INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of September 29, 2016 No. 4144-U

About requirements to risk management system, connected with implementation of repository activities, and to rules of risk management of repository

This Instruction based on Item 5 of article 15.7 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, of the Art. 4225) (further - the Federal Law "About the Security Market") establishes requirements to risk management system, connected with implementation of repository activities (further - risks of repository), and to rules of risk management of repository.

Chapter 1. General provisions

1.1. The repository shall organize risk management system in accordance with the legislation of the Russian Federation, including this Instruction, regulatory legal acts of the Russian Federation and regulations of the Bank of Russia establishing requirements to risk management system, connected with implementation of types of activity with which repository activities, in the part which is not contradicting requirements of this Instruction taking into account the features established by the paragraph the second this Item are combined.

The repository which is the organization combining the activities with activities of credit institution shall be guided by the Instruction of the Bank of Russia of April 15, 2015 No. 3624-U "About requirements to risk management system and the capital of credit institution and banking group" <1> (further - the Instruction of the Bank of Russia No. 3624-U), the Provision of the Bank of Russia of December 16, 2003 No. 242-P "About the organization of internal control in credit institutions and banking groups" <2> (further - the Provision of the Bank of Russia No. 242-P), the paragraph to the second Item 1. 2, paragraphs second and third Item 1. 4, the paragraph third Item 1.5 and Chapter 2 presents of the Instruction, and also according to requirements of Chapter 5 of this Instruction shall develop rules of risk management of repository which contents is determined taking into account the Instruction of the Bank of Russia No. 3624-U, the Provision of the Bank of Russia No. 242-P, Item 1 paragraph two. 2, paragraphs two and third Item 1. 4, paragraph of third Item 1.5 and Chapter 2 presents of the Instruction.

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<1> It is registered by the Ministry of Justice of the Russian Federation on May 26, 2015, registration No. 37388, with the changes made by Instructions of the Bank of Russia of December 3, 2015 No. 3878-U (it is registered by the Ministry of Justice of the Russian Federation on December 28, 2015, registration No. 40325), of November 16, 2017 No. 4606-U (it is registered by the Ministry of Justice of the Russian Federation on December 7, 2017, registration No. 49156), of June 27, 2018 No. 4838-U (it is registered by the Ministry of Justice of the Russian Federation on September 5, 2018, registration No. 52084), of April 8, 2020 No. 5431-U (it is registered by the Ministry of Justice of the Russian Federation on June 3, 2020, registration No. 58576), of January 10, 2023 No. 6356-U (it is registered by the Ministry of Justice of the Russian Federation on June 14, 2023, registration No. 73833).

<2> It is registered by the Ministry of Justice of the Russian Federation on January 27, 2004, registration No. 5489, with the changes made by Instructions of the Bank of Russia of November 30, 2004 No. 1521-U (it is registered by the Ministry of Justice of the Russian Federation on December 22, 2004, registration No. 6222), of March 5, 2009 No. 2194-U (it is registered by the Ministry of Justice of the Russian Federation on March 20, 2009, registration No. 13547), of April 24, 2014 No. 3241-U (it is registered by the Ministry of Justice of the Russian Federation on June 30, 2014, registration No. 32913), of October 4, 2017 No. 4564-U (it is registered by the Ministry of Justice of the Russian Federation on October 25, 2017, registration No. 48670).

The repository shall exercise risk management of business disruption of repository as a result of imperfection of internal business processes of repository and (or) actions or failure to act of workers of repository, mistakes in functioning of program technical means of repository, and also as a result of external events and (or) actions or failure to act of the third parties (further - operational risk) according to the Provision of the Bank of Russia of October 2, 2023 No. 827-P "About requirements to risk management of the clearing organizations, the central partners, the central depositary and repositories regarding management of operational risk" <3>.

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<3> It is registered by the Ministry of Justice of the Russian Federation on November 29, 2023 registration No. 76162.

1.2. Within the organization of risk management system the repository shall provide implementation of the actions provided by this Instruction including identification, monitoring and the risks assessment arising when rendering by repository of the services determined by Item 1 of article 15.5 of the Federal law "About the Security Market" (further - repository services), including risks which realization can lead to loss of financial stability of repository, and (or) violation of going concern on rendering repository services, and (or) other adverse effects which can result in impossibility of rendering repository services, and also management of the specified risks.

Risk management system of repository shall provide management both with risks of repository, and the risks arising when implementing types of activity with which repository activities are combined.

In case of attraction by repository of the third parties for accomplishment of the separate transactions necessary for implementation of repository activities, risk management system of repository shall provide risk management, connected with involvement of the third parties.

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