OREANDA-NEWS. The approaches to regulation of registrars' and depositaries' operations are set to be synchronised.

Until now, the processes related to the regulation of shareholder register maintenance were governed by both federal laws and individual clauses in the regulations issued by the Federal Securities Commission and the Federal Financial Markets Service. Such fragmented legislation carried the potential of some legal risks for market participants.

These risks are supposed to go once the regulatory act becomes effective.

This principle is reflected in the draft Bank of Russia Regulation 'On Requirements for Processes Related to Shareholder Register Maintenance', available on the Bank of Russia website.

The new draft statutory act reduces market participants' regulatory load: several dated areas of regulation are made redundant.

Additionally, the new document's procedure and timeline for handover of the securities register, applicable once the contract for its maintenance has expired, has been updated to reflect the standing market practice.

These legal developments are meant to add value to the Bank of Russia's supervisory operations, as long as the enshrined regulatory continuity creates no additional burden for the financial sector.