First self-regulatory organisations appear in financial market

On 10 March 2016 the Bank of Russia took a decision to include NAUFOR (National Association of Stock Market Participants), PARTAD (Professional Association of Registrars, Transfer Agents and Depositories), NFA (National Securities Market Association), NAPF (National Association of Pension Funds), NLMC (National League of Management Companies), SRO MiR (Self-regulatory Organisation Microfinance and Development) and SRO Edinstvo (Self-regulatory Organisation Edinstvo) in a single register of self-regulatory organisations (SROs) in the financial market and admitted them to act in this capacity.

Financial institutions are obliged to join one of the SROs doing business in the respective financial market within 180 days after a non-profit organisation has been granted the status of a financial institution.

Compulsory membership of financial institutions in a SRO will further improve the quality of services and protection of investors’ rights. For instance, the self-regulatory organisations shall be bound to issue basic standards in terms of protection of the rights and interests of financial services consumers and supervise compliance with the said standards by SRO members.

SRO status shall be assigned in compliance with Federal Law No. 223-FZ, dated 13 July 2015, ‘On Self-regulatory Organisations in the Financial Market and Amending Articles 2 and 6 of the Federal Law ‘On Amending Certain Laws of the Russian Federation’, which is in effect from 11 January 2016. The non-profit organisations, which have acted for no less than a year as a self-regulatory organisation by the date of its entry into force shall be bound to obtain a SRO status in the financial market within a period of two months. Organisations, which have failed to obtain such status, shall not be entitled to use this term in their names and act in the capacity of a SRO.

The SRO system development in the financial market is intended to assist in its efficient operation, maintaining stability and further improvement.