INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of August 21, 2017 No. 4501-U

About requirements to the organization by the professional participant of the security market of risk management system, connected with implementation of professional activity in the security market and with implementation of transactions with own property, depending on type of activity and nature of the made transactions

This Instruction based on Item 5 of Article 10.1-1, of Items 3 and 34 of article 42 of the Federal Law of April 22, 1996 No. 39-FZ "About the security market" (The Russian Federation Code, 1996, No. 17, Art. 1918; 2001, No. 33, Art. 3424; 2002, No. 52, Art. 5141; 2004, No. 27, Art. 2711; No. 31, Art. 3225; 2005, No. 11, Art. 900; No. 25, Art. 2426; 2006, No. 1, Art. 5; No. 2, Art. 172; No. 17, Art. 1780; No. 31, Art. 3437; No. 43, Art. 4412; 2007, No. 1, Art. 45; No. 18, Art. 2117; No. 22, Art. 2563; No. 41, Art. 4845; No. 50, Art. 6247; 2008, No. 52, Art. 6221; 2009, No. 1, Art. 28; No. 18, Art. 2154; No. 23, Art. 2770; No. 29, Art. 3642; No. 48, Art. 5731; No. 52, Art. 6428; 2010, No. 17, Art. 1988; No. 31, Art. 4193; No. 41, Art. 5193; 2011, No. 7, Art. 905; No. 23, Art. 3262; No. 29, Art. 4291; No. 48, Art. 6728; No. 49, Art. 7040; No. 50, Art. 7357; 2012, No. 25, Art. 3269; No. 31, Art. 4334; No. 53, Art. 7607; 2013, No. 26, Art. 3207; No. 30, Art. 4043, Art. 4082, Art. 4084; No. 51, Art. 6699; No. 52, Art. 6985; 2014, No. 30, Art. 4219; 2015, No. 1, Art. 13; No. 14, Art. 2022; No. 27, Art. 4001; No. 29, Art. 4348, Art. 4357; 2016, No. 1, Art. 50, Art. 81; No. 27, Art. 4225; 2017, No. 25, Art. 3592; No. 27, Art. 3925; No. 30; the Art. 4444) (further - the Federal Law of April 22, 1996 No. 39-FZ "About the security market") establishes requirements to the organization by the legal entity performing activities of the professional participant of the security market, according to Chapter 2 of the Federal Law of April 22, 1996 No. 39-FZ "About the security market" (further - the professional participant) risk management systems, connected with implementation of professional activity in the security market and with implementation of transactions with own property (further in case of joint mentioning - risks of the professional participant), depending on type of activity and nature of the made transactions (further - risk management system).

Chapter 1. General provisions

1.1. The professional participant according to requirements of this Instruction shall organize the risk management system containing the monitoring system of risks of the professional participant providing timely bringing necessary information to data of governing bodies of the professional participant.

1.2. The professional participant according to Item 3 of article 42 of the Federal Law of April 22, 1996 No. 39-FZ "About the security market" within the organization of risk management system shall develop internal (internal) the document (documents) of the professional participant establishing (establishing) procedure for the organization and implementation of risk management of the professional participant (further - regulations of risk management of the professional participant) conforming (conforming) requirements provided by Chapter 3 presents of the Instruction.

The professional participant shall provide implementation of the processes and actions provided by Chapter 2 presents of the Instruction concerning risks of the professional participant, including risks of the professional participant recognized by it significant which realization can lead to one of the following consequences:

decrease in own means of the professional participant is lower than the size of own means, the Federal Law established for Forex dealer by Item 5 of Article 4.1 of April 22, 1996 No. 39-FZ "About the security market" or the Bank of Russia calculated for other professional participants according to the Instruction of May 11, 2017 No. 4373-U "About requirements to own means of professional participants of the security market", the registered Ministry of Justice of the Russian Federation on June 5, 2017 No. 46943;

approach of the bases for application of measures for the prevention of bankruptcy of the professional participant;

approach of the bases for cancellation of the license of the professional participant, except for cancellations of the license based on the statement of the professional participant of the security market in writing according to the subitem 1 of Item 1 of article 39.1 of the Federal Law of April 22, 1996 No. 39-FZ "About the security market";

impossibility of continuous implementation of further activities of the professional participant.

1.3. The professional participant within the organization of risk management system shall designate the official or create the separate structural division responsible for the organization of risk management system, except for risk of origin at the professional participant of expenses (losses) and (or) other adverse effects as a result of its discrepancy or discrepancy of its activities to requirements of the legislation of the Russian Federation on the security market, basic and internal standards of self-regulatory organization in the sphere of the financial market which member is the professional participant, the constituent and internal documents of the professional participant connected with implementation of professional activity in the security market and also as a result of application of corrective actions from supervisory authorities (further - regulatory risk).

The organization of identification, analysis, assessment, monitoring and control of regulatory risk, and also management of it shall be performed by the controller (service of internal control) of the professional participant.

The official (separate structural division) responsible for the organization of risk management system shall be accountable to body (bodies) of management of the professional participant.

The official (the head of separate structural division) responsible (responsible) for the organization of risk management system, shall not (shall not) to perform the functions connected with making of transactions and the conclusion of transactions of the professional participant, except for the case established by the paragraph the fifth this Item.

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