How efficient today is the law controlling the activity of self-regulatory organizations? How experts estimate the opportunity of transferring some state authority to SROs? The participants of thematic discussion tried to find answers to these questions at the VII St. Petersburg International Legal Forum.
Vladimir Chistyukhin, Deputy Governor of the Bank of Russia, was the moderator of the discussion, which also included Yuri Bugaev, Chairman of the Council of the Association of Professional Insurance Brokers, Anatoly Kozlachkov, Partner at Law Centre 'Legal Advice and Consulting', Mikhail Malinovskiy, General Director of the LECAP Law Firm, Member of the Committee on Legislation in the Financial Market of the National Financial Association of the Russian Federation, and Konstantin Ugryumov, President of National Association of Non-State Pension Funds.
Opening the discussion, Deputy Governor of the Bank of Russia Mr. Chistyukhin outlined three main features that form self-regulation system in the financial market. Ha said, ‘First thing here is mandatory participation. If financial market has an SPO, all market players in the segment should join it. Second point is that SPOs got an opportunity to issue the so-called basic standards compulsory for all SPO members. This results in quasiregulation. Third is that an SPO gets much more rights to make participants comply with these basic standards and other rules. The Central Bank gets an opportunity to supervise the SPOs.’ Then Mr. Chistyukhin asked the participants to comment on the law on SPOs, adopted in 2015.
Anatoly Kozlachkov, Partner at Law Centre 'Legal Advice and Consulting', drew the attention of the audience to the fact that any law is the product of public compromise. Despite the fact that he took part in the discussion of the bill, he finds it imperfect. The lawyer noted, ‘Summing up, I think that the drawback of the law is that we tried to combine a restive steed and a timid deer, that is, public and civil regulation. Thus we actually created two legal sources. The first source is the acts of the Central Bank, the second, acts of a self-regulatory organization.’ He also added that the law acts during a short term and all problems that arise in the course of work should eventually be resolved.
Konstantin Ugryumov, President of National Association of Non-State Pension Funds, mostly agreed with his colleague. He concluded, ‘The majority of SPOs today are still lobbyists rather than organizations capable to clearly formulate unified strict requirements for their members and to control them, undertaking the function of the state.’
Talking about the activity of SPOs in Russia and the delegation of authority, Yuri Bugaev, Chairman of the Council of the Association of Professional Insurance Brokers, noted, ‘We don’t want SPOs to become a kind of duplicating step. At the same time, if we assume authority in some fields, we are neither technically nor organizationally ready and we lack human resources. Maybe the situation will improve over time, but today it is hard to say that we are fully prepared for that.’
During the discussion the experts also considered the SPO standards as a legal source and dwelled upon the topic of self-regulation if the bank sector.
Summing up, moderator Vladimir Chistyukhin noted that even today a number of potential serious legal problems are obvious in the work of SPOs, but the situation can be considered as a challenge and reason for the development of the industry.