Financial Sector Overview slide image

Financial Sector Overview

Bank of Russia FINANCIAL SECTOR OVERVIEW The Central Bank of the Russian Federation 44 44 CORPORATE GOVERNANCE New corporate governance standards reflect best international practices Corporate governance JSC Law amended July 2018: ✓ Strengthening the role of the Board of Directors in JSC ✓ Mandatory risk-management, internal control in public companies Mandatory audit committees and internal audit functions in public companies (starting July 2020) Disclosure reform Listing reform on Moscow Exchange Simplified listing structure: 2 quotation lists and 1 non- quotation list instead of a 6-tier system Stricter corporate governance criteria for inclusion in the top-tier list Stricter requirements for Directors to be considered independent Next stage 2019 Only ratings by approved Russian rating agencies will be considered valid for listing requirements for Russian issuers' bonds ✓ Corporate actions reform to Information on corporate actions cascaded shareholders from issuer through CSD and nominees E-proxy voting and E-voting platform for shareholders has been developed A number of Russian companies have already implemented an online voting system in 2017 ✓ E-voting for bondholders has been implemented and successfully tested Securities New types of securities - structured bonds, perpetual bonds, priority dividends non-voting preferred shares Blockchain technology NSD used a blockchain-based settlement platform to complete placement of an inaugural a RUB 500 mln bond issue in 2017 In 2018 first Russian bonds via smart contracts were issued for a total sum of RUB 750 mln CBR corporate governance report: annual monitoring of corporate governance practice and publication of the report on the CBR official site (only in Russian)
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