Self-regulation in ACCC market: system evolution
The Bank of Russia has entered data on two new self-regulatory organisations (SRO) of agricultural consumer credit cooperatives (ACCC) into the register of financial market self-regulatory organisations. Since the first ACCC SRO was added to the register this March, the number of self-regulatory organisations in the ACCC market has reached its maximum allowable level.
Pursuant to law, starting from 1 January 2020, all ACCCs operating in the financial market must be members of self-regulatory organisations. Should ACCCs fail to comply with this requirement, there will be grounds for the liquidation of those ACCCs by the courts, as required by the Bank of Russia. As of now, over 80% of the ACCCs operating in the financial market have joined SROs.
Self-regulatory organisations will develop SRO basic standards to be observed by all ACCCs working in the financial market. That said, the SRO basic standards should be a flexible mechanism to regulate market players’ operations, meeting their interests to the fullest extent possible and preventing unfair practices.
SROs will monitor whether their members comply with the sectoral laws and SRO basic standards, while the regulator will focus on supervising how efficiently SROs perform their control functions.
The objective of the ACCC market is to ensure the financial inclusion of agricultural producers and private farming households.