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Roadmap for implementation of guidelines for development of financial market in 2019–2021 published

08.04.2019 16:18 / The Bank of Russia

The Bank of Russia has obtained approval from the Government of the Russian Federation of a roadmap outlining the implementation of the Guidelines for the Development of the Financial Market over the next three years. The document was adopted by the Board of Directors in February 2019.

Financial market development measures are divided into four areas: developing competition; establishing a trusting environment; maintaining financial stability; and ensuring access to financial services and capital.

With the aim of ensuring competitive access to financial market infrastructure and data, the Bank of Russia has outlined the following plans for the next three years: developing the Faster Payments System and biometrics-based remote identification mechanism; and launching the Marketplace and digital profile project. Furthermore, the regulator plans to expand the rights of credit history bureaus to receive, process and transfer personal data, as well as use alternative scoring models including behavioural scoring based on social networks and other legal sources.

In its work to increase confidence in financial institutions, the regulator intends to define the concept of conflict of interest in the sale of financial products and develop recommendations on how to avoid or mitigate this conflict. It is planned that the Bank of Russia will work jointly with the Government of the Russian Federation to build a regulation and supervision framework to oversee the activities of auditors.

One of the priorities in ensuring financial stability is increasing the promptness and timeliness of supervisory response. The Bank of Russia intends to expand the use of professional judgment in the supervisory process. This will facilitate early response to problems in financial organisations.

In its goal of increasing access to financial services and capital, the Bank of Russia intends to expand the list of authorised assets for NPFs and insurance companies, and remove barriers to launching and implementing public-private partnership projects and issuing concessionaire bonds. There are plans for measures aimed at stimulating the inflow of direct investments to finance socially responsible projects, which includes issuing so-called “green bonds”.

“The implementation of these planned measures will allow the financial market to respond to arising challenges and the needs of its participants as well as increase confidence among the general public and businesses in financial institutions and the work of the regulator,” said Vladimir Tamozhnikov, Director of the Financial Market Strategy Department.

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