The Russian Central Bank tightens the control over information on shareholders. By Yuliya Shibukova, Relationship Manager, GSS Russia
The Central Bank of Russia (CBR), the mega-regulator in the Russian securities market, has tightened its control over the flow of information on shareholders from the registrars to the issuers. The change in CBR’s approach was caused by frequent complaints by shareholders on the misuse of their personal information by issuers.
In accordance with Russian law, the issuer may request that the registrar disclose information on its shareholders only in certain cases envisaged by the legislation. Therefore, the CBR has started to penalise registrars that violate the disclosure procedure and provide issuers with the shareholder’s personal data on irrelevant queries.