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. Last Updated: 07/27/2016

Overhaul For Markets Watchdog

ST. PETERSBURG -- The new head of the country's financial markets watchdog said Sunday that his service needed an overhaul before he could demand more powers.

"For me, priority No. 1 is our internal structure. We would rather restore order at home," Vladimir Milovidov, head of the Federal Service for Financial Markets, told reporters on the sidelines of the St. Petersburg International Economic Forum.

Milovidov said most new bond and share issues in Russia were registered by regional branches of the financial markets watchdog and that there was not enough coordination with the central office. He said his first step would be to fix that.

Milovidov has just replaced Oleg Vyugin, who headed the service from March 2004. He was an aide to Prime Minister Mikhail Fradkov and worked from 2000 to 2003 as deputy head of the Federal Securities Commission, the forerunner to the financial markets service.

Milovidov, who kept a low public profile during his three-year tenure in the government, is widely expected to continue Vyugin's cautious drive to bring Russia's stock markets into line with international standards.

Milovidov said he did not see any major trends in the Russian market changing in medium term.

"The market will rise, fall, expand, there will be initial public offerings, this is all happening already. I do not see any factors that can alter that," he said.

Vyugin resigned to join MDM Bank after his idea to create a super-regulator to oversee the country's markets was rejected. Financial markets are regulated by the financial markets service, the Central Bank and the Finance Ministry.