Common financial market to be set up within United Economic Space by 2020
ALMATY. March 14 (Interfax) - The creation of an integrated financial market within the Single Economic Space of Kazakhstan, Russia and Belarus is planned for 2020, said Eurasian Economic Commission Minister for Economy and Financial Policy Timur Suleimenov.
"2020 is the year when, based on current agreements, we can come up with the common financial market with mutually recognized licenses and other permits and when market players' non-discriminatory access to each other's market will be ensured," Suleimenov told the 7th Kazakhstan financial forum on Thursday in Almaty.
Suleimenov said that the Eurasian Economic Commission and representatives from the three Single Economic Space member countries were currently working out an agreement on financial market activity requirements, which will provide a basis for harmonizing national legislation of the member countries.
Integration of the Single Economic Space member countries' financial markets and legislation harmonization will envisage three stages under this agreement. Stage 1 (2015-2016) is the harmonization of conceptual structures, unified requirements for the procedure and terms of creation of financial organizations, requirements for staff job skills in financial organizations. "In addition, the three Single Economic Space member countries will have to determine a single regulator by 2015 or hold three regulators subject to the same regulations," said Suleimenov.
Stage 2 (by December 31, 2017) will envisage harmonization of legislation on issuing, revoking and suspending licenses and establishing standards for mutual recognition of licenses, maximum approximation of prudential requirements, harmonization of the procedure and terms of closing down and reorganization of financial organizations, streamlining and approximating requirements aimed at combating the legalization of illegally obtained revenues.
Stage 3 (by 2020) - completion of the harmonization of legislative standards aimed at regulating financial supervision. "This would be the final point to allow us to say that the rules in our financial markets are one and the same," said Suleimenov.