FAS HELD EXPERT COUNCIL FOR DEVELOPING COMPETITION ON THE MARKET OF SECURITY SERVCIES

Participants of the security services market discussed improvement of state regulation of security activities and the key performance aspects of the market of private services

The Antimonopoly Service held the first meeting of FAS Expert Council for developing competition on the markets of security service, bringing together representatives of federal bodies, sectoral association and the business community.

Opening the event, Head of FAS Financial Control Department Vladimir Mishelovin described the system of FAS Expert Councils, which function is to devise recommendations on controversial issues.

Talking the market of security services, Vladimir Mishelovin emphasized its specifics: “Legislation is not so simple; the sector is regulated by several acts. The objective of the today’s Expert Council is, in particular, to try to find a balance of interest between all participants of the markets of security services, since here, at FAS, we typically raise the issues of competition development”.

Deputy Head of FAS Financial Control DepartmentNatalia Isaeva underlined: “FAS hopes that the Expert Council will be come useful and valuable for the entire business community on the market of security services”.

She informed the audience about signing an agreement on cooperation between the Antimonopoly Service and Rosgvardia [the Federal Service of National Guard of the Russian Federation].

The Expert Council discussed improvement of state regulation of security services as the basis for developing a favourable competitive climate in Russia. For example, a question was raised on devising a single regulatory act to regulate security activities. Still there is no law defining a concept of security activities. Also a proposal was put forward to formalize such concepts in the draft law as state security activities, private security activities, participants of security activities, security and protectability of objects under protection. It was also suggested to introduce a concept of “owner”.

Other issues highlighted by market participants concerned absence of unified approaches to defining legal categorization of departmental security subdivisions of federal authorities, and a lot of participants of security activities that have different statuses.

Performance of the market of private security services generated a vivid discussion; for example, it relates to procurement of such services. A lot of complaints concern actions of customers as well as executors. For instance, such problems were highlighted as use of incorrect data on material resources in auction documentation by procurement participants, including special characteristics in tender documents, damping, reducing the initial contract price by customers as well as unfair market participants, failure to include unfair suppliers in the Register of Unfair Suppliers, failure by large companies to observe in-house procurement provisions, etc.

Anton Seleznyov, Head of the Unit for Law-Making Interaction with Territorial Bodies, of FAS Department for Public Procurement Control, answered questions from the audience about controversial moments in procurement of security services that market players face.

The attendees also highlighted the importance of developing mechanisms for supporting bona fide provision of services by private security companies.

An idea was put forward to form a Working Group at the Expert Council to promptly discuss and elaborate proposals on creating competitive conditions for doing business in this field.

Finally, all members of the Expert Council unanimously emphasized the importance of the event and their readiness to participate in the following sessions as the Expert Council offers a constructive dialogue when all market participants can devise efficient decisions in the part of improving sectoral regulation and competition development.