Adopted by State Duma on 4 June 1999
Approved by the Federation Council on 9 June 1999
Chapter 1. General Provisions (Articles 1-3)
Chapter 2. Dominant Position of a Financial organisation (Articles 4-5)
Chapter 3. Control Over Cases of Restriction of Competition in Financial Services Market (Articles 6-11)
Chapter 4. Normative Legal Acts and Actions of the Federal Executive Bodies, the Central Bank of the Russian Federation, Executive Bodies of Constituents of the Russian Federation and Local Authorities Aimed at Restricting Competition in Financial Services Market (Articles 12-14)
Chapter 5. Unfair Competition (Article 15)
Chapter 6. State Control over Concentration of Capital in Financial Services Market (Articles 16-20)
Chapter 7. State Control over Activities in the Field of Protection of Competition in Financial Services Market (Articles 21-27)
Chapter 8. Liability for the Violation of Antimonopoly Law and Other Normative Legal Acts on the Protection of Competition in Financial Services Market (Articles 28-29)
Chapter 9. Procedure of Adoption, Appealing, and Execution of Decisions and Orders of the Federal Antimonopoly Authority (Articles 30-32)
Chapter 10. Final Provisions (Article 33)
Chapter 1. General provisions
Article 1. Matters regulated by the present Federal Law
The present Federal Law extends to relations affecting competition in securities
market, banking services market, insurance services market and financial
services market (hereinafter - financial services market) and associated
with the protection of competition in financial services market.
The present Federal Law shall also apply in those instances in which the activities
pursued and agreements entered into by residents of the Russian Federation
beyond the boundaries of the Russian Federation lead or may lead to a restraint
of competition in financial services market in the Russian Federation.
Article 2. Legislation of the Russian Federation and Other
Normative Legal Acts on the Protection of Competition in Financial Services
Market
1. Relations affecting competition in financial services market and associated
with the protection of competition in securities market shall be regulated
by the present Federal Law, other federal laws, decrees of the President of
the Russian Federation, regulations of the Government of the Russian Federation,
and normative legal acts issued by the federal antimonopoly authority, normative
acts of the Central Bank of the Russian Federation and normative legal acts
of federal executive bodies? regulating the financial services market.
2. If an international treaty of the Russian Federation establishes other rules
than the ones envisaged by antimonopoly law of the Russian Federation, rules
of such international treaty of the Russian Federation shall apply.
Article 3. Basic Notions Used in the Present Federal Law
For the purposes of the present Federal Law the following basic notions shall
apply:
financial service shall mean activities associated with raising
and use of funds of legal entities and individuals. For the purposes of the
present Federal Law financial services shall include banking operations and
transactions, insurance and securities market services, making financial lease
contracts and contracts for trust management of monetary funds and securities,
and other financial services;
financial organisation shall mean a legal entity performing,
based on a relevant license, banking operations and transactions or providing
securities market services, insurance or other financial services, as well
as a private pension fund, its managing company, a managing company of the
mutual fund, a leasing company, a credit consumer union and any other institution
performing operations and transactions in financial services market. Provisions
of the present Federal Law concerning financial organisations shall also apply
to individual entrepreneurs operating in financial services market based on
a relevant license;
financial services market shall mean a field of activities
of financial organisations on the territory of the Russian Federation or any
part thereof determined based on the point of rendering financial services
to customers;
competition in financial services market shall mean rivalry
between financial organisations whereby their autonomous actions effectively
limit the opportunity of any one of them to unilaterally influence the general
conditions of rendering financial services in financial services market;
unfair competition in financial services market shall mean
any actions by financial organisations aimed at gaining advantages in the course
of entrepreneurial activity which contravene legislation of the Russian Federation
and usual business practice, which have caused or may cause damage to other
financial organisations, i.e. their competitors in financial services market,
or may damage their business reputation;
dominant position of a financial organisation shall mean a
share of financial services provided by a financial organisation (several financial
organisations) in financial services market affording it (them) an opportunity
to exert decisive influence on the general conditions of providing financial
services in financial services market or to make it difficult for other financial
organisations to get access to the market;
concentration of capital in financial services market shall
mean consolidation, merger of financial organisations, their acquisition of
one anotherˇ¦s assets or shares (participatory interests in the authorised capital),
and acquisition of assets or shares (participatory interests in the authorised
capital) of a financial organisation by third parties;
agreement shall mean an agreement between financial organisations
or between a financial organisation(s), on the one part, and federal executive
bodies, executive bodies of constituents of the Russian Federation, local authorities,
on the other part, leading, among other things, to the restriction of competition
in financial services market. For the purposes of the present Federal Law the
agreement shall not include agency financial services;
group of persons shall mean a group of legal entities and
(or) individuals recognised as such by the legislation of the Russian Federation;
affiliated person shall mean a legal entity and (or) individual
recognised as such by the legislation of the Russian Federation.
Provisions of the present Federal Law concerning financial organisations shall
also apply to the affiliated persons and group of persons.
Chapter 2. Dominant Position of a Financial organisation
Article 4. Identification of the Dominant Position of a Financial
organisation
1. Dominant position of a financial organisation in financial services market
shall be? determined by federal antimonopoly authorities in accordance with
the present Federal Law according to the procedure approved by the federal
antimonopoly authority for each type of financial services market, subject
to additional approval by:
the federal executive bodies regulating the securities market - for securities
market;
the Central Bank of the Russian Federation - for the banking services market;
the federal executive body regulating the insurance services market - for insurance
services market;
the federal executive bodies regulating other financial services market - for
other financial services market.
2. The share of a financial organisation in financial services market shall
be determined based on the ratio of its turnover for a particular type of financial
services to the total turnover of financial organisations within the established
borders of financial services market. The procedure for assessing the turnover
of financial services of particular financial organisations and financial market
borders shall be established by the Government of the Russian Federation.
3. Dominant position of a financial organisation shall be determined within
the borders of the market where such financial organisation provides its services,
irrespective of its place of business specified in the foundation documents.
Article 5. Abuse of a Dominant Market Position by a Financial organisation
A financial organisation occupying a dominant position in financial services
market shall be prohibited to carry out activities making it difficult for
other financial organisations to get access to financial services market and
(or) having a negative impact on the general conditions of providing financial
services in financial services market, including such behaviour as:
including discriminatory conditions into a contract, which place the financial
organisation in an unequal position with other financial organisations;
consenting to conclude a contract only on condition that it contains provisions
in which a financial organisation is not interested;
fixing an unreasonably high (low) price for the contractual financial service
when making a contract.
Chapter 3. Control Over Cases of Restriction of Competition in Financial Services Market
Article 6. Agreements or Concerted Practices of Financial organisations Restricting Competition in Financial Services Market
Any agreements or concerted practices between financial organisations or between
financial organisations and federal executive bodies regulating the financial
services market, federal executive bodies, executive bodies of constituents
of the Russian Federation, local authorities and any other legal entities except
agreements or concerted actions of financial organisations with the Central
Bank of the Russian Federation shall be prohibited and recognised, in accordance
with the procedure established in the present Federal law, invalid, in whole
or in part, if such agreements or concerted practices restrict or may restrict
competition in financial services market, including cases when agreements and
concerted action are aimed at:
fixing (maintenance) of prices (rates), discounts, allowances, extra charges,
markups, interest rates;
increasing, reducing, or maintaining of tender prices;
division of financial services market by regions, by types of financial services
rendered in financial services market or by consumers of financial services
in financial services market;
restricting access of other financial organisations to financial services market
or ousting them from financial services market;
establishing unreasonable criteria for membership in payment and other systems,
while competing financial organisations would not be able to provide the necessary
financial services to their consumers and would not be able to compete in financial
services market without such membership.
Article 7. Agreements and Concerted Practices of Financial organisations not Subject to Prohibition
Agreements and concerted practices of financial organisations shall not be
prohibited in cases envisaged by the legislation of the Russian Federation,
and agreements and concerted practices aimed to meet the below goals shall
not be prohibited either:
unification of standards applicable to the operations of financial organisations
participating in agreements;
carrying out joint scientific researches and studies;
joint buying of hardware for performing primary activities;
using uniform software and hardware for information and data processing.
The Government of the Russian Federation may establish other terms of agreements
and concerted practices that shall not be subject to prohibition, including
establishing terms for specific types of financial organisations.
Article 8. Notification of the Federal Antimonopoly Authority
of Agreements and Concerted Practices of Financial organisations Restricting
Competition in Financial Services Market
1. Financial organisations shall be obliged to forward a notification to the
federal antimonopoly authority of any agreements made or concerted practices
introduced among themselves or with federal executive bodies, executive bodies
of constituents of the Russian Federation, local authorities and with any legal
entities (hereinafter - notification), according to the procedure envisaged
by the present Federal Law, except agreements or concerted practices of financial
organisations whose total share in financial services market is or may be less
than the standard established by the Government of the Russian Federation.
The form of notification shall be established by the federal antimonopoly authority.
The following documents shall be attached to the notification:
a copy of an agreement made or decision on the introduction of concerted practices
including all attachments thereto;
data on all primary activities of participants of the agreement or concerted
practices and turnover for all primary activities;
financial and economic reports submitted to the Central Bank of the? Russian
Federation, federal executive bodies regulating the financial services market.
The federal antimonopoly authority shall not be entitled to require that financial
organisations provide other documents and information.
2. In order to notify the federal antimonopoly authority of an agreement or
concerted practices, participants or one of the participants of such agreement
or concerted practices shall file an application within 15 days of making such
agreement or introducing concerted practices.
Article 9. Procedure for the Federal Antimonopoly Authority
to Make a Decision on Recognising Agreements and Concerted Practices of Financial
organisations as Restricting Competition in Financial Services Market
1. The federal antimonopoly authority shall, after verification of submitted
notification and documents and no later than 30 days after receipt of the above
specified notification and documents, provided there are any indications that
the agreement or concerted practices of which the authority was notified may
lead to restriction of competition in financial services market, take a reasonable
decision on recognising the agreement or concerted practices of financial organisations
lawful or restricting competition in financial services market.
The federal antimonopoly authority may decide to carry out an additional check
of the submitted notification and all documents according to the procedure
established by the federal antimonopoly authority, in which case it shall forthwith
notify the participants of the agreement or concerted practices thereof.
The federal antimonopoly authority shall, within 30 days after taking a decision
on carrying out an additional check of the submitted notification and all documents,
take a reasonable decision on recognising the agreement or concerted practices
lawful or restricting competition in financial services market.
2. In case the federal antimonopoly authority recognises an agreement or concerted
practices as restricting competition in financial services market, participants
of such agreement or concerted shall be obliged, upon request of the federal
antimonopoly body, to either terminate the agreement or cease the concerted
practices, or change terms and conditions of the agreement or concerted practices,
and comply with other lawful requirements specified in the decision of the
federal antimonopoly authority concerning restoration of competitive environment
in financial services market.
3. The federal antimonopoly authority may cancel its decision on recognising
the agreement or concerted practices of financial organisations lawful or restricting
competition in financial services market or amend its decisions, and take decisions
on carrying out additional check of agreements or concerted practices after
30 days from receipt of the notification of an agreement or concerted practices,
provided:
circumstances, based on which the decision on recognising the agreement or
concerted practices lawful or restricting competition in financial services
market was taken, have changed;
participants of the agreement or concerted practices violate any provision
specified in the decision on recognising the agreement or concerted practices
lawful or restricting competition in financial services market;
the decision on recognising the agreement or concerted practices lawful or
restricting competition in financial services market is based on unreliable
information received from participants of the agreement or concerted practices.
Article 10. Cancellation of Agreements or Transactions Made
under Concerted Practices of Financial Organisations that Restrict Competition
in Financial Services Market
Agreements or transactions made under concerted practices of financial organisations
and leading to restriction of competition in financial services market may
be recognised invalid, in whole or in part, by judicial means, at the suit
of the federal antimonopoly authority.
Damage caused as a result of making an agreement or introducing concerted practices
that restrict competition and (or) infringing on the interests of consumers
in financial services market shall be subject to reimbursement according to
the procedure established by the legislation of the Russian Federation.
Article 11. Setting up of Unions (Associations, Alliances)
of Financial organisations
1. Unions (associations, alliances) of financial organisations shall be set
up only subject to preliminary approval of the federal antimonopoly authority
according to the procedure envisaged by the present Federal Law.
2. Participants or one of the participants of unions (associations, alliances)
of financial organisations shall forward? to the federal antimonopoly authority,
within 30 days from the moment of taking decision on setting up a union (association,
alliance) of financial organisations, a request for approval specified in Item
1 of the present Article.
Decision on recognising setting up of unions (associations, alliances) of financial
organisations lawful or restricting competition in financial services market?
shall be taken by the federal antimonopoly authority within 30 days after getting
all information required for taking the specified decision.
3. In case the federal antimonopoly authority recognises that setting up of
unions (associations, alliances) of financial organisations restricts competition
in financial services market, financial organisations participating in the
specified unions (associations, alliances) shall be obliged, upon request of
the federal antimonopoly authority, to change conditions of their setting up,
and to comply with other lawful requirements envisaged by decision of the federal
antimonopoly authority on restoration of competitive environment in financial
services market.
4. The actions of financial organisations aimed at setting up of unions (associations,
alliances) leading to restriction of competition in financial services market
specified in the present article may be recognised invalid, in whole or in
part, by judicial means, at the suit of the federal antimonopoly authority.
Damage caused as a result of setting up of unions (associations, alliances)
which has resulted in restriction of competition in financial services market
shall be subject to reimbursement according to the procedure established by
the legislation of the Russian Federation.
Chapter 4. Normative Legal Acts and Actions of the Federal Executive Bodies, the Central Bank of the Russian Federation, Executive Bodies of Constituents of the Russian Federation and Local Authorities Aimed at Restricting Competition in Financial Services Market
Article 12. Normative Legal Acts and Actions of the Federal
Executive Bodies, the Central Bank of the Russian Federation, Executive Bodies
of Constituents of the Russian Federation and Local Authorities Aimed at Restricting
Competition in Financial Services Market
Federal executive bodies, the Central Bank of the Russian Federation, executive
bodies of constituents of the Russian Federation and local authorities shall
not be entitled to adopt normative legal acts and (or) perform actions, including
concerted actions, with other federal executive bodies, executive bodies of
constituents of the Russian Federation and local authorities, financial organisations
restricting competition in financial services market and aimed at setting up
unreasonably favourable conditions for individual financial organisations and
(or) infringing on the interests of other financial organisations, except cases
established by the legislation of the Russian Federation.
Federal executive bodies, the Central Bank of the Russian Federation, executive
bodies of constituents of the Russian Federation, local authorities shall also
be prohibited to:
make obstructions, without grounds, to setting up new financial organisations
in financial services market;
restrict, unless based on the federal laws, access of financial organisations
into financial services market or oust from it any financial organisations;
make obstructions to activities of financial organisations in financial services
market;
establish rules restricting consumer choice of financial organisations providing
financial services;
grant to one or several financial organisations privileges placing them in
a preferential position with regard to other financial organisations operating
in the same financial services market.
Article 13. Competitive Selection of Financial organisations?
for Carrying out Individual Transactions with Relevant Budgetary Funds
Financial organisations engaged in individual transactions with relevant budgetary
funds shall be selected based on the results of an open tender.
Article 14. Procedure for an Open Tender for Selection of
Financial organisations for Carrying out Individual Transactions with Relevant
Budgetary Funds
1. The procedure for an open tender aimed at selection of financial organisations
for carrying out individual transactions with relevant budgetary funds shall
be established by federal executive bodies, executive bodies of constituents
of the Russian Federation, local authorities and approved by the federal antimonopoly
authority subject to the following criteria:
it is required to establish rules for setting up and operation of tender committee;
it is required to establish procedures for arrangement and carrying out an
open tender and requirements to its participants;
the organiser of an open tender shall be prohibited to coordinate activities
of its participants which results or may result in restriction of competition
between its participants or infringement on the interests of some of the participants;
open tender participants shall be acquainted with the rules of such open tender
within reasonable term before the tender;
access to an open tender of any persons that have the right to participate
in the open tender only if they violate established open tender procedures
or legislation of the Russian Federation shall be restricted or blocked, and
such persons shall be excluded from tender participants.
Open tender procedure also provides for the following:
none of the open tender participants shall be subject to preferential conditions
for participating in such open tender, including access to confidential information,
reduced rate for participation in the open tender;
organisers of open tenders and employees of open tender organisers may not
participate in the open tender or be affiliated persons of any participants
of such open tender;
affiliated persons participating in the open tender shall be considered as
one participant;
the number of open tender participants shall be no less than two.
2. Violation of the rules established in the present Article shall be considered
enough grounds for recognising the open tender invalid.
Chapter 5. Unfair Competition
Article 15. Forms of Unfair Competition
Unfair competition between financial organisations in financial services market
expressed in actions aimed at getting advantages when carrying out entrepreneurial
activities, agreements or concerted practices as greed between themselves
or with third parties, which contradict the legislation of the Russian Federation
and usual business practice and may cause or have caused losses to other
financial organisations competing in financial services market or have damaged
their business reputation, shall be prohibited, including the following:
the dissemination of false, inaccurate, or distorted information capable of
causing losses to another financial organisation or causing damage to its business
reputation;
making inaccurate comparison of financial services provided by a financial
organisation with financial services provided by other financial organisations;
the receipt, use, and disclosure of information constituting a trade or commercial
secret without consent of its owner, provided such procedures are not envisaged
by the legislation of the Russian Federation.
Chapter 6. State Control over Concentration of Capital in Financial Services Market
Article 16. State Control over Concentration of Capital in
Financial Services Market
State control over the acquisition of assets or shares (participatory interest
in the authorised capital) of financial organisations shall be exercised in
the following cases:
the acquisition, as a result of one or several transactions, by a legal entity
or individual (group of persons) of over 20 percent of shares (participatory
interests in the authorised capital) of a financial organisation;
acquisition, as a result of one or several transactions relating to assignment
of the right of demand by a legal entity or individual (a group of persons)
the assets of a financial organisation whose amount exceeds the amount of assets
of a financial organisation established by the Government of the Russian Federation;
the acquisition by a legal entity or individual (group of persons), including
based on the contract for beneficial ownership, a joint operation agreement,
or agency contract, or any other transactions, of the rights allowing to control
the conditions of entrepreneurial activities of a financial organisation or
perform other functions of the executive body of such financial organisation;
setting up of financial organisation and changing of authorised capital of
the financial organisation;
consolidations, mergers of financial organisations.
Article 17. Procedure of Getting Preliminary Approval of
the Federal Antimonopoly Authority of Transactions on the Acquisition of Assets
or Shares (Participatory Interests in the Authorised Capital) of Financial
organisations
1. If the authorised capital of a financial organisation whose assets or shares
(participatory interests in the authorised capital) are acquired exceeds the
amount established by the Government of the Russian Federation, it is required
to get a preliminary approval of transactions specified in Article 16 of the
present Federal Law from the federal antimonopoly authority.
In cases of consolidation and merger of financial organisations the specified
requirements shall be fulfilled when the newly established? financial organisation
formed as a result of such consolidation or merger or at least one of the participants
of such consolidation or merger conforms to such requirements.
2. In order to get preliminary approval of transactions specified in Article
16 of the present Federal Law, participants of transactions shall submit to
the federal antimonopoly authority, in addition to the documents submitted
to the state registration body, a request for getting the specified preliminary
approval, information on primary activities and turnover for primary activities,
financial and economic reports submitted to the Central Bank of the Russian
Federation, federal executive bodies regulating the financial services market,
information on holdings, based on any grounds, of shares (participatory interests
in the authorised capital) of commercial organisations and membership in non-profit
organisations, and information on ownership of assets of such organisations.
The federal antimonopoly authority shall not be entitled to require that financial
organisations provide other documents and information.
The federal antimonopoly authority shall, within 30 days after receipt of the
documents specified in the present item, inform transactions participants in
writing of the decision it has taken on the preliminary approval of transactions
specified in Article 16 of the present Federal Law.
As required, the federal antimonopoly authority may extend the specified term,
however by no more than 15 days.
Article 18. Rejection of Request
The federal antimonopoly authority shall be entitled to reject the request
for getting preliminary approval for making transactions specified in Article
16 of the present Federal Law if its satisfaction may result in creation
or reinforcement of a dominant position of transactions participants and
restriction of competition in financial services market. The specified request
may be satisfied in case the requirements aimed at ensuring competition in
financial services market are complied with.
The specified requirements, as well as terms of their fulfilment, shall be
indicated in decision of the federal antimonopoly authority on preliminary
approval of transactions specified in Article 16 of the present Federal Law.
A request for getting preliminary approval of transactions specified in Article
16 of the present Federal Law may not be satisfied in case any reliable documents
and information that are significant for taking the specified decision are
missing.
In case the federal antimonopoly authority and the Central Bank of the Russian
Federation refuse to approve transactions specified in Article 16 of the present
Federal Law, and in other cases established by legislation of the Russian Federation,
participants of transactions shall be obliged, within three months after the
federal antimonopoly authority takes the decision specified in Item 2, Article
17 of the present Federal Law, to transfer its rights of participation in the
management of a financial organisation or assets or shares (participatory interests
in the authorised capital) of a financial organisation to third parties outside
the group of persons participating in the transaction, as well as comply with
other requirements of the federal antimonopoly authority aimed at restoration
of proper competitive environment in financial services market.
The federal antimonopoly authority may satisfy the request for preliminary
approval of transactions specified in Article 16 of the present Federal Law
in the following cases:
if participants of transactions, in case there is a risk of restriction of
competition in financial services market, prove that the positive effect of
such transactions, including the social and economic effect, will surpass negative
impact for financial services market;
if participants of transactions prove that holding of shares (participatory
interests in the authorised capital) of a financial organisation relates exclusively
to getting income from such shares (participatory interests in the authorised
capital). In this case it is allowed to hold such shares (participatory interests
in the authorised capital) only for one year from the moment of their acquisition
and exercise only those rights relating to their sale.
Article 19. Procedure of Notification of the Federal Antimonopoly
Authority of Transactions on Acquiring Assets or Shares (Participatory Interests
in the Authorised Capital) of Financial organisations
1. If the amount of authorised capital of a financial organisation whose assets
or shares (participatory interests in the authorised capital) are to be acquired
does not exceed the amount established by the Government of the Russian Federation,
financial organisations shall inform the federal antimonopoly authority of
making transactions specified in Article 16 of the present Federal Law within
30 days after such transactions are made.
In cases of a consolidation or merger of financial organisations the above
specified requirements concerning the authorised capital of financial organisations
shall be fulfilled when the newly established? financial organisation formed
as a result of such consolidation or merger or at least one of the participants
of such consolidation or merger conforms to such requirements.
2. Participants of transactions shall submit to the federal antimonopoly authority
a notification of transactions, information on primary activities and turnover
for primary activities, financial and economic reports submitted to the Central
Bank of the Russian Federation, federal executive bodies regulating the financial
services market, information on holdings, based on any grounds, of shares (participatory
interests in the authorised capital) of commercial organisations and membership
in non-profit organisations, and information on ownership of assets of such
organisations.
The federal antimonopoly authority shall not be entitled to require that participants
of transactions provide other documents and information.
The federal antimonopoly authority shall, after studying of the notification
and all required documents and no later than 30 days after receipt of all required
information, provided there are any indications that transactions of which
the authority was notified may lead to creation or reinforcement of a dominant
position of the financial organisation or restriction of competition, take
a reasonable decision on recognising the transactions lawful or restricting
competition in financial services market and forward such decision to the applicant.
3. As required, the federal antimonopoly authority may extend the term specified
in item 2, however by no more than 15 days.
4. In case the federal antimonopoly authority takes a decision, as provided
by Item 3 of the present Article, to extend the term of studying the notification
and all required documents, participants of transactions shall not have the
right, until an approval is given by the federal antimonopoly authority, to
participate in management of the financial organisation or dispose of relevant
assets or shares (participatory interests in the authorised capital) of the
financial organisation. At the same time, participants of the transaction shall
have the right to get income on such transactions before the federal antimonopoly
authority takes the specified decision and in cases provided for by federal
laws and decisions of the Central Bank of the Russian Federation.
5. In cases specified in Item 1 of the present Article participants of transactions
shall be entitled to request the federal antimonopoly authority for approval
of transactions specified in Article 16 of the present Federal Law in advance,
and the specified authority shall be obliged to review such request according
to established procedures.
6. The procedure of approval of transactions relating to the acquisition of
assets or shares (participatory interests in the authorised capital) of financial
organisations, as well as rights allowing to control the conditions of entrepreneurial
activities or perform other functions of the executive body of the financial
organisation having an impact on the status of the financial organisation in
financial services market, granted by the federal antimonopoly authority shall
comply with procedures established by the federal antimonopoly authority.
Article 20. Procedure of Settling Disputes Relating to Control
over Concentration of Capital in Financial Services Market
Transactions specified in Article 16 of the present Federal Law made in violation
of procedures established by the present Federal Law and leading to creation
or reinforcement of dominant positions of financial organisations and restriction
of competition in financial services market may be recognised invalid, by judicial
means, at the suit of the federal antimonopoly authority. In case participants
of the specified transactions fail, within the terms established by the federal
antimonopoly authority, to fulfil the latterˇ¦s requirements concerning restoration
of competitive environment in financial services market, such transactions
may also be recognised invalid, by judicial means, at the suit of the federal
antimonopoly authority.
Non-fulfilment of decisions made by the federal antimonopoly authority under
the present Federal Law shall be considered grounds for recognising the specified
transactions invalid, by judicial means, at the suit of the federal antimonopoly
authority.
Violation of requirements of the present Federal Law relating to getting preliminary
approval of the federal antimonopoly authority of making transactions specified
in Article 16 of the present Federal Law or notification specified in Article
19 of the present Federal Law shall empower the federal antimonopoly authority
to impose fines, as provided by the present Federal Law.
Chapter 7. State Control over Activities in the Field of Protection of Competition in Financial Services Market
Article 21. Federal Authorities in Charge of Antimonopoly Regulation in Financial Services Market
State policy in the field of development of competition and antimonopoly control
in financial services market shall be carried out by the federal antimonopoly
authority:
with the federal executive bodies regulating the securities market - for securities
market;
with the Central Bank of the Russian Federation - for the banking services
market;
with the federal executive body regulating the insurance services market -
for insurance services market;
with the federal executive bodies regulating other financial services market
- for other financial services market.
Article 22. Responsibilities and Functions of the Federal
Antimonopoly Authority in the Field of Protection of Competition in Financial
Services Market
1. The federal antimonopoly authority, on a joint basis with the Central Bank
of the Russian Federation, federal executive bodies regulating the financial
services market, shall be primarily responsible for:
promoting the development of competition in financial services market;
preventing, limiting, and eliminating unfair competition and eliminating abuse
of the dominant position by financial organisations in financial services market;
exercising state control over compliance with antimonopoly law in financial
services market.
2. The federal antimonopoly authority shall, taking into account the rules
established by the present Federal Law, fulfil the following basic functions:
forward to the Government of the Russian Federation proposals regarding questions
of improving antimonopoly law and other normative legal acts on the protection
of competition in financial services market and their practical application,
as well as opinions regarding draft laws and other normative legal acts affecting
the functioning of financial services market and the development of competition;
give recommendations to the Central Bank of the Russian Federation, federal
executive bodies, executive bodies of constituents of the Russian Federation
and local authorities relating to the implementation of measures directed towards
development of competition in financial services market;
control compliance with antimonopoly law and other normative legal acts on
the protection of competition in financial services market when making agreements
and introducing concerted practices of financial organisations;
control consolidations and mergers of financial organisations and acquisition
of rights, assets or shares (participatory interests in the authorised capital)
of financial organisations;
identify violations of antimonopoly law and other normative legal acts on the
protection of competition in financial services market.
Article 23. Powers of the Federal Antimonopoly Authority
The federal antimonopoly authority shall have the right to:
issue to financial organisations legally binding orders as to ceasing violations
of? antimonopoly law and other normative legal acts on the protection of competition
in financial services market and (or) eliminating their consequences, as to
restoration of initial situation, as to cancellation or amendment of contracts
which are contrary to antimonopoly law and other normative legal acts on the
protection of competition in financial services market, as to the conclusion
of contracts with another entity, and as to the transfer to the federal budget
of profits received as a result of violation of antimonopoly law and other
normative legal acts on the protection of competition in financial services
market;
submit to the Government of the Russian Federation, the Central Bank of the
Russian Federation proposals concerning cancellation or suspension of normative
and other legal acts adopted by federal executive bodies, the Central Bank
of the Russian Federation, and concerning cancellation or amendment of agreements
or concerted practices arranged by the latter which are contrary to antimonopoly
law and other normative legal acts on the protection of competition in financial
services market;
submit to executive bodies of constituents of the Russian Federation and local
authorities orders on cancellation or amendment of the normative legal acts
adopted by them, and on cancellation or amendment of agreements or concerted
practices arranged by them which are contrary to antimonopoly law and other
normative legal acts on the protection of competition in financial services
market;
submit to authorities issuing licences for operations in financial services
market a request for the cancellation of licenses of financial organisations
violating antimonopoly law and other normative legal acts on the protection
of competition in financial services market;
make decisions concerning the imposition of fines on financial organisations
and administrative sanctions on directors of such financial organisations,
on citizens, including individual entrepreneurs, as well as on officials of
federal executive bodies, executive bodies of constituents of the Russian Federation,
and local authorities for the instances of violation of antimonopoly law and
other normative legal acts on the protection of competition in financial services
market;
file an application to court or arbitration court concerning violations of
antimonopoly law and other normative legal acts on the protection of competition
in financial services market, including applications for recognising contracts
that contravene antimonopoly law and other normative legal acts on the protection
of competition in financial services market invalid, in whole or in part, and
applications for mandatory conclusion of a contract with another entity, and
participate in legal or arbitral proceedings relating to the application and
violation of antimonopoly law and other normative legal acts on the protection
of competition in financial services market;
submit to relevant law enforcement authorities petitions on violations of antimonopoly
law and other normative legal acts on the protection of competition in financial
services market, as well as documentation for deciding a question of initiation
of a criminal procedure based on indications of crimes connected with violation
of antimonopoly law and other normative legal acts on the protection of competition
in financial services market;
establish the fact of a dominant position of economic entities in financial
services market;
establish facts of abuse of the dominant position by financial organisations,
violation of bans on agreements and concerted practices, unfair competition,
as well as qualify the actions of financial organisations as violating antimonopoly
law and other normative legal acts on the protection of competition in financial
services market;
publish, including on a joint basis with the Central Bank of the Russian Federation,
federal executive bodies regulating the financial services market, normative
acts, recommendations and guidelines on the protection of competition in financial
services market, including the specified normative acts, recommendations and
guidelines for individual types of financial organisations;
give explanations, including on a joint basis with the Central Bank of the
Russian Federation, federal executive bodies regulating the financial services
market, on the issues of application of antimonopoly law and other normative
legal acts on the protection of competition in financial services market;
exercise other powers envisaged by the legislation of the Russian Federation.
Article 24. Coordination of Activities of the Federal Antimonopoly
Authority and Federal Executive Bodies Regulating? the Financial Services Market,
the Central Bank of the Russian Federation
1. Coordination of activities of the federal antimonopoly authority and federal
executive bodies regulating the financial services market, and the Central
Bank of the Russian Federation shall be based on the functional assignment
of responsibilities, specialisation and division of responsibility established
by the legislation of the Russian Federation and the present Federal Law.
2. Federal executive bodies regulating the financial services market, the Central
Bank of the Russian Federation shall be obliged to submit, upon request of
the federal antimonopoly authority, normative and other legal acts passed by
the former, agreements they made with financial organisations, as well as information
required for analysing and controlling the competitive environment in financial
services market .
Article 25. Right of Access to Information
Employees of the federal antimonopoly authority duly empowered by the latter
for the purposes of fulfilling their official duties shall have the right
of unimpaired access to federal executive bodies, the Central Bank of the
Russian Federation, executive bodies of constituents of the Russian Federation
and local authorities, as well as to financial organisations and their unions,
and to other institutions and organisations, and inspection, based on a written
request, of required documents and information, provided the specified employees
do not disclose official, trade and commercial secrets.
Militia authorities shall be obliged to render practical assistance to officials
of the federal antimonopoly authority while the latter perform their official
duties and ensure that such officials have unimpaired access to required documents
and information.
Article 26. Duties with Respect to Provision of Information
to the Federal Antimonopoly Authority
Federal executive bodies, the Central Bank of the Russian Federation, executive
bodies of constituents of the Russian Federation and local authorities (and
their officials), financial organisations (their directors), citizens, including
individual entrepreneurs, shall be obliged to submit to the federal antimonopoly
authority reliable documents, give written and oral explanations and provide
other information the federal antimonopoly authority needs for performing its
lawful activities, except information constituting banking secrecy.
Article 27. Duties and Liabilities of the Federal Antimonopoly
Authority Regarding Compliance with Commercial Secrecy
Information constituting a commercial secret which has been received by the
federal antimonopoly authority shall not be subject to disclosure.
If officials of the federal antimonopoly authority disclose information constituting
a commercial secret, the specified officials shall be held liable for such
disclosure, as provided by the legislation of the Russian Federation and according
to the procedure established by the legislation of the Russian Federation.
Losses incurred by the financial organisation shall be subject to reimbursement
in accordance with the civil law of the Russian Federation.
Chapter 8. Liability for the Violation of Antimonopoly
Law and Other Normative Legal Acts on the Protection of Competition
in Financial Services Market
Article 28. Mandatory Nature of Decisions and Orders of the
Federal Antimonopoly Authority
1. In case of violation of antimonopoly law and other normative legal acts
on the protection of competition in financial services market federal executive
bodies,? executive bodies of constituents of the Russian Federation and local
authorities (and their officials), financial organisations (their directors),
citizens, including individual entrepreneurs, shall be obliged, subject to
decisions and orders of the federal antimonopoly authority, to cease violating
antimonopoly law and other normative legal acts, restore the initial situation,
cancel or amend a contract, make a contract with another entity, abolish the
act contradicting the antimonopoly law and other normative legal acts on the
protection of competition in financial services market, transfer to the federal
budget the profits received as a result of violation of antimonopoly law and
other normative legal acts on the protection of competition in financial services
market, fulfil other actions envisaged by decisions and orders of the federal
antimonopoly authority.
2. In case of violation of antimonopoly law and other normative legal acts
on the protection of competition in financial services market the federal antimonopoly
authority shall have the right, by administrative means, to impose fines and
give notices in accordance with the legislation of the Russian Federation.
Article 29. Types of Liabilities for Violation of Antimonopoly
Law and Other Normative Legal Acts of the Protection of Competition in Financial
Services Market
Officials of federal executive bodies,? executive bodies of constituents of
the Russian Federation and local authorities, financial organisations (their
directors), citizens, including individual entrepreneurs, shall bear civil,
administrative, criminal and other liability in accordance with the legislation
of the Russian Federation for unlawful acts violating antimonopoly law and
other normative legal acts on the protection of competition in financial services
market.
Chapter 9. Procedure of Adoption, Appealing, and Execution of Decisions and Orders of the Federal Antimonopoly Authority
Article 30. Grounds for Consideration of Cases on Violations
of Antimonopoly Law and Other Normative Legal Acts on the Protection of Competition
in Financial Services Market by Federal Antimonopoly Authority
1. The federal antimonopoly authority shall consider cases on violation of
antimonopoly law and other normative legal acts on the protection of competition
in financial services market, adopt decisions and issue orders on such cases
within its competence.
Grounds for consideration of cases on violations of antimonopoly law and other
normative legal acts on the protection of competition in financial services
market shall be applications of the Central Bank of the Russian Federation,
federal executive bodies, executive bodies of constituents of the Russian Federation
and local authorities, financial organisations, citizens, including individual
entrepreneurs, and recommendations of the procurator.
Cases on violation of antimonopoly law and other normative legal acts on the
protection of competition in financial services market may be considered by
the federal antimonopoly authority upon its own initiative.
2. Applications specified in Item 1 of the present Article shall be submitted
to the federal antimonopoly authority in writing and accompanied by documents
confirming violations of antimonopoly law and other normative legal acts on
the protection of competition in financial services market.
3. Proceedings on administrative offences envisaged by the present Federal
Law, as well as enforcement of resolutions on imposing administrative sanctions
under such cases shall be in compliance with the procedures established by
the Code on Administrative? Offences of the Russian Federation.
Procedure of considering cases on violations of antimonopoly law and other
normative legal acts on the protection of competition in financial services
market shall be governed by the rules approved by the federal antimonopoly
authority and coordinated, respectively, with the Central Bank of the Russian
Federation, federal executive bodies regulating the financial services market.
Article 31. Procedure of Appealing Decisions, Orders of the
Federal Antimonopoly Authority
1. Federal executive bodies, executive bodies of constituents of the Russian
Federation and local authorities (their officials), financial organisations
(their directors), citizens, including individual entrepreneurs shall have
the right to file an application to court or arbitration court concerning cancellation,
in whole or in part, of decisions and orders of the federal antimonopoly authority.
2. Filing an application specified in Item 1 of the present Article shall suspend
decisions and orders of the federal antimonopoly authority for the period of
consideration of the specified application by court or arbitration court, until
the court or arbitration award comes into force.
Decisions and orders of the federal antimonopoly authority may be appealed
within the period of limitation in accordance with the legislation of the Russian
Federation.
Article 32. Procedure of Enforcement of Decisions and Orders
of the Federal Antimonopoly Authority
1. Decisions and orders of the federal antimonopoly authority shall be executed
within the terms established therein. Non-execution of the specified decisions
and orders within the established terms shall result in liabilities envisaged
by the legislation of the Russian Federation and the present Federal Law.
In case of non-execution of decisions and orders on the cancellation or amendment
of an act adopted in violation of the antimonopoly law and other normative
legal acts on the protection of competition in financial services market, on
the restoration of situation that existed before the specified violation, the
federal antimonopoly authority shall be entitled to file an application to
arbitration court on cancellation of such act, in whole or in part, or on enforcement
to restore the situation that existed before the specified violation.
In case of non-execution of decisions and orders of the federal antimonopoly
authority on the amendment or cancellation of a contract contravening antimonopoly
law and other normative legal acts on the protection of competition in financial
services market or on making a contract with another entity the federal antimonopoly
authority shall be entitled to file to court or arbitration court a suit on
recognising the contract invalid, in whole or in part, or on enforcement to
make a contract.
In case of non-execution of decisions of the federal antimonopoly authority
on the transfer to the federal budget of profits received as a result of violation
of antimonopoly law and other normative legal acts on the protection of competition
in financial services market the federal antimonopoly authority shall be entitled
to file to court or arbitration court a suit on recovering of illegitimate
profit to the federal budget.
Chapter 10. Final Provisions
Article 33. Coming into Force of the Present Federal Law
1. The present Federal Law shall come into force upon expiry of six months
from the day of its official publication.
2. It is proposed submit the present Federal Law to the President of the Russian
Federation and authorise the Government of the Russian Federation to bring
its normative legal acts in compliance herewith.
President of the Russian Federation ???????? B.Yeltsyn
Moscow, Kremlin
23 June 1999
No. 117-FZ