Russia to undergo G20 audit for compliance with international financial market regulations in 2011
MOSCOW. April 7 (Interfax) - In the framework of a G20 plan, Russia will undergo an audit in 2011 for its regulation and monitoring of financial markets, Deputy Finance Minister Dmitry Pankin said at the MICEX forum on Wednesday.
"We are on the 2011 schedule, which means that we will be checked in full measure and in all parameters - the type of internal standards for companies, the type of standards of regulation and how the monitoring system has been developed in all areas," he said.
Pankin said that "intensive development of new operational standards for operations on all financial markets [was underway] primarily on the banking, securities and insurance markets." He added that further development was progressing for unified standards in accounting and auditing.
"In the framework of the G20, it is proposed that these standards will be introduced in all countries and an auditing mechanism will be created for observance of this standards," Pankin said. He added that the first mission of volunteers would appear next year to carry out the audit.
Pankin said that if Russia's standards for the financial market do not fall in line with international standards, the auditor would, in the first stage, direct attention to the existing problems and request a period of time for correcting these issues. "If it [a divergence] is not corrected a sanction entry [for the violating country] will be entered on a grey and black list," he said. Pankin added that this mechanism has yet to be entirely set in motion and that "it is hard to say whether it will work as proposed or the international community would be unable to create an active form of monitoring and control for all financial markets."
He stressed that Russia is still proceeding on the assumption that this mechanism is in operation. "We will have to complete development of standards in financial regulations and monitoring," Pankin said.