The Russian Finance Ministry has drafted a bill on business reputation a top-managers of financial companies, primarily banks, insurance and pension funds. The document provides lifelong professional disqualification in cases, bringing the company to bankruptcy, reports TASS. The Ministry believes that the adoption of this bill in the autumn session this year.

“The Ministry of Finance prepared a draft law on business reputation. The main thesis is this: if a person brought a financial company where he works, to bankruptcy, he will be disqualified for life. This will, I hope, a very serious barrier against investment in the notoriously unprofitable assets”, – told the Agency Deputy Finance Minister Alexei Moiseev.

“There were many cases when the financial company came to bankruptcy, and the citizens or legal entities were losing money, while people who worked in this company, in fact the responsibility is not carried, if there was a proven fraud,” – said the official.

While working on the bill, the Finance Ministry proceeded from the assumption that a person who works in the financial management of the company, clearly understands what was happening to her. “If the company is on the verge of bankruptcy, then two options – either a person is irresponsible about his powers, or he consciously together with other executives leading the company to bankruptcy”, – said Moiseev.

The bill will apply to members of the Supervisory Board, Board members, accountant and his deputies, the Director General and his deputies. We will apply the “presumption of innocence”: disqualifiziert, according to the Deputy Minister, will be “an opportunity to prove his innocence, then there will be an appeal to the Central Bank”.
If the Central Bank does not agree, he will be able to go to court to prove his innocence.

We will remind, the Russian Central Bank already has a blacklist, which lists the shareholders and managers involved in bringing banks to bankruptcy and other serious violations over the last five years. They are formally forbidden to hold senior positions in the Russian financial organizations for five years. Earlier, the Central Bank has proposed to increase this period to 10 years and several times spoke in favor of a lifetime ban.

In September, the black list of the Central Bank of the Russian Federation was about 5.5 thousand bankers. Basically it get Bank managers, but the Central Bank has threatened to progressively extend the existing criteria for evaluating the financial position of banks to their shareholders. Now it is evaluated by net assets, and the formal characteristics of being in a bankruptcy stage.

This year the Bank of Russia has several times restricted the right of participation of shareholders in the governance of the Bank for non-compliance to the financial situation or for non-compliance to business reputation. Tougher approach, according to analysts, should be expected in 2017.

In addition, according to Agency on insurance of contributions (ASV), with the boundary of the refuge owners and top managers of more than 20 troubled banks.

The Agency believes that the controlling entity after the occurrence of financial problems, which in most cases lead to revocation of the license of the financial organization, often traveling outside of Russia and are trying to “legalize in a new country usurped funds to continue to use them for personal purposes”. The property is legalized by performing numerous in fact sham transactions and eventually ends up in a close family or controlled entities.



The Finance Ministry is preparing a lifetime suspension of top managers of bankrupt banks 05.11.2016

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