Policy Advice
Russia: between 1993 and 2001 we worked firstly with the privatisation ministry (Goskomimushchestvo) advising on policy in relation to the development of privatisation investment funds and secondly, from 1995, with the Russian Federal Commission for Securities Markets, advising on policy in relation to the development of unit investment funds. Broadly this entailed assessing what barriers there were to these fundsÂ’ creation and development and identifying how these could be reduced or removed, in addition to advising on the legislative and regulatory framework, policy in relation to licensing and regulating funds and fundsÂ’ potential role. Around 650 voucher investment funds were formed, which attracted around one third of all vouchers (funds attracted around a third of all vouchers, which were bearer so could also be sold for cash, or used to buy shares in privatising companies). There are now around 350 unit investment funds, with a total value at the end of 2005 of around USD 7.6 billion.
Legal and Regulatory Drafting
Russia: between 1995 and 2001 we assisted the Russian Federal Commission for Securities Markets to draft an investment funds decree, and subsequently an investment funds law, passed in 2001, and a full set of twenty-six regulations underpinning the law governing inter alia investment and borrowing powers, valuation, issue and redemption, disclosure, sales and conduct of business rules for managers and specialised depositaries (custodians with supervisory duties). This work was undertaken as part of a project financed by DfID for some hundred and twenty man-months over the period.
Capacity Building
Russia: between 1996/1998 we led a consortium which created and installed a system of examinations for professionals in Russian securities markets, which was administered by the Russian Federal Commission for Securities Markets. Our team wrote the syllabus, the workbooks and the multiple-choice examination questions for qualifications for broker/dealers, registrars and fund managers and installed a computerised examinations system. The projects was for twelve man-months and was funded by the Department for International Development.