OREANDA-NEWS. The mega regulator's regulatory document sets forth the form, the deadlines and the procedure for pawnshops to provide data on their operations and their management bodies' personal composition.

The reporting should be submitted to the Bank of Russia every time quarter one, half-year and nine months are over; the reporting should be submitted two times within a calendar year. The first annual report to be submitted to the Bank of Russia includes the pawnshop's key data (the financial institution's name, OGRN, EGRUL, address, telephone and website), data on all subdivisions, accounts with credit institutions as well as data on entities acting as insurers of a borrower's pledged property. Additionally, the pawnshop's first report should inform the regulator of weighted-average effective interest rates of consumer loans.

The second report, to be submitted within 90 days after the end of a calendar year, shall include information on pawnshops business operations, including details of the principal, interest, and the amounts of borrowed funds. The same report shall incorporate data on the pawnshop-attracted monetary funds inclusive of those from the pawnshop founders (who are private persons) and data on insured pawnshop risks related to pledged assets. Attached to the report shall be the pawnshop's annual accounting statements.

'The new reporting format being enacted has been updated based on pawnshop market participants, it is going to be easier to administer, said Olga Goncharova, Director, Non-bank Financial Institutions' Statements Collection and Processing Department.

The new reporting form also implements the proportionality principle whereunder more requirements are set on big market players than smaller ones.

Bank of Russia Ordinance No. 3927-U, dated 30 December 2015, as published in the Bank of Russia Bulletin No. 20, dated 2 March 2016, details the procedure for compiling statements, including how to report on the personal composition of pawnshop management.

In its capacity as the mega regulator since late 2013, the Bank of Russia conducts monitoring and supervision of non-bank financial institutions inclusive of pawnshops.

In the course of 2015, following recurrent non-submission of operating reporting / personal composition of management data, as well as on the grounds of noncompliance, the mega regulator initiated liquidation proceedings against as many as 784 pawnshops.

Also, based on the Bank of Russia's requests, as many as 366 pawnshops, which are in fact non-operational, are expected to be struck off the Unified State Register of Legal Entities (EGRUL). Supervisory measures are currently under way against 1,183 pawnshops, which include identification of their current address (location).

In 2015, the Bank of Russia had to take action against 85% of pawnshops which recurrently failed to submit the required reporting to the Bank of Russia and failed to comply with the mega regulator's requirements.

Tentative findings of the supervisory measures suggest that the share of complying pawnshops, which are required to submit reporting, grew from 39% to 52% against 2015 Q1.