The financial info market in Russia

Since 1997 the Association of Russian Banks has been an associated member of the European Banking Federation.

6. Securities

a. News and Information

Rynok Tsennykh Bumag is a Russian-language new source focused on Russian securities. They have archives and some articles online.

CBonds is a major new source for those issuing or investing in bonds from the CIS.

MSCI provides indices for equity markets around the globe, including in Russia.

b. Regulatory Agencies

National Securities Market Association is an industry self-regulatory structure, apparently most focused on banks and state structures which issue securities.

National Association of Securities Market Participants (NAUFOR) is a Russian self-regulatory organization that unites professional securities market participants: brokers, dealers, trust managers and depositories.

National Association of Securities Market Participants (NAUFOR) is a Russian self-regulatory organization that unites professional securities market participants: brokers, dealers, trust managers and depositaries.

Association unites about 400 companies. NAUFOR’s offices are located in 14 major Russian cities.

NAUFOR’s status as an SRO is based on the Federal Law «On Securities Market» and a permission issued by the Federal Financial Markets Service (FFMS). According to the Law self-regulatory organization is a voluntary association of the professional securities market participants that operates on principles of a non-profit organization.

NAUFOR, according to the requirements of professional activities and operations on the securities market imposed by FFMS, sets mandatory rules of conduct for its members, standards of securities transactions and controls its observation.

NAUFOR is an affiliated member of IOSCO and a member of IOSCO SRO Consultative Committee.

NAUFOR’s mission is to improve securities regulation and promote fair and efficient market that benefit investors and intermediaries alike. With a mandate of its members, NAUFOR develops rules and standards for securities industry that support market confidence and integrity.

As a self-regulatory organization, NAUFOR is a key vehicle between federal regulation and industry that provides arbitration services for market participants as well as oversees their activities.

NAUFOR has outstanding 15-years experience of members' activities support, and professional growth of their staff. NAUFOR Membership allows not only to be aware of all financial market developments but also to participate in them directly.

The Professional Association of Registrars, Transfer Agents and Depositories (PARTAD) is a regulatory agency for registrars, depositories, and clearing organizations.

2. Analysis of financial information in Russia

When asked about the importance of certain types of financial information and the quality of that information, respondents stated that footnote disclosures are just as important as the balance sheet. Areas where there are large gaps between importance and quality are off-balance sheet assets and liabilities, extraordinary, unusual and non-recurring charges, and pensions and other retirement benefits.

Corporate balance sheets are seen as highly important, but need a boost in quality. Investment professionals note sizable gaps between the importance of even core financial statements and their quality. (Please see Table 1 below.)

Table 1

IMPORTANCE QUALITY CHANGE past 3 years (Based on 82 responses) Very or Extremely Important Good («B») or Excellent («A») Average («C») Poor («F») or below average («D») Improved some or a lot Deteriorated some or a lot Annual audited financial statements 82% 44% 41% 8% 31% 10% Income statement 87% 42% 41% 11% 35% 12% Balance sheet 90% 44% 41% 10% 29% 11% Cash flow statement 87% 44% 37% 13% 29% 11% Statement of shareholder’s equity 37% 29% 44% 13% 19% 12%

Asked about 15 additional sources of key financial information from public companies, investment professionals rated as top five:

1. Footnotes to the financial statements.

2. Interim financial statements.

3. Earnings releases.

4. Management’s Discussion and Analysis (MD&A).

5. Conference calls and face-to-face meetings.

Respondents were also asked to rate 33 specific types of information that may be found in the financial statements and related footnotes and disclosures. The top five:

1. Information about off-balance sheet assets or liabilities.

2. Explanation of extraordinary, unusual or non-recurring charges.

3. Information about pension and other retirement benefits.

4. Contingencies, litigation, exposure to legal risk, etc.

5. Tie between explanation of accounting principles applied and explanation of revenue recognition criteria.

BIBLIOGRAPHY

Financial Management Services Information:

http://www.financialbrowsers.com/

Financial Stability Board:

http://www.financialstabilityboard.org/