A New project of Russian Financial Market Development

18.04.2016 Our exchanger continues covering interesting news of the financial world. The bank of Russia has presented a new direction for development of the financial market to be put into life in the nearest three-four years. Now legislators are required to introduce their recommendations and remarks with reference to which the document will be finalized.
In case if the project is approved by the government, it will become a mandatory guideline. Whereby carrying out of the specified in the document recommendations is obligatory even for CO. This approach is implemented in Russia for the first time.
A project offering a new strategy was presented last Thursday in the parliament by S. Shevtsov, the First Deputy Chairman of the Central Bank of the RF. Work on the project began when the Bank of Russia performed functions of the regulatory authority, - he noted. The government institution urged participants to set down their requests to help the regulatory authority determine methods of resolving the situation. All requests are collected in a single project.
Most of these documents were included into the new project that provides specific effective measures for implementation of main provisions. It was reported earlier that from 233 requests sent by participants, for today only 70 are unresolved. All of them will be considered while working out a new strategy.
The project has been discussed with all major representatives of the financial market for a long time. Last year project’s full version was published for the first time. Moreover, the document was discussed in the government, which made a remark on lack of digital indicators required for estimating accomplishment of the project and the result of problem solving. The First Deputy Chairman of the Central Bank of the RF noted that qualitative indicators will be included in the basic document. It will be published this year.
The project contains detailed description of several strategies targeted at development of the financial market. Among the directions of development there are those oriented on promotion of financial literacy and protection of consumer rights.
This form of the project which shall be realized in the nearest several years is relatively new for Russia. According to experts, this experience might be successful. However, there were also many negative remarks concerning the project. The head of the Banking Association, Garegin Tosunyan, stated that it is inadmissible to use loan securities as an alternative for monetary financing. It was also noted that some urgent aspects are misses in the document. For example, guidance of forex and collecting markets. But at the same time the project attempts to extend authority of the Central Bank in the niche with weaker control of legislation (crowdfunding, etc). There were comments that the document does not mention possible development of investing in new projects and does not pays enough attention to the pension scheme.
When the Central Bank makes amendments to the document in compliance with remarks of lawmakers and experts, the document will have to pass ratification. Upon completing this stage it will become a mandatory guideline.
Implementation of all principles of the document will take around three years. The roadmap which is expected to be published this year will also point out specific actions. These actions shall be put into practice by both market participants and the nation’s leadership.