Regulation in Russia is gaining momentum: the law "On SROs in financial markets" is approved by the State Duma!
The law "On Self-Regulatory Organizations in the Financial Market", finally, adopted by the State Duma of the Russian Federation in third and final reading. Subsequently, the Federal Law was sent to the Federation Council of the Federal Assembly of the Russian Federation, where it was approved, after which it will have to be signed by the head of state.
Who is obliged to join an SRO? -Dealers fall under the SRO law!
The sphere of financial markets, according to the law, includes activities:
- brokers;
- dealers;
- managing;
- depositories and special depositories;
- registrars;
- management companies of investment funds;
- of joint-stock and mutual investment funds;
- non-state pension funds.
In addition, SROs can unite organizations from:
- insurance sphere: insurers, insurance brokers, mutual insurance societies;
- credit sphere: MFIs, credit, housing savings and agricultural cooperatives.
Also in SRO will be united newcomers to the regulated financial market - dealers.
Certain provisions relating to SRO-dealers, as recently as published by the Bank of RussiaThe law "On the Law of the Kyrgyz Republic" and the law "On the Protection of Human Rights and Fundamental Freedoms" were submitted for public discussion..
No more than 3 SROs per segment of the financial market!
The general requirement for companies that are SRO - the presence in their organization as members of SRO at least 26% all companies in the market engaged in the relevant type of activity. That is for each segment of the financial market there can be up to 3 SROs and no more. And it is obvious that each financial organization can be a member of only one SRO in each market segment. The very accession to SRO is strictly mandatory to be able to carry out activities. Once an SRO has been created, joining must be done within 180 days.
Self-regulation" is defined as independent and proactive activities of financial organizations aimed at developing the rules of these organizations and exercising supervisory functions over compliance with these rules.
Strictness in all things! The Bank of Russia will check the standards of SROs for compliance
The rules are divided into internal and basic ones. A self-regulating organization develops both of them independently. However, while internal standards, such as rules for joining a self-regulating organization, rules of professional ethics are approved by the self-regulating organization itself, basic standards, which are responsible for risk management policy, internal control and transactions on the financial market, are reviewed by the Standards Committee and approved by the Bank of Russia.
In order to become a SRO, an organization must submit the necessary documents to the Bank of Russia, after which it can be included in the appropriate register. The regulator is given a period of 30 days to make a decision, which can then be extended for another 30 days.