The agreement on creation of conditions in the financial markets for providing liberalized capital movement

of December 9, 2010

The Republic of Belarus, the Republic of Kazakhstan and the Russian Federation which are hereinafter referred to as with the Parties

based on the Agreement on the Customs union between the Russian Federation and the Republic of Belarus of January 6, 1995, the Agreement on the Customs union of January 20, 1995, the Agreement on the Customs union and the Common economic space of February 26, 1999, the Constitutive treaty of Eurasian economic community of October 10, 2000,

for the purpose of creation of conditions in the financial markets for providing liberalized capital movement, development of mutually beneficial cooperation in the financial sector

agreed as follows:

The article 1 Determination of Concepts, used in this agreement

The concepts used in this agreement mean

following:

"financial services" - the services of financial nature including:

banking services;

services in the foreign exchange market;

services of professional participants of the security market;

insurance services;

"professional participants of the security market" - the legal entities having the right to perform professional activity in the security market according to the legislation of the Party in the territory of which they are registered;

"credit institution" - the legal entity who for generation of profit as main objective of the activities based on special permission (license) issued by the authorized body performing banking regulation has the right to perform banking activities;

"insurance organization" - the legal entity having the right to perform insurance (reinsurance) activity according to the legislation of the Party in the territory of which it is registered;

"members of the financial market" - legal entities who perform activities for provision of financial services.

Article 2 of the Measure, directed to implementation of this agreement

For the purpose of implementation of this agreement of the Party perform necessary measures in the bank sphere, in the foreign exchange market, in the security market and in the field of insurance.

In the bank sphere the following measures are performed:

harmonization of the legislation of the Parties concerning creation and acquisition of shares (shares) in the authorized capital of credit institutions by investors of the Parties;

harmonization of approaches to regulation of risks in the financial market according to international standards;

the organization of exchange of information between authorized bodies of the Parties concerning regulation and development of the bank sphere.

In the foreign exchange market the following measures are performed:

the organization of exchange of information between authorized bodies of the Parties concerning regulation and development of the foreign exchange market;

creation of effective infrastructure for carrying out conversion transactions with national currencies of the Parties for the purpose of expansion of their use in the foreign trade payments and calculations;

harmonization of the principles and rules of establishment of the exchange rates of national currencies of the Parties.

In the security market the following measures are performed:

the organization of exchange of information between authorized bodies of the Parties concerning regulation of the security market and other financial instruments;

harmonization of the legislation of the Parties in the field of regulation of activities of professional participants of the security market;

harmonization of requirements to the procedure of issue (procedure for release) of securities of issuers of the Parties;

harmonization of requirements of the legislation of the Parties to placement and security circulation of foreign issuers in the national markets.

In the field of insurance the following measures are performed:

the organization of exchange of information between authorized bodies of the Parties concerning regulation of the insurance market;

harmonization of the insurance legislation of the Parties, and also requirements and approaches to insurance supervision and regulation of insurance activity taking into account provisions of the international rules and standards;

cooperation in the field of rapprochement of regulating regulations in the field of compulsory insurance, reinsurance, intermediary activities when implementing insurance;

approval of single requirements for protection of the rights and consumer interests of insurance services;

approval of the single principles and approaches to determination of solvency and financial stability of the insurance (reinsurance) organizations.

Article 3 Ensuring Transparency of Activities of Members of the Financial Market, implementation of requirements of international accounting standards

Collateral actions of the Parties on ensuring transparency of activities of members of the financial market are directed on:

harmonization of requirements to amount, quality and frequency of the published information;

harmonization of the legislation of the Parties in the field of disclosure of information by issuers, counteractions to unauthorized use of the insider information and to manipulation in the security market;

harmonization of requirements to implementation of activities of rating agencies according to the principles of transparency, accountability and responsibility for the prevention of systemic risks;

completion of transition of members of the financial market of the Parties to use of international accounting standards.

Article 4 Stages of implementation of this agreement

Implementation of this agreement takes place in two stages.

The first stage provides the organization of exchange of information between authorized bodies of the Parties in the spheres specified in Articles 2 and 3 of this agreement on permanent basis.

The second stage provides harmonization of the legislation of the Parties in the spheres specified in Articles 2 and 3 of this agreement taking into account provisions of the international rules and standards, including harmonization of licensed requirements to members of the financial market, supervising requirements and procedure of supervision of members of the financial market, and also possibility of placement and security circulation of issuers of the Parties in all territory of the Common economic space on condition of registration of issue (release) of securities by regulating authority of the state of registration of the issuer. Realization term - till December 31, 2013.

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