“The Government has had a debate on the megaregulator. We have agreed on an action plan. In 1H 2013 legislation will be drafted and passed to specify the financial regulation functions of the Central Bank. In 18-24 months after that, FFMS will be gradually integrated in the Bank of Russia”, said Siluanov.

“This process will be incremental, in order not to alter the CB process in a radical manner”, he explained.

Ultimately, the Central Bank will establish a designated committee, however in the initial 2H 2013 stage, the FFMS will form a regulatory division, supervised by the Deputy Chairman of the Bank of Russia.

The financial market megaregulator debate was initiated in August by First Deputy Prime Minister Igor Shuvalov at a meeting with financial authorities. Sources told Interfax that this was Shuvalov’s response to FFMS Head Dmitry Pankin’s request for additional financing and headcount for the service that had been delegated additional regulatory functions for credit cooperatives and microfinance. In early October President Putin called for expert debates and a quick decision. By the end of the month Prime Minister Dmitry Medvedev ordered the Government to analyze all possible megaregulator scenarios.

Financial markets megaregulator, Project Group №1, Dmitry Pankin