MIFC: Key Facts

A source of basic facts about the International Financial Centre in Moscow

Task Assignments

06.12.2011 / Moscow

Task Assignments given by the President of the Russian Federation following the MIFC International Advisory Board session
on 28 October 2011.

MIFC Events

24.03.2017

10th Russian-British MIFC Joint Liaison Group meeting

Events Calendar

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Media Coverage

29.01.2014 / Interfax

Russia #3 Worldwide in Foreign Direct Investment

FDI in developing and transitional economies hit record highs in 2013, according to United Nations Conference on Trade and Development (UNCTAD) report.

06.04.2013 / Kommersant

Central Bank Builds Financial Center

FFMS merger with the CB will significantly improve regulation – as expected by reform participants and instigators alike. Yesterday the Bank of Russia, FFMS and Minfin reps made a public presentation of the financial megaregulator, as the process has entered implementation stage. In the meantime, MIFC mastermind Alexander Voloshin sees the future unification of oversight as a key milestone for Moscow as International Financial Center.

29.01.2013 / Interfax

MIFC Location to be Determined by Workgroup

Russian Prime Minister Dmitry Medvedev is planning to establish a workgroup to determine the location of Moscow International Financial Center (MIFC) infrastructure.

Our progress / Quotes

24.06.2016 00:00 / Elvira Nabiullina

Elvira NabiullinaBanks and non-banks will increasingly share their scope of services Three years ago, the Bank of Russia became the financial market megaregulator, assuming all regulatory and oversight functions for the financial industry. Our task was to come up with balanced approaches to non-banking regulation, especially where statutory gaps exist. In banking regulation we have been continually pursuing the implementation of international standards.

08.09.2015 14:10 / Olga Goncharova

Olga GoncharovaFinnopolis: Financial Technologies to Drive Development On 17 September, the inaugural financial innovation forum named Finnopolis 2015 will open in Kazan. The forum is a first for Tatarstan and in many ways, for the entire financial and banking sector.

27.08.2015 15:08 / Alexey Timofeev

Alexey TimofeevNew Role for SROs: a well-planned revolution The new Financial Market SRO Act, signed by the President, is a revolution in Russian financial market regulation and oversight.

28.11.2014 15:03 / Elvira Nabiullina

Elvira NabiullinaOUR POLICY GOALS MUST BE CLEAR A little over a year ago, the Bank of Russia became megaregulator, spreading its control and oversight functions to other financial market segments besides banking. It’s a mass of work, tens of thousands companies: 572 in insurance, 1790 in collective investment, almost 4.5 thousand in microfinance, some 8 thousand pawn shops et cetera. Compare this with a mere 842 companies in banking services, 790 of which are banks.

29.04.2014 15:56 / Denis Spirin

Denis SpirinThe Ideal Model: Why We Need the New Corporate Code The new Corporate Governance Code, passed by the Government and Russia’s financial market megaregulator, the Bank of Russia, deserves to be the news of the day. Sceptics may object that the Code is merely a recommendation, and the best practice of corporate governance contained therein is detached from reality.

09.04.2014 14:06 / Anatoly Karachinsky

Anatoly KarachinskyIDENTIFYING PERFORMANCE RESERVES OF FINANCIAL MARKETS Russia’s financial market produces a staggering billion-plus paper documents yearly. Every individual has to open a bank account, buy insurance, pay fines, taxes, and housing bills. Most people do it by signing papers and wasting time in queues. Most companies have to keep paper copies of their official reports and electronic transactions.

News from 
till 

New Role for SROs: a well-planned revolution

27.08.2015 15:08 / Alexey Timofeev

The new Financial Market SRO Act, signed by the President, is a revolution in Russian financial market regulation and oversight.

The law introduces two key elements in financial market infrastructure: mandatory membership for financial market participants in at least one SRO and joint regulation and oversight by the Bank of Russia and the SROs.

This approach resembles the US and Japanese model. Remarkably, in many countries SRO status implies different functions. In our case, the law follows the US and Japanese models exactly, with mandatory SRO membership as a prerequisite for maximum impact of SRO as co-regulator.

According to the Act, each of the 16 professional market segments (brokers, dealers, asset managers, depositaties, registrars, specialized depositaries, non-state pension funds (NPFs), share investment funds and their management companies, insurers, mutual insurance societies, insurance brokers, microfinance companies,

consumer credit co-operatives, building societies, farming credit cooperatives and forex dealers) can have up to three SROs, which factors in certain competition. In this case, there is a possibility of regulatory arbitration, however, the law mitigates the risk: it is stipulated that basic standards, set by the Bank of Russia, are to be drafted by all SROs in the segment in a joint effort with the Bank of Russia. Otherwise, SROs retain freedom of regulation.

Generally, the law wraps up the regulatory reform, commenced with the arrival of the financial markets megaregulator.

Primarily, SRO become institutions that can focus on regulation and development of separate market segments – securities market, collective investment, NPFs, insurance etc., in contrast with the Central Bank’s superpowers as a megaregulator which potentially limit the amount of CB’s attention to each segment.

Secondly and most importantly, the new Act improves regulation and oversight quality in the financial market, complementing state regulation with more flexible and dynamic self-regulation, compensating the fundamental flaw of Russian lawmaking – “what is not expressly allowed, is forbidden”. The point is that SROs are more adapted to principle-based regulation than a state body, which means a more abstract, ethically driven approach, with more freedom and opportunities for financial engineering, which is pivotal for an innovative and dynamic financial market.

In-depth debate, which preceded the passing of the law, enabled us to fine-tune the balance of powers and responsibilities in the new regulation framework.

The Act boosts the role of SROs in the financial market without diminishing the influence of the Bank of Russia. On the one hand, SROs and their regulatory process are supervised by the Bank of Russia, while on the other hand, SRO regulation is not limited, allowing SROs to compete with the Bank of Russia.

What are the implications of all this? SROs may take upon themselves the regulation of the widest scope of segments, and if they do well, the Bank of Russia need not interfere. Conversely, if SRO regulation fails to perform as expected, the Bank of Russia can always pass a regulation. This obviously creates a strong motive to build quality self-regulation. At the end of the day, this regulatory competition is the best way to arrive at an effective balance of power between the Bank of Russia and the SROs.

Finally, SROs accept responsibility for the industry compliance with regulations and their own standards. The law provides SRO oversight coordination with the Bank of Russia, extending the oversight scope and improving its quality by combining state and SRO oversight methods. Despite the fact that the new self-regulation model is yet to be implemented, SRO oversight benefits are already clear. SROs can apply abstract principles in a particular case, and is more focused on rectifying issues than a penalty-slapping state body.

28.11.2014 15:03 / Elvira Nabiullina

OUR POLICY GOALS MUST BE CLEAR A little over a year ago, the Bank of Russia became megaregulator, spreading its control and oversight functions to other financial market segments besides banking. It’s a mass of work, tens of thousands companies: 572 in insurance, 1790 in collective investment, almost 4.5 thousand in microfinance, some 8 thousand pawn shops et cetera. Compare this with a mere 842 companies in banking services, 790 of which are banks.

29.04.2014 15:56 / Denis Spirin

The Ideal Model: Why We Need the New Corporate Code The new Corporate Governance Code, passed by the Government and Russia’s financial market megaregulator, the Bank of Russia, deserves to be the news of the day. Sceptics may object that the Code is merely a recommendation, and the best practice of corporate governance contained therein is detached from reality.

09.04.2014 14:06 / Anatoly Karachinsky

IDENTIFYING PERFORMANCE RESERVES OF FINANCIAL MARKETS Russia’s financial market produces a staggering billion-plus paper documents yearly. Every individual has to open a bank account, buy insurance, pay fines, taxes, and housing bills. Most people do it by signing papers and wasting time in queues. Most companies have to keep paper copies of their official reports and electronic transactions.

25.02.2014 13:30 / Anna Kuznetsova

New listing rules will boost transparency, strengthen corporate governance Moscow Exchange is currently reforming its listing rules, a process that will strengthen the market for both issuers of stocks and bonds, while providing domestic investors with an opportunity to diversify their investment portfolios.

28.01.2014 15:10 / Ksenia Yudaeva

Reserve Currencies and the Role of the Ruble The Bank of Russia policy focus has shifted to inflation targeting, sparking a debate on intervention practice and prompting us to reconsider the prospects of the Ruble as a reserve currency.

14.10.2013 13:35 / Alexei Kuznetsov

Taxes and Russian IFC’s Competitive Edge Taxation should not hinder financial market development. This is the motto of MIFC Taskforce’s Tax Project Group that drafts tax reform proposals.

02.10.2013 12:00 / Sergei Shvetsov

The Regulator Needs to Hear the Market A month has passed since the financial markets megaregulator was established. We have solved the key task for the transitional period of FFMS-Bank of Russia merger — maintaining continuity of service, essential for the functioning of the market. We have now initiated systematic analysis of current affairs — from the regulation, control and oversight perspective — in each financial market segment.

11.09.2013 13:45 / Alexander Voloshin

Reforms that benefit the market More than three years have elapsed since Moscow International Financial Center Taskforce was established. We have managed to achieve various degrees of progress in all key performance areas of Moscow’s development as an international financial center.

11.09.2013 12:15 / Igor Jurgens

Self-regulation is balancing rights and responsibility The adopted financial market self-regulation law and the implementation of related practices is an evolutionary step for production forces, to borrow a scientific term. From a common perspective, self-regulation is an absolute must, with the increasing importance of roles played by civil society and the business community. The pendulum has swung from unchecked democracy of the early 90’s to equal partnership of the 00’s to state supremacy. The pendulum must be kept on track: the state is unfit to handle all regulatory functions without considering the interests and healthy intentions of the business community.

11.09.2013 11:59 / Oleg Vyugin

On megaregulator priorities The key starting objective for the new regulator is to reconsider the paradigm of financial regulation based on the prospective advantages of the ongoing megaregulator project. We must aim to minimize the negative impact of structural overhaul of the regulation system.

11.09.2013 11:45 / Alexey Timofeev

The market anticipates Central Bank’s attention to business specifics The establishment of a Central Bank-based megaregulator is a pivotal change in the entire financial market regulation and oversight system. The reform is one of the key phases of system development. An outstanding contribution to the financial market has been made by the Central Bank predecessors – FFMS, FCSM, Minfin, the Russian Insurance Supervision Service and the Labor Ministry, and it would be inappropriate to call the new reform a clean-up of their failed attempts. Using failures as a pretext to delegate financial market regulation functions means going back to square one, a way to justify any regulatory measures that would appear an improvement by mere contrast. This is misleading, since the financial market that has taken shape in Russia is far from its nascent stage.