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Simplified procedure for securities market participants to receive additional licences

15 November 2022

The Bank of Russia introduces a simplified procedure that will enable professional securities market participants, management companies, credit institutions, and clearing houses to receive permits for additional activities in the securities market where their combination is allowed by law. The relevant regulation of the Bank of Russia has been registered by the Ministry of Justice and becomes effective on 1 April 2023.

To obtain an additional licence in the securities market (including an investment consulting licence), such organisations will only have to send an application and documents about their executives required for additional activities to the Bank of Russia through their online accounts. These organisations shall also conform to licence requirements and shall have complied with all orders or other enforcement documents issued to them, if any.

If an application is filled in correctly, the Bank of Russia will issue the licence and put the organisation on the single register of investment advisers no later than one business day after the receipt of the application. Previously, an applicant was to undergo a re‑audit. The new procedure will make it significantly easier for market participants to receive additional licences.

The Bank of Russia’s regulation also changes the procedure for licensing management companies, specialised depositories, and joint-stock investment funds. The information on issued licences will be included in the register (according to a similar procedure that is currently effective for professional securities markets). Instead of a licence in paper form, an applicant will receive an electronic extract from the relevant register.

The regulation also provides for a pre-licensing verification for applicants wishing to be licensed as a management company, a specialised depository, or a joint-stock investment fund.

Preview photo: Aleksandr Grechanyuk / Shutterstock / Fotodom