Self-regulating Organisations (SROs) will execute a part of the supervisory and regulatory functions of the Central Bank of the Russian Federation (CBR) in the Russian financial market. The State Duma adopted the Law "On Self-regulating Organisations in the Sphere of Financial Markets" in its third reading.
In accordance with the law, participation in a SRO for financial companies will be mandatory. It is planned to create 16 SROs for different types of financial activity: brokers, dealers, fund managers, depositories, registrars, specialised depositories, state pension funds, etc.
The CBR will regulate the activity of SROs. It has the right to fine them, to require change in management, as well as grant or revoke the status of the SRO. Therefore, the CBR transfers a part of its supervisory functions to a SRO.
Contact:
Ekaterina Konovalova
Relationship Manager
Global Securities Services Russia
Ekaterina.Konovalova@unicredit.ru