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17 Dec 2024, 19:41

State Duma passes bill tightening control over deals made by large financial organizations

The bill will become law on September 1, 2025

MOSCOW, December 17. /TASS/. The State Duma (the lower house of the Russian parliament) has passed the bill on an additional mechanism of control over transactions made by large financial organizations in the second and third readings. The document has been initiated by the Russian government.

The law introduces additional control over transactions made by large financial organizations. This concerns entities, whose assets will be worth more than the levels set by the Russian government, including as agreed with the Bank of Russia, irrespective of the amount of assets of the financial organizations being acquired. Additional control over deals made by large financial entities regarding other financial organizations of the same type, whose assets are worth not more than the levels set by the Russian government, is required for solving the problems related to growth of concentration on respective markets of financial services, the cabinet said.

The suggested approach will allow selectively controlling deals that may negatively influence the state of competition on a respective market of financial services, as well as use a risk-oriented approach in exercise of state supervision over economic concentration without the necessity for the remaining market participants to bear extra regulative costs, according to an explanatory note.

The bill will become law on September 1, 2025.