Fundamental changes in custodians’ regulations

AO UniCredit Bank
Tue, 02/05/2017

Two major acts will reframe and renovate the legislation regulating custody activities on the Russian market                                                                                                 

On 5 April the new Regulation No. 542-P of the Central Bank of Russia came into force. This legislative act follows the introduction of another major regulation enacted in the middle of 2016 (No. 503-P), pertaining to the conducting and maintenance of custody accounts.

These two acts were implemented to update the legislation regulating custody activities on the Russian securities market, which had remained unchanged for 20 years. The legislative action is in line with the Central Bank’s intent to draw a greater focus on the regulations governing the activities of Russian professional market participants – custodians, brokers and registrars.

The new regulation has introduced specific requirements to the following aspects of GSS business:

  • Custody records, registers and documentation flows;
  • BCP/DRP and documents’ storage;
  • Location of the technical means for processing and storage of custody records as well as the maintenance of back up storages of information.

The new legislation terminates FSMC Regulation No. 36 from 16 October 1997, which used to be the major regulation on custody activity on the Russian market.

There is no direct impact on clients’ activities, as the new regulation mainly addresses internal business processes and maintenance of custody records and registers.

 

Ksenia Liskina

Relationship Manager

Ksenia.Liskina@unicredit.ru