03 Dec 2008, Victoria Pennington, Operational Risk & Regulation
MOSCOW - New laws intended to crack down on incidents of insider trading in Russia will be introduced next year, according to Vladimir Milovidov, head of Russian regulator the Federal Financial Markets Service (FFMS).
Milovidov said the legislation would establish a national fund, backed by contributions from brokerages and investment firms, to compensate victims of investment fraud. Milovidov said the regulations, which took two years to draft, would create a "legal framework" for the definition of insider trading and share manipulation, and assign appropriate punishments.
The legislation is due to appear before Russia's lower house, the State Duma, shortly, with draft regulations on the establishment of the compensation fund expected by July 1 next year.
The Russian stock market has experienced significant falls since the early days of the financial crisis. Russian prime minister Vladimir Putin has called for action to tackle market abuse in a bid to restore public confidence in the markets.
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