OREANDA-NEWS. December 04, 2012. The Government of the Russian Federation introduced to the State Duma of the Federal Assembly of the Russian Federation a draft Law “On Introducing Changes to Article 6 of the Law of the Russian Federation “On Exchanges and Exchange Trading” and Certain Legislative Acts of the Russian Federation”, devised by FAS Russia in the first six months of 2012, reported the press-centre of FAS Russia.

The draft Law introduced administrative liability for avoiding the obligation to register off-exchange transactions at exchanges under Article 6 of the Law of the Russian Federation “On Exchanges and Exchange Trading”.

The draft Law establishes responsibility for the participants of off-exchange transactions with exchange commodities to submit information about such transactions to an exchange in the cases, and according to the procedures, volume and the period established by the Government of the Russian Federation.

To prevent avoiding the responsibility FAS proposes to introduce administrative liability regarding parties of off-exchange transactions. It also refers to submitting incomplete and (or) incorrect information as well as failure to submit such information. It is planned to establish administrative sanctions: an administrative fine upon physical persons – from 1000 to 2500 Rubles; upon officials – from 20,000 to 30,000 Rubles; upon legal entities – from 300,000 to 500,000 Rubles.

The Federal Law “On Organized Trading” comes into force on 1st January 2013. Article 11 of the Law also establishes responsibility for the parties of off-exchange transactions to submit information for registering at exchanges.

Simultaneously, a new edition of Article 14.24 of the Code of the Russian Federation on Administrative Violations also comes into force on 1st January 2013. It establishes administrative liability of parties to off-exchange transactions for breaching the timeframe, established by normative legal acts of the Government of the Russian Federation, for providing information about transactions to exchanges, in particular, submitting incomplete and (or) incorrect information.

Administrative liability for failure to provide information about off-exchange transactions is not established.

In view of the above, the draft Law adds Part 6 Article 14.24 of the Code of the Russian Federation on Administrative Violations by establishing liability for failure to provide information about off-exchange contracts.

Reference:

The Registration Procedure (entering information about a completed off-exchange transaction with exchange commodity, in particular, long-term supply contract, to the Register of off-exchange transactions with exchange commodity, by a commodity exchange), as well as the Procedure for keeping the register (an electronic database containing information about all off-exchange transactions with exchange commodities subject to registration) and providing information from the Register are established by the Regulations on registering off-exchange transactions with exchange commodities by exchanges, particularly, long-term supply contracts, as well as keeping the Register of the above transactions and providing information from the Register, approved by No. 65 Decree of the Government of the Russian Federation of 10th February 2011.

The list of exchange commodities, with regard to which off-exchange transactions, in particular, long-term supply contracts, subject to mandatory registration by an exchange, is approved by No. 167-r Order of the Government of the Russian Federation of 10th February 2011.