First Special Depository’s Rules on Relations with Insurers is Registered with the Central Bank

On July 1, 2015 the new rules of the law «On Organization of Insurance Business in the Russian Federation» shall come into force. The rules will bring changes to the procedure for accounting and safekeeping of securities accepted for coverage of insurance reserves and own funds (capital) of the insurer. According to the law, from now on the assets of insurance companies will be controlled specialized depositories.

INFINITUM was one of the first to register the Rules, which is the main document in the work with insurance companies. Just recently, the Central Bank of the Russian Federation has approved the Rules on the implementation of these activities. The document comes into force on June 29, 2015.

Vadim Burganov, Deputy Head of Specialized Depository Services Dimension, said: ‘These Rules describe the procedure for control over insurance companies’ assets and generally defines the special depository’s activities in cooperation with insurers. The registration of the Rules for implementation of these activities with the Central Bank enables INFINITUM from the moment they come into force to enter into contracts on specialized depository services with insurance companies. Since it was necessary to ensure the availability of registered Rules by July 01, we had to prepare and submit them for registration with the Central Bank under the regulatory uncertainty. Therefore, we have provided and indicated in the Rules a possibility of adjusting some of its provisions (for example, document flow procedure) by a contract for specialized depository services. The control will primarily focus on investment assets — deposits, cash, securities, etc.’