The Bank of Russia is set to change its approach to the inspection of market participants by canceling triennial inspections for certain supervised entities. These entities include credit institutions, non-governmental pension funds, large insurers, professional securities market participants, payment system operators, credit history bureaus, and trade organizers.
The regulator’s draft amendments to the instruction on the procedure for conducting these inspections are now available on the Bank of Russia’s website.
Future inspections will be conducted only if supervision is deemed necessary and will be based on an assessment of information about the activities of these entities. As a result, the Bank of Russia plans to fully transition to a risk-based model for inspection planning.
According to the regulator, these amendments aim to “reduce the administrative burden on good-faith and transparent market participants.”
