22.04.2016, 14:11
CB and Financial Market Participants Discuss New Regulation Approaches
OREANDA-NEWS. The Bank of Russia held the first meeting on the future of implementing proportional regulation in the securities market. The Securities Market and Commodity Market Department summoned representatives of brokers, dealers, managers, depositories and self-regulated organisations (SROs) to discuss the issue.
Proportional regulation of financial organisations envisages their division within a sector into groups according to business models and accepted risks, as well as special regulatory requirements for each group. The participants deliberated about possible criteria for such division and the aspects of requirements for each group concerning equity capital, reporting and staff. A discussion on the challenges before the industry also took place.
The regulator offered to establish a working group consisting of SROs representatives which will summarise and analyse the submitted proposals. It is expected that the first results of the group's activities will be presented at the International Financial Congress in Saint-Petersburg in June 2016.
The implementation of proportional regulation is set out in the project 'Guidelines for the Development of the Russian Financial Market in 2016-2018'. This approach to the regulation of the activities of professional participants in the securities market will help to minimize costs of the sector, improving its resilience to regulatory and operational risks.
Proportional regulation of financial organisations envisages their division within a sector into groups according to business models and accepted risks, as well as special regulatory requirements for each group. The participants deliberated about possible criteria for such division and the aspects of requirements for each group concerning equity capital, reporting and staff. A discussion on the challenges before the industry also took place.
The regulator offered to establish a working group consisting of SROs representatives which will summarise and analyse the submitted proposals. It is expected that the first results of the group's activities will be presented at the International Financial Congress in Saint-Petersburg in June 2016.
The implementation of proportional regulation is set out in the project 'Guidelines for the Development of the Russian Financial Market in 2016-2018'. This approach to the regulation of the activities of professional participants in the securities market will help to minimize costs of the sector, improving its resilience to regulatory and operational risks.
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