SRO - between traders and dealers. About the structure in Russia with Alexey Yevsikov, CRFIN
Despite the entry into force of the "Law on " in Russia on January 1, 2016, the structure of the work of -dealers in the country is not yet completely transparent not only for traders, but also for companies applying for a license. This includes the SRO or self-regulatory organization, which will have to supervise dealers and report to the Central Bank.
What is SRO in Russia, why do we need it, and what will the magazine do? ForTrader.org found out from Alexey Yevsikov, Managing Director of the Association of SRO CRFIN.
- In your opinion, is it really necessary to regulation in Russia?
- The market emerged in Russia back in the early 1990s and developed spontaneously. In conditions when Russian legislation did not prohibit such activities, but also did not regulate them in any way, companies were registered abroad and built their work in accordance with the jurisdiction of each particular country.
As the market developed, businesses faced the issue of further promotion, strengthening their reputation, greater certainty, i.e. clear rules of the game were needed. In addition, with the growing popularity of the market among the population, the number of various "Internet projects" mimicking companies began to grow like a snowball. These circumstances prompted the leading market players to unite, create our self-regulating organization (SRO) and work on the formation of a legal framework for the entire industry.
-Why have numerous independent regulators failed to do the job?
- Public organizations, which were created by market participants, were not regulators in the full sense of the word. Since they were not endowed by the state with the necessary functions, their powers extended only to their members. That is, such organizations did not generate the rules of the game, mandatory for all market participants.
- What is a SRO as understood by the Central Bank of Russia? What functions will be assigned to SROs?
- In accordance with the legislation that came into effect on January 1 of this year only those companies can operate on the Russian market that have obtained a license of the Bank of Russia to operate as -dealers and joined SRO-dealers. Thus, the scheme of regulation of the market looks like this: The Bank of Russia issues licenses to dealers, assigns a status of SRO-dealers to non-profit organizations, supervises activities of these new professional participants of the securities market through SRO. The -dealers will submit to the Bank of Russia reports, both internal, on transactions, and accounting reports. SROs will also submit to the mega-regulator information - reports on the activities of -dealers - their members.
The functions of the Bank of Russia also include approval of a number of basic standards for the activities of market participants, while the functions of SROs include development of internal operating standards (for inspections, membership conditions, etc.) and the subsequent coordination of these documents with the regulator. In fact SROs will carry out both market admission and continuous monitoring of their members' activitiesThis is extremely important because it will give the mega-regulator information to prevent bankruptcy and license revocation. Also, SROs will consider pre-trial appeals of citizens with complaints against SRO members.
- In addition to obtaining a license, what else will a dealing center need to have in order to join an SRO?
- A dealer who wants to join an SRO will have to share the values of the organization, first and foremost, it concerns the rules of conduct on the market, compliance with standards, submission of reliable reports, etc. Besides, all SRO members will have to transfer 2 million rubles each as a contribution to the compensation fund. This fund is created in case the company's funds are insufficient to fulfill its obligations to traders in case of bankruptcy.
- SRO will be closer to companies or to traders?
- I would say: 50-50. On the one hand, SROs are created by market participants, because it is forbidden to operate without them. But on the other hand, SROs are an element of the market regulation system, and the main goal of regulation is to protect consumers - dealers. If SRO does not perform this function or perform it poorly, the regulator will deprive the SRO of its status.
- Does the CRFIN plan to try to become a SRO for Russian -companies?
- To work for market The company must not only have the relevant license of the Bank of Russia, but also join SRO-dealers. Since last autumn we started to prepare for submitting documents to the Bank of Russia for inclusion in the SRO register on financial markets as a SRO-dealer.
At present, the documents of six companies - members of the CRFIN ("Alpari", "Insta", "PROFIT Broker", "Rodeler RU", "Teletrade" and "Club") to obtain a license - dealer are at the Bank of Russia for consideration. As soon as these companies receive the licenses the RCFIN will submit the documents to the Bank of Russia for inclusion in the SRO-dealer register.
Within the framework of preparation we have carried out a number of activities: changed the legal form, management structure, internal documents and regulations SRO, reviewed the functional committees, developed and sent for approval to the Bank of Russia draft internal standards SRO, launched a new website, which fully meets the requirements of the regulator to disclose information and inform both - market participants, and their customers about all the most important events in the industry.
- How do you see the future in Russia?
- On the whole, we are satisfied with the changes that have taken place at the legislative level: the market now has the main thing that we have been striving for for many years. transparent rules of the gameThe main goal of our work is to improve the quality of our work, which allows us to control and minimize reputational risks, but we also have questions that we are actively discussing at all levels.
The next few years, I think, will be devoted to the formation of regulation and harmonization of legislative and business requirements. But it is clear that even now the market is becoming more civilized and understandable to private investors.
In addition, there are other benefits of restoring order in the market: it is the additional revenues to the budget by increasing the amount of personal income tax and income tax, and new sources of income for citizens, and new jobs in the companies-dealers.
We hope that the dialogue between the business community and the authorities will continue in the same productive way in the future.
Other views on e in Russia
- for newcomers: prohibit or warn?
- "The ideal regulator is the one whose activity is invisible," - Igor Volkov, MFX Group
- "In the current situation, after January 1, a vacuum is formed in the market..." - on the receipt of the license of the Bank of Russia with Yaroslav Dyusuch, Finam JSC
- "Regulation in Russia is an attempt to monopolize the markets," - Alexander Grichenkov, MFX Broker
- On the law "On" and the future of trading in Russia with Stanislav Vaneev
All activities must be regulated. It is important that regulation does not interfere with work.
Finally, our government has turned its attention to Forex. The most important thing is that this attention contributed to the development and not to the bans, that everything was not limited to the Law on Forex. Fair rules are mostly accepted and complied with by the majority.