FAS is for a leasing reform
FAS representatives discussed their support of the leasing reform at a workshop on “Pressing issues of reforming the leasing sector”
Deputy Head of FAS Department for Control over Financial Markets, Alexander Razin, and Head of the Unit for Stock Markets, Private Pension Funds and Other Financial Services, Kirill Pruntov, took part in a workshop on “Pressing issues of reforming the leasing sector” on 8 August 2017.
Attendees also included representatives of the Bank of Russia, participants of the leasing market, members of unions and associations.
A special block at the workshop focused on antimonopoly regulation on the leasing market and FAS expert examination of the amendments to the legislation.
Alexander Razin discussed specifics of antimonopoly regulation of leasing services and related concerns. The speaker pointed out: “Be it economic concentration or work with petitions on violating the antimonopoly law, We have frequently experienced difficulties associated, first of all, with analysis of the state of competition on the leasing market and determining the dominant position of economic entities. It is determined, first of all, by absence of clear criteria of leasing operations and, as a consequence, complexity of defining market participants”.
Alexander Razin emphasized that, in view of the above, the planned reform will help, in particular, systematize the leasing market and have a positive impact upon efficiency of antimonopoly control on the market.
He explained: “Naturally, the most important question for FAS was whether it can lead to restricting competition, adversely affecting the market, excessive barriers that limit real participants in their possibilities of being present on the market. Therefore, FAS analyzed the market of easing services through a prism of the planned changes to the law and possible consequences for the market. Our findings have not showed any possible adverse consequences for the state of competition on the leasing market”.
Kirill Pruntov outlined in detail a FAS survey designed to study the current situation on the leasing market, and potential impact of the reform upon competition on the market. He quoted data on questioning more than 2,500 companies concluding leasing deals in the Russian Federation. The FAS representative gave examples of extremely negative scenarios for events after changes will be made to the leasing law and explained that even in this case the concentration on the market will change insignificantly and there will be no adverse influence upon the state of competition.
The basic novelties of the reform of the market of leasing services in the coming years will be self-regulatory organizations, companies obtaining the status of non-bank institutions, creating the state register of leasing companies, improving regulatory framework, a gradual transition of companies to IFRS reporting. There will be a transitional period for leasing companies adjusting their own funds to the specified minimum, i.e.: balance sheet asset 500 million RUB and more – 30 million RUB from 01.01.2018, and from 01.01.2019 – 50 million RUB; balance sheet asset below 500 million RUB – 10 million RUB from 01.01.2018, and from 01.01.2019 – 15 million RUB.