloshin