The Central Bank of Russia (CBR) has introduced new regulations concerning self-regulatory organizations (SROs) in Russia. It will introduce mandatory reports that SROs need to file and will set committees that will review standards established by SROs, the regulator said last week in separate statements published on its website.
Mandatory reports will apply for all SROs from Q1 2017
All SROs in Russia will start sending mandatory operational reports directly to the CBR. Reports will be submitted on a quarterly basis, starting from Q1 2017.
SROs will provide to the regulator in electronic format information regarding the inspections of members, detected violations, consumers complaints, the number of expelled members and the reasons for their expulsion. In addition, they will have to submit annual reports, or earlier in case of any changes, on the members of their governing bodies.
Mandatory reporting for all SROs is introduced for the first time in Russia. Prior to the change, only SROs of consumer credit cooperatives had to file such reports. However, under the existing legislation all financial service providers based in Russia, forex brokers included, are required to join a SRO in their respective sector of operation.
Committees will review standards of SROs
The Russian regulator has established committees that will review and approve basic standards developed by SROs for the different segments of the financial market, as well as develop suggestions on lines of development for financial organizatons and examine draft laws and regulations on the financial market.
Committees will supervise the standards set by SROs for microfinance organisations (MFOs), consumer credit cooperatives (CCCs), brokers, dealers, depositories, forex dealers, registrars and managers.
“The use of common standards by all professional market participants will boost the quality of services provided and make the financial market more transparent and comprehensible for customers,” the bank said in a statement.
Committees on standards will consist of representatives of the cbr and the Russian Ministry of Finance, as well as representatives of SROs in equal proportion from each organisation (at least two thirds of the total number of each committee members).
Standards are developed by SROs and approved by the CBR, but only after the respective committee on standards has reviewed them.
The CBR is Russia’s financial mega-regulator which oversees the banking and all other financial markets in the country. It has been very active recently. It introduced a new regulatory framework for locally-based forex brokers as of 1 January, 2016. The bank recently announce the regulation of binary options is to be decided on by the end of 2017. In addition, the central bank also announced it has undertaken steps to regulate the crowdfunding market, too.