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. Last Updated: 07/27/2016

recent legislation

National depositary. Presidential Decree No. 1034 of Sept. 16, 1997, "On Securing the Rights of Investors and Shareholders of Securities in the RF." The decree approves the creation of a national depositary system to consist of the "Central Depositary -- Central Fund for Keeping and Processing Securities Market Information" and organizations that (i) hold professional securities market participant licenses to conduct depositary activities granted by the Federal Securities Commission and (ii) comply with the standards of the national depositary system. The national depositary system will be a centralized system for safekeeping securities and rights to them; it is a federal unitary enterprise and may not be denationalized and privatized, and it may not conduct any other professional activity on the securities market. The decree provides a list of documents to be submitted by organizations wishing to enter the national depositary system; decisions on admitting such organizations will be made by the FSC. The decree requires state bodies entrusted with holding state-owned shares of privatized enterprises to transfer such shares to a member organization of the national depositary system prior to Jan. 1, 1998.

Securities licensing. Federal Securities Commission Order No. 820-r of Aug. 20, 1997, "On Licensing Professional Participants of the Securities Market by the Regional Departments of the FSC." The order establishes that commercial organizations with charter capital less than or equal to 450,000 ecu must apply to the regional branches of the FSC for licenses to conduct professional securities market participant activities. Such commercial organizations may apply for the following types of licenses: brokerage activities (excluding operations with the funds of individuals), dealer operations, and depositary-custodial activities. Commercial organizations that have charter capital in excess of 450,000 ecu must apply directly to the FSC or its authorized bodies for licensing and must notify the regional branches of the FSC.

Shareholder protection. Presidential Decree No. 1009 of Sept. 11, 1997, "On Regional and Local Funds for Protecting the Rights of Investors and Shareholders." The decree approves the creation of regional and local funds to protect the rights of investors and shareholders. The founders of such funds may include regional bodies of executive power, local self-government bodies and public organizations for the protection of investors and shareholders rights. The funds' finances will consist of contributions of the founders, voluntary contributions, profit received from using the funds' finances and from entrepreneurial and other activities. The funds may use their finances to make compensatory payments to investors and shareholders. The decree permits the funds to invest their finances in securities and other highly liquid assets and use the profit for compensatory payments.

Product labeling. Government Resolution No. 1037 of Aug. 15, 1997, "On Measures to Ensure the Presence of Information in Russian on Nonfood Products to be Imported in the RF." The resolution requires that beginning July 1, 1998, all nonfood products imported into the RF bear certain information in the Russian language. The sale of nonfood products that does not contain such information is prohibited on the territory of the RF from such date. The information must be placed on a package or a label of the product or on an insert to be enclosed with each unit of the goods or by another method accepted for specific kinds of goods. The resolution requires that the information include the name of the product, the country of origin and the name of the manufacturer (which may be in Latin), application instructions, the main characteristics, rules and conditions for effective and safe use of the product and other information that will be determined by the Committee for Standardization, Metrology and Certification of the Russian Federation in coordination with the Foreign Trade Ministry, the Economics Ministry and the Health Ministry prior to Jan. 1, 1998.

Source: White & Case