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EAEU Countries Discussed Creation of Common Financial Market and Improvement of Union Law on Finance
The Advisory Committee on Financial Markets under the Board of the Eurasian Economic Commission discussed approaches to the creation of a common financial market and harmonization of legislation in the field of financial services. The meeting was held in Moscow at the EEC headquarters under the chairmanship of Bakhyt Sultanov, Minister in charge of Economy and Financial Policy of the Commission.
The concept of creating the EAEU common financial market provides for the introduction of a standardized license mechanism, which will ensure mutual access to the markets for financial service providers through subsidiaries and their commercial presence. A standardized license is a special permit issued by the financial regulator of the parent organization's home country.
According to Bakhyt Sultanov, this document is aimed at enabling mutual recognition of licenses for activities in the banking and insurance sector. In addition, it is intended to improve the availability, quality and diversity of financial services for legal entities and natural persons, as well as to develop competition in the financial market.
"The agreement defines the procedure and conditions for issuing a standardized license, requirements to the applicant and the licensee, the procedure for establishing or acquiring a subsidiary," the EEC Minister stressed.
The draft Agreement establishes mutual admission of financial service providers, including banks and insurance companies, to national financial markets, which will simplify the process of establishing or acquiring a legal entity in the form of a subsidiary.
In addition, the members of the Advisory Committee considered the draft recommendation of the EEC Council on agreed proposals to harmonize the legislation of the Union states in terms of basic concepts and definitions in the field of securities market regulation and establishing requirements to market intermediaries (brokers).
The meeting participants were informed about the work on draft recommendations of the Commission's Council aimed at harmonizing the legislation regulating admission of banks and insurance companies to the common financial market, establishing requirements to market intermediaries (dealers), developing the infrastructure for exchange trading in securities, improving measures to combat money laundering.
