The Russian government had launched a regulatory guillotine, a large-scale project aimed at the verification of effective regulations, including those introduced within the past decades. However, this project cannot be applied to the financial market as its regulation was largely formed within the past two decades. However, given the pace of the sector’s development, the financial regulatory framework may contain regulations which unreasonably overload financial market participants.

The Bank of Russia will rely on the professional community’s advice when updating the regulatory framework. Proposals will be considered by a special working group and assessed by subgroups representing core financial market activities.

Forum Analytical Center will be responsible for the collection of proposals and their primary analysis, as well as the provision of methodological support to subgroups.

‘We are open to every reasoned proposal from the market. Subgroups will hold a preliminary discussion of the effect of regulation reversal or update on inclusion, competition and confidence in the financial market, and the costs of its participants and financial consumers,’ said Sergey Shvetsov, First Deputy Governor of the Bank of Russia, commenting on the project.

Core proposals for regulation adjustment and update are expected to be offered by end-2019.

Financial markets megaregulator, Project Group №1