FFMS: Russia's financial markets regulator

Question regulation market in Russia today is becoming more and more relevant, because day by day the number of citizens who have decided to devote themselves to trading in the foreign exchange market is only increasing. Considering the interests of its readers, fortrader.org magazine examines the features and functions assigned to the federal level financial market service - FFMSwhich in the future has the potential to become market regulator in Russia.

Regulation of Financial Markets in Russia - FFMS

• Full title: Federal Financial Markets Service.
• English title: The Federal service for financial markets.
• Abbreviated title: FFMS.
• Subordinate countries: Russia.
• Funding: at the expense of the state budget.
• Degree of trust of traders: tall.

This service is a government agency and reports directly to the government. Its purpose is to ensure the safety of investments and to protect the rights of the individual trader in the financial markets as much as possible. FFMS is an executive body, but is directly involved in the adoption of legislative acts by making recommendations to the state apparatus - the Ministry of Finance.

The basic principles and activities of the FFMS are as follows:

• preparation of regulations and their recommendation to the Ministry of Finance;
• supervision, as well as control over the activities of companies providing services in the financial markets, excluding accounting firms and banks.

Credentials FFMS in terms of control and regulation apply to insurance companies, credit cooperatives, MFOs, intermediaries of exchanges, brokers, dealing centers, etc. The specialists of the service constantly ensure that each financial company provides services to clients in accordance with the law, preparing regular reports on the transactions conducted.

The tasks of the FFMS are as follows:

• organization of research in the financial sector;
• registration at the state level of the emission process securities, preparation of reports on these operations;
• development of normative acts designed to improve the effectiveness of financial market regulation at the legislative level;
• supervision and control over the activities of commercial structures and professional participants of the exchange game;
• to act on the international financial market on behalf of the Russian Federation. For example, FFMS - permanent member  IOSCO (International Organization of Securities Commissions).

Traders' confidence in the FSFM

So, the presence of a government license at the chosen dealing center is a guarantee that its activity is regulated at the legislative level. And a direct or indirect role in this is played by FFMSThe main part of the task of controlling the provision of services in the DC and the preparation of regulations rests on its shoulders.

It is important to understand, however, that until the FFMS is officially appointed as the market regulator in Russia, its field of control ends with the stock and derivatives markets of the country, so if you trade in currencies, unfortunately, this service will not help you in case of problem situations with the company. In this situation, even the unofficial KROUFR will have more weight, so be careful.