Russian Central Bank to create financial market service

The Board of Directors of the Russian Central Bank at its meeting on August 9 made the decision to create a service for financial markets. The new service, to be created within the Bank’s central office, will become operational from September 1 simultaneously with the abolition of the Federal Service for Financial Markets. The Central Bank will therefore assume additional powers and functions to regulate, control and supervise financial markets. The service for financial markets will be tasked with developing the financial market; ensuring its stability, including timely detection and prevention of crises; analysing the state of and prospects for financial markets with regard to non-lending institutions; and regulating, controlling and overseeing non-lending financial organisations. The new service will also protect the rights and legitimate interests of shareholders and investors in financial markets, insurers, insured persons and beneficiaries, as well as depositors and private pension plan participants. In addition, it will oversee compliance with Russian legislation prohibiting unlawful use of insider information and market manipulation.