FAS RUSSIA AND BANK OF RUSSIA PAY ATTENTION TO THE NEED OF COMPLIANCE WITH PROFESSIONAL ETHICS

In order to implement the "road map" for the development of competition[1], the regulators issued a joint letter on the professional ethics of certain categories of specialists of financial organizations[2]

In order to ensure ethical and good-faith behavior of financial market specialists, as well as information transparency of the activities of financial market participants, regulators recommend approving the code of ethics, information policy, conflict of interest management policy or other document regulating the issues of good-faith behavior of their employees, and monitoring their implementation on a regular basis.

In a joint letter, the FAS Russia and the Bank of Russia note that the harmonious development of the financial market is impossible without creating a trusting environment between consumers and financial service providers, whose relationships, due to the risks associated with activities in the financial market, are based, inter alia, on the trust of consumers of financial services to financial organizations.

An essential element of the formation of such a trusting environment is to improve the professional ethics of financial market specialists.

This implies not only compliance with the rules of corporate culture by such specialists, but also adherence to the principles of good behavior, including, inter alia, due care and prudence in the implementation or offer of financial services and financial instruments.

That is why the FAS Russia and the Bank of Russia recommend that financial market participants, in addition to meeting the mandatory requirements established by the legislation of the Russian Federation, pay special attention to additional measures to develop the professional ethics of their employees. This applies primarily to persons who publicly disseminate information that can influence the client's investment decision.

"Due to the fact that the financial market is characterized by a special sensitivity to various kinds of negative information regarding its participants, its dissemination can cause an outflow of customers from organizations, provoke a deterioration of their financial situation and the emergence of instability in the financial market as a whole," Andrey Kashevarov, Deputy Head of the FAS Russia said.

"In order to ensure healthy competition in the information space, our employees constantly monitor and analyze publications in the media, including for compliance with antimonopoly legislation, since it can be the basis for conducting antimonopoly investigations," he added.

[1] Paragraph 27 of Section XIV of the "Financial markets" of the Action Plan (road map) for the development of competition in sectors of the Russian economy and the transition of certain spheres of natural monopolies as a natural monopoly to the competitive market to 2018 - 2020, approved by decree of the Government of the Russian Federation of 16.08.2018 № 1697-p;

[2] Joint letter of the FAS Russia No. AK/114267/20 and the Bank of Russia No. IN-06-52/182 of 25.12.2020.