Expert council deliberate on Russia Forex law

28 August,, Lagos – As the date for commencement of the implementation of the new Russia Forex law draws closer, the first meeting of the Expert Council on OTC financial activities and protecting the rights of individual investors in the Financial Markets Committee of the State Duma has been held. The purpose of this meeting was to discuss further on the established rules of operations of members of the Forex community; brokers and traders alike. As well as the role of the regulatory bodies like self regulatory body (CRFIN), Central Bank, Ministry of Finance, the Deposit Insurance Agency.

The Expert Council was established in June 2015. This committee is a permanent advisory body to the Board and provides assistance to the latter in the drafting of federal laws in the State Duma for consideration. The competence of the board includes the review and evaluation of proposals to improve the legislation. It also has a responsibility to ensure proper legal framework of the forex market dealers and securities. Chairman of the Board of SRO TSRFIN, Vadim Vinogradov and deputy chairman of SRO TSRFIN Eugene Masharov part of the body.

The Expert Council meeting on Russia’s Forex law held on August 26, was attended by representatives of the Central Bank, Ministry of Finance, the Deposit Insurance Agency, SRO TSRFIN, ISMM. Amongst other things, they deliberated upon the rules for the establishment of a legislative process for obtaining the status of a self-regulatory organization (SRO) by interested bodies. As part of the agenda, it was also dealt with the examination of the legal aspects of supervision of securities market participants from the Central Bank of the Russian Federation, the Ministry of Finance and the Federal Antimonopoly Service.

About a month back, the Bank of Russia published a draft normative act as regards the establishment of a compensation fund as a contingency in the event of bankruptcy of licensed FX brokers. Similar to other forex regulators of its kind operate, all Forex brokers in Russia will be under the obligation of membership to a Forex self-regulatory organization (SRO) and this organization must set up a Compensation Fund. Membership will be made compulsory with an entry fee of RUB 2 million ($35,629), a refusal to duly adhere will result in license revocation by the authorities.

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