KROUFR Regulatory Entity
The Financial Market Participants Relations Regulation Commission, KROUFR, is a non-profit regulatory organisation. Its activities are intended for developing services for the Russian participants in financial markets. In addition, it’s an organisation that directly regulates relations between participants in financial markets.
The KROUFR was founded in 2003 when Russia needed an organisation to provide the regulatory framework of the International Financial market. It is governed by the Commission, which has the President as its head. It also has a Board of Directors responsible for granting licenses to eligible candidates.
Table of contents
History of KROUFR
Approximately thirty years ago, the development of trading on the financial market started in Russia. Large numbers of traders and brokers were found to conduct business in the finance industry. Many of them turned out to deceive their clients. More than ninety per cent of the brokers were dishonest to their clients.
There were no rules or regulations at the legislative level for these brokers.
This did not sit well with the OTC firms. They wanted financial trades to be at the level of meaningful business and be reasonable for all market participants. For this purpose, at the very beginning of the new millennium, the KROUFR regulator was created. Thus, the Financial Market Participants Relations Regulation Commission was formally established in 2003.
Trade with One of Our Top 3 Regulated Brokers. Try their Risk-Free Demo Account!
Broker Verified
Broker Verified
Broker Verified
Aims of KROUFR
The Financial Market Participants Relations Regulation Commission aims to coordinate relations between Russian participants in financial markets. The vital aim of KROUFR is to help minimise the risks of implementing certain rules in financial activities. Additional objectives include:
- To improve and form the regulatory framework operating financial relations.
- To assist in the formation of bills and legislation related to the International Financial markets.
- To implement rules and standards for conducting trade in international financial markets.
Activities of KROUFR
The Financial Market Participants Relations Regulation Commission has activities that provide supervision to the regulation of financial markets. These are the main activities of KROUFR:
- Resolution of issues and disagreements of participants in international financial markets.
- Certification of participants in international financial markets
- Ensuring the fulfilment of the obligations of certified participants in international financial markets.
- Advertising and giving information.
Governance
The working body of the Financial Market Participants Relations Regulation Commission is the Arbitration Commission. The Arbitration Commission strives to help its members by:
- Creating the activities of standardisation and certification.
- Resolving issues and disputes.
- Protecting the rights and interests of both its members and their clients.
- The head of the Commission is the President, who is elected by the members of the organisation. Mainly, KROUFR is governed by a General Meeting with the presiding President.
- The Commission also has a Board of Management who has the authority over KROUFR. The Board of Directors have executives of the member companies. This includes the following:
- Representatives of forex companies
- Representatives of the banking industry
- Traders
- Representatives of the financial industry.
Legislative framework
There were no provisions in the legislation of Russia which would help in influencing the conduct of honest activities by brokerage companies. As a result, it turned out that the funds of clients of various brokers were not under reliable protection. Thus, the Financial Market Participants Relations Regulation Commission was created as a regulatory body.
The establishment of KROUFR helped in the protection of the financial assets of its members and their clients. In addition, it plays an important role in improving the legislative framework of the International financial markets.
Responsibilities of KROUFR
The Financial Market Participants Relations Regulation Commission serves its role as a regulating authority of Russia. The Commission’s main function is to regulate relations among the Russian participants of the international finance industry. In addition, the Commission has several obligations to the participants in the foreign exchange market.
The main responsibilities are:
- To supervise connections between various market participants.
- To monitor conditions and coordination of the activities of participants in international financial markets.
- To assist in minimising the risks of participants in international financial markets.
- To assist in the formation of a regulatory framework for all the participants of the financial markets.
- To create conditions for the transparency of the OTC market for traders.
- To reduce the risks of fraud and several unlawful activities in the financial market.
- To help in the resolution of conflicts that occur among traders and brokerage firms.
- To improve the legislative and regulatory framework of international financial markets.
- To provide analytical coverage of services and principles of work in international financial markets.
- To study trends and prospects for the development of international financial markets.
- To introduce new technologies and provide high-quality services to its clients.
- To boost user confidence in various financial companies.
- To deliver clients reliable information regarding changes in the rules and innovations in the finance industry.
- To create an insurance fund for members of KROUFR.
KROUFR licensing
Brokerage companies can become a part of the Financial Market Participants Relations Regulation Commission by fulfilling some requirements. They are required to do the following:
- Submit an application
- Pay a membership fee
- Provide a list of necessary documents
The applicants who meet the requirements are considered by the board members. The application is reviewed by them and approved in the general meeting of the board. If the candidate is authorised, it is granted a license to operate in Russia.
File a complaint
The brokerage firms licensed under KROUFR, which deceive the public or are dishonest with their clients, can be reported. These members can be reported by filing a complaint to the Financial Market Participants Relations Regulation Commission.
To file a complaint with KROUFR, the client must do the following:
- Download a specialised form for filling, which can be found on the official website of the Commission.
- In the form, they should describe the predicament in detail.
- They should provide evidence as no action can be taken on mere assumptions.
Bottom line
To sum it all, the KROUFR was founded to protect the participants performing transactions in the International Finance Industry. The Financial Market Participants Relations Regulation Commission aims to reduce the risk of fraud and illegal activities in the financial markets. For this purpose, rules are developed, and the activities of its members are monitored.
Heinrich is a forex and CFD enthusiast with a passion for writing good informative quality content. He strives to showcase the best forex brokers in Africa. Join him on his Journey!
Content Writer | Market Analyst
Relevant Posts
CBCS Regulatory Entity
CBCS is the "Central Bank of Curaçao and St. Maarten (the Central Bank)." The CBCS…
NAUFOR Regulatory Entity
The National Association of Stock Market Participants is an industry-wide, independent self-regulatory organisation. It is…
PFSA Regulatory Entity
The Polish Financial Supervision Authority is known as PFSA. However, it is commonly known as…
LFSA Regulatory Entity
Labuan Financial Services Authority (Labuan FSA) is responsible for providing financial services in Labuan and…
KNF Regulatory Entity
In Poland, the Polish Financial Supervision Authority is in charge of the supervision of the…
NBRB Regulatory Entity
NBRB Regulatory Entity (National Bank of the Republic of Belarus) is the Republic of Belarus'…
FSMA Regulatory Entity
The Financial Services and Markets Authority is the main agency for financial regulation in Belgium. As a…
SVGFSA Regulatory Entity
As of 2012, Financial Services Authority St. Vincent and the Grenadines operates under an Act…
FSC Korean Regulatory Entity
Korean FSC Regulatory Entity (The Financial Services Commission -Korea) is a government-run organisation responsible for…
MFSA Regulatory Entity
Malta Financial Services Authority- MFSA is the main regulatory body of Malta. It was established…
Login
Register