Russias Federal Financial Markets Service (FFMS) on Sunday enacted a directive allowing foreign custodians to open foreign nominee holder accounts with Russian custodians. The directive was published on Oct. 24 2012.
The opening of the accounts is dependent on the international agreement between FFMS and the corresponding foreign body regulating securities market.
The foreign nominee holder account may be opened for a foreign organization by a Russian custodian if the foreign nominee confirms via documents it is located in an OECD member state, its place of incorporation is a state, where FFMS has concluded a cooperation agreement with a corresponding body in this state (for example, Memorandum of Understanding between the Federal Financial Markets Service of Russia and the Cyprus Securities and Exchange Commission) and this organization is authorized to perform accounting, safekeeping and transfer of rights on securities under the local law.
A foreign authorized nominee holder account (applicable for management companies) may also be opened for a foreign organization by a Russian custodian.
(JDC)