Preliminary selection of auditors to be entrusted by the Bank of Russia to conduct inspections of non-bank financial institutions

According to Clauses 1.1 and 1.3 of Bank of Russia Regulation No. 426-P, dated 7 August 2014, ‘On the Procedure for Selecting Auditors to Conduct Inspections of Non-bank Financial Institutions on the Instruction of the Bank of Russia’, registered by the Ministry of Justice of the Russian Federation on 25 August 2014, Registration No. 33834 (Bank of Russia Bulletin No. 79, dated 5 September 2014) (hereinafter, Bank of Russia Regulation No. 426-P), the Bank of Russia announces the start of preliminary selection of auditors to be entrusted by the Bank of Russia to conduct inspections of non-bank financial institutions.

An audit company complying with the following criteria set forth by Clause 2.1 of Bank of Russia Regulation No. 426-P shall be deemed eligible to participate in preliminary selection:

• it is incorporated under Russian law;
• it is a member of a self-regulatory organisation of auditors according to the requirements of Article 3 of Federal Law No. 307-FZ, dated 30 December 2008, ‘On Audit Activities’ (hereinafter, the Federal Law ‘On Audit Activities’);
• it has an unblemished business reputation;
• this audit company conducted audit inspections of non-bank financial institutions within five years preceding the date of signature by its head of the application to take part in preliminary selection;
• within three years preceding the date of signature by the audit company’s head of the application to take part in preliminary selection, the record of the company did not contain any instances of disciplinary or other measures applied against it according to Parts 1 and 6 of Article 20 of the Federal Law ‘On Audit Activities’ (excluding disciplinary or other measures stipulated by Clauses 1-3 and 6 of Part 1 and Clauses 1 and 2 of Part 6 of Article 20 of the Federal Law ‘On Audit Activities’ in case of the timely and full execution by the auditor of the decision on the application of respective disciplinary or other measures against it);
• within three years preceding the date of signature by the audit company’s head of the application to take part in preliminary selection, the record of the company did not contain any instances of effective court rulings on satisfying customer claims against the audit company (auditors which are employees of such audit company) filed in connection with auditing and (or) providing services related to auditing specified in Clauses 1-7 of Part 7 of Article 1 of the Federal Law ‘On Audit Activities’;
• the company insures the liability for breaching an auditing service agreement and (or) for damaging a third-party’s property as a result of auditing.

The application to take part in preliminary selection shall be drawn up according to the form of Annex 1 to Bank of Russia Regulation No. 426-P with due regard to the requirements stipulated by Clauses 1.6 and 2.3 of Bank of Russia Regulation No. 426-P and shall be submitted as set forth by Clause 2.4 of Bank of Russia Regulation No. 426-P within 15 business days after this information notice is posted on the Bank of Russia official website.

According to paragraph six of Clause 1.6 of Bank of Russia Regulation No. 426-P, applications to take part in preliminary selection in hard copy or in electronic form (on detachable machine-readable data storage devices) shall be forwarded by audit companies to the Bank of Russia at: 12 Neglinnaya Street, 107016 Moscow (with inscriptions ‘Submitted according to Bank of Russia Regulation No. 426-P, dated 7 August 2014, ‘On the Procedure for Selecting Auditors to Conduct Inspections of Non-bank Financial Institutions on the Instruction of the Bank of Russia’, ‘For preliminary selection’) by registered mail with receipt notification or they shall be delivered by courier service to the Document Dispatch Division of the Bank of Russia Administrative Department (at: 3 Sandunovsky Lane, Moscow; from 9.00am to 5.30pm on Monday through Thursday, or by 4.15pm on Friday, lunch from 0.00pm to 1.00pm) in a sealed envelope.

The envelope shall bear the full and short official name (if any) of an auditor.

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