Financial Markets: Increasing Complexity, Maintaining Stability

3–5 July 2019, ST. PETERSBURG


Programme


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5 July

10:00–11:30

Presidential Library,
Plenary session hall (second floor)
Plenary session II Plenary sessions Self-Regulation, Ethics, and Conduct Supervision: Challenges for the Next Three Years Self-regulation on the financial market is an effective means of determining requirements for professional standards, implementing ethical codes of...
Self-regulation on the financial market is an effective means of determining requirements for professional standards, implementing ethical codes of conduct, and applying best business integrity practices. This session will focus on approaches to implementing professional and ethical standards which take into account the specific aspects of working in the financial market. Participants will also discuss the role of the regulator in drafting and monitoring standards, as well as the feasibility of self-regulation in the banking sector. What innovations should we expect to see in self-regulation over the coming three years, during which time the Bank of Russia will be implementing its new financial market development strategy?

The lack of a systemic approach to establishing a corporate culture in the financial market is one of the reasons why trust in financial institutions has fallen. The Bank of Russia has drafted a Code of Integrity to serve as the foundation for applying ethical standards in the financial industry. What are the benefits and costs of implementing the code in the eyes of the financial industry? How can the corporate culture of the financial sector be transformed? Is the market prepared for principle-based regulation? Are the Bank of Russia’s efforts to focus on improving integrity among financial market players and employees sufficient?

This session will feature a dialogue between the regulator and the market on developing and improving the effectiveness of conduct supervision. How can conduct supervision be made into a strategic development tool for financial market participants aimed at implementing the best behavioural models? Could systemic violations of consumer rights or malpractice lead to harsh consequences, even if the company is in good financial health? International experience will also come under examination, particularly non-standard approaches to behavioural oversight, including measures to counter the misselling of financial products.
Moderator
Sergey Shvetsov, First Deputy Governor, Bank of Russia
Speakers
Tiago Aguiar, Deputy Head of the Banking Conduct Supervision Department, Bank of Portugal
Georgy Luntovskiy, President, Assoсiation of Banks of Russia
Mikhail Mamuta, Head, Service for Consumer Protection and Financial Inclusion, Bank of Russia
Igor Yurgens, President, All-Russian Insurance Association
Front row participants
Sergey Belyakov, President, Association of Non-State Pension Funds; Chairman of the Presidium, The Retail Companies Association; Chairman of the Management Board, National Association of Investment and Development Agencies; Managing Director, InfraONE
Alexander Solomkin, Director, Self-Regulatory Organisation of Credit Consumer Cooperatives ‘Cooperative Finances’
Elena Stratyeva, Director, Russian Microfinance Centre (RMC); Director, Microfinance and Development Union of Microfinance Organisations
Alexey Timofeev, President, Russian National Association of Securities Market Participants (NAUFOR)
Konstantin Ugryumov, President, National Association of Non-Governmental Pension Funds
Andrey Yazykov, Leading Researcher, Department of Insurance and Social Economics, Financial University under the Government of the Russian Federation
Vasily Zablotsky, President, Self-Regulatory Organisation ‘National Finance Association’

11:30–11:50

Coffee break

11:50–13:00

Hotel Astoria, Conference hall 6 (first floor)
Parallel sessions Banks Session 1.5: Infrastructure Projects for the Financial Market: Initial Results and Prospects A range of infrastructure projects for the financial market are currently being implemented in partnership with stakeholders. These include a remot...
A range of infrastructure projects for the financial market are currently being implemented in partnership with stakeholders. These include a remote biometric identification platform, a fast payment system, the Digital Profile infrastructure, and the Marketplace and Masterchain platforms.
These projects are at various stages of development, ranging from pilot versions to fully commercial products. However, they are all going to affect banks’ business models, as well as the financial market as a whole. This session will examine the results of launching these projects and the next steps in their development. Participants will also have an opportunity to present their questions to the speakers.
Moderator
Olga Skorobogatova, First Deputy Governor, Bank of Russia
Speakers
Oliver Hughes, Chairman of the Management Board, Tinkoff Bank
Vladimir Komlev, Chairman, Chief Executive Officer, National Payment Card System
Alexey Panferov, Vice Chairman of the Management Board, Sovcombank
Ilya Polyakov, Chairman of the Management Board, Rosbank
Dmitry Rudenko, President, Chairman of the Management Board, Post Bank
Vladimir Verkhoshinskiy, Chief Executive Officer, Member of the Board, Alfa-Bank

11:50–13:00

Angleterre Hotel, Conference hall 7 (first floor)
Macroeconomics and Monetary Policy Session 2.5: Accelerating Economic Growth in Russia Only a few countries at medium or high stages of development can deliver a steady acceleration in economic growth. Meanwhile, Russia has set such s...
Only a few countries at medium or high stages of development can deliver a steady acceleration in economic growth. Meanwhile, Russia has set such steady acceleration as a goal. Panel discussion participants will talk about drivers and enablers of quicker growth in Russia ranging from demographic trends, investments, and productivity to global value chains, investment climate, and growth incentives both at company and employee levels.
Moderator
Alexander Morozov, Director, Research and Forecasting Department, Bank of Russia
Speakers
Gabriel Di Bella, Resident Representative for Russia, IMF
Vladimir Gimpelson, Professor, Director of the Centre for Labour Market Studies, National Research University Higher School of Economics
Alexander Kalinin, President, All-Russian Non-Governmental Organization of Small and Medium-Sized Businesses OPORA RUSSIA
Nikolai Kashcheev, Director, Analysis Department, Promsvyazbank
Konstantin Tserazov, Director of the Investment Business Department, Bank “Otkririe”

11:50–13:00

Presidential Library,
Conference hall 3 (second floor)
Financial Market Professionals Session 3.5: Investment Consulting: Initial Results Legislative changes that came into effect in December 2018 have helped shape regulation for a new sector of the financial market: investment consul...
Legislative changes that came into effect in December 2018 have helped shape regulation for a new sector of the financial market: investment consulting. Proposed topics for discussion during this session include the initial results of introducing the new legislation, along with required adjustments to the regulatory framework in light of established business practices. This will encompass an examination of a draft of the basic standard for investment consulting, which is designed to provide a detailed description of this kind of service. Another relevant issue – the launch of new products by market participants on the basis of the new legislation – will also be covered, as will changes to business models stemming from legislative developments. Taxation of investment advisers, including those who are self-employed and possibly also work in other fields, will also be an important area of discussion. The procedure and practice of accrediting automated consulting programmes will also be considered.
Moderator
Alexey Timofeev, President, Russian National Association of Securities Market Participants (NAUFOR)
Speakers
Vladimir Chistyukhin, Deputy Governor, Bank of Russia
Vladislav Kochetkov, President and Chairman of the Management Board, Finam Group
Vasily Zablotsky, President, Self-Regulatory Organisation ‘National Finance Association’
Mikhail Znamensky, Wealth Management Head, Citi Russia

11:50–13:00

Presidential Library,
Conference hall 1 (first floor)
Collective Investments: Main Challenges and Areas of Growth Session 4.5: Growth of Non-State Pensions This session will cover key areas for developing the non-state pension provider network.The proposal to introduce a system of guaranteeing pension ...
This session will cover key areas for developing the non-state pension provider network.
The proposal to introduce a system of guaranteeing pension reserves for non-state pension providers will come into focus.
In addition, leading market experts will share their views on ways to expand the investment opportunities of private pension funds, and look at ways of introducing new requirements related to investing pension reserves.
Special attention will be paid to the need to increase the transparency of private pension fund operations, and the implementation of new information disclosure requirements.
Moderator
Konstantin Ugryumov, President, National Association of Non-Governmental Pension Funds
Speakers
Larisa Gorchakovskaya, General Director, VTB Pension Fund
Anatoly Milyukov, General Director, BLAGOSOSTOYANIE Pension Fund
Dmitry Scrivanov, Deputy, State Duma of the Federal Assembly of the Russian Federation
Anton Shpilev, First Deputy General Director, NPF GAZFOND Pensionnyye Nakolpeniya
Yury Voronin, Chief Financial Commissioner for Consumer Rights, Financial Ombudsman Administration

11:50–13:00

Presidential Library,
Conference hall 4 (third floor)
Microfinance Session 5.5: Partnership between Credit and Microfinance Organisations: Benefits and Threats to Business and Consumers This session will cover the partnership between credit and microfinance organisations, and, above all, the development of microfinance companies th...
This session will cover the partnership between credit and microfinance organisations, and, above all, the development of microfinance companies that are part of banking groups. Microfinance institutions of this kind have access to cheaper funding, use advanced technologies, and apply high standards of customer service.
Participants will assess the impact that the development of such companies has on the microfinance market as a whole. Speakers will present their views on the potential benefits and threats for businesses and customers associated with incorporating microfinance organisations in banking groups.
Another important topic for discussion will be the customers’ interests: whether customers ultimately benefit from partnerships between credit and microfinance institutions, and how such partnerships affect the accessibility and affordability of financial products.
Moderator
Alexey Simanovskiy, Adviser to the Governor, Bank of Russia
Speakers
Sergey Chetverikov, Managing Director – Director of the Office, Lending Products and Processes Division, Sberbank
Sergey Kotlyarenko, General Director, Microcredit Company ‘Kupi Ne Kopi’
Arsen Lyametov, General Director, Microfinance Company ‘T-Finance’
Dmitry Peshnev-Podolskiy, Chairman of the Board, BCS Bank

11:50–13:00

Hotel Astoria, Conference hall 5 (first floor)
Insurance Market Session 6.5: Life Insurance: Prospects Realising the potential of the life insurance market, strengthening the role of the social function of life insurance, improving the quality of sal...
Realising the potential of the life insurance market, strengthening the role of the social function of life insurance, improving the quality of sales and customer satisfaction: these are the essential tasks that can be fulfilled with the active involvement of all parties.
This discussion will focus on the potential for the development of this segment, the prospects for maintaining growth rates, evaluating the state of personal life insurance and sales through banks, trends in the development of universal life insurance, the importance of introducing unit-linked life insurance, business conduct standards, and the impact of digital technologies.
Moderator
Maksim Chernin, Chairman, Committee on Insurance against Accidents and Development of Life Insurance, All-Russian Insurance Association
Speakers
Maxim Danilov, Vice President, All-Russian Insurance Association
Alexey Ermakov, Head of Segment and Non-Credit Products Development Directorate, Alfa Bank
Alexey Rudenko, General Director, IC Rosgosstrakh Life
Ilya Smirnov, Deputy Director, Insurance Market Department, Bank of Russia

11:50–13:00

Presidential Library,
Conference hall 2 (first floor)
Cross-sector sessions Session 7.5: Cyber Risks and Cyber Threats: Managing, Regulating, Insuring The rapid development of new digital tools and technologies, coupled with their extensive use on financial markets, has effectively reshaped the di...
The rapid development of new digital tools and technologies, coupled with their extensive use on financial markets, has effectively reshaped the digital environment. This has given rise to new challenges, particularly with regard to heightened risks. These risks are primarily related to threats to operations, information threats (cyber risk), and threats related to the growing interdependence between market participants due to the use of disruptive technologies. It is clear that all national regulators are, in one way or another, facing the need for specialised regulation in the field of information security risk management. One of the most pressing issues is evaluating the risk landscape and transforming risk management systems in order to tackle the most pressing issues in the new digital economy.
Moderator
Ilya Sachkov, CEO and founder, Group-IB
Speakers
Alexander Baranov, Deputy Director General, Chief Scientific Innovation Center, Federal Tax Service of Russia
Matvey Gering, Director for Central and Eastern Europe, SWIFT
Stanislav Pavlunin, Vice President, Director of Security, Post Bank
Boris Simis, Deputy CEO, Positive Technologies
Artem Sychev, First Deputy Director, Information Security Department, Bank of Russia

13:00–14:30

Lunch

14:30–15:40

Hotel Astoria, Conference hall 6 (first floor)
Parallel sessions Banks Session 1.6: Macroprudential Policy: Aims, Means, Results Macroprudential policies became widespread throughout the world following the 2008 financial crisis.The focus on systemic risk rather than risks bo...
Macroprudential policies became widespread throughout the world following the 2008 financial crisis.
The focus on systemic risk rather than risks borne by individual market participants required the development of new tools. However, assessing how effective they are at strengthening financial stability is still a matter of heated debate among regulators. The Bank of Russia actively employs macroprudential policy instruments to reduce systemic risks in the financial system, but how do these measures affect banks, their business models, and strategies?
The latest global trends in applying macroprudential tools and evaluating their efficiency will also be examined.
Moderator
Elizaveta Danilova, Director, Financial Stability Department, Bank of Russia
Speakers
Patrizia Baudino, Senior Advisor, Financial Stability Institute, Bank for International Settlements
Alexander Danilov, Senior Director, Financial Institutions, Fitch Ratings
Dzhangir Dzhangirov, Senior Vice President, Sberbank
Ilya Polyakov, Chairman of the Management Board, Rosbank

14:30–15:40

Angleterre Hotel, Conference hall 7 (first floor)
Macroeconomics and Monetary Policy Session 2.6: The Implications of the Broad Regional Diversity for the Monetary Policy Decision-Making Open borders and an increasing resource mobility in the modern world make the economic policy-driven analysis ever more global. The bottom-up analy...
Open borders and an increasing resource mobility in the modern world make the economic policy-driven analysis ever more global. The bottom-up analysis can help solve many economic puzzles and grasp nascent trends that later capture the whole system. Outcomes of regional analysis are used in decision-making in the Bank of Russia and many central banks both in large and relatively small economies. Which questions can regional analysis answer? Determining and delivering on the monetary policy target – is it sufficient to track country-average inflation or should its distribution by region, border indicators and price divergence risks be taken into account? What are the main determinants of the inflation diversity? Such information is helpful in decision-making on monetary policy, macroprudential and public policy as a whole.
Moderator
Natalia Volchkova, Assistant Professor of Economics, New Economic School (NES)
Speakers
Patricia Mosser, Director of the MPA Programme in Economic Policy Management, School of International and Public Affairs, Columbia University
Elina Ribakova, Deputy Chief Economist, Economic Research Department, Institute of International Finance
Andrey Shulgin, Economic Adviser, Volga-Vyatka Main Branch, Bank of Russia
Andrey Sinyakov, Deputy Director, Research and Forecasting Department, Bank of Russia

14:30–15:40

Presidential Library,
Conference hall 3 (second floor)
Financial Market Professionals Session 3.6: The Role of Infrastructure in Building a Trusting Environment and Simplifying Investor Access to the Financial Market in the Era of Digitalisation Investment is vital for economic growth. One source of investment is household savings, and as such we need to increase public interest in the fina...
Investment is vital for economic growth. One source of investment is household savings, and as such we need to increase public interest in the financial markets and improve financial literacy, and, most importantly, create a trusting environment in the financial market.

This environment should minimise the risks of fraud and violation of investor rights, and also provide investors with modern online tools to access the market, up-to-date and verified information about the tools and assets owned by investors, and improve investment returns.

The roundtable participants will share their experience, vision and expectations regarding the role of the future post-trading infrastructure in creating a trusting environment, as well as the prospects of new digital technologies for investors in the Russian market.
Moderator
Eddie Astanin, Chairman of the Executive Board, National Settlement Depository
Special guests
Elena Chaikovskaya, Advisor to the First Deputy Governor Sergey Shvetsov, Bank of Russia
Maxim Getsman, Deputy Director General for Core Business, VTB Registrar
Maxim Grigoriev, Executive Partner, Gartner
Natalia Smirnova, Independent financial advisor

14:30–15:40

Presidential Library,
Conference hall 1 (first floor)
Collective Investments: Main Challenges and Areas of Growth Session 4.6: Risk-Management Tools in Collective Investments: The Abilities of Managers and Expectations of Investors This session will examine client preferences in the closed-end fund segment of the collective investment market, and how these preferences have cha...
This session will examine client preferences in the closed-end fund segment of the collective investment market, and how these preferences have changed since 2014.
Leading market experts will share their views on the extent to which investors are prepared for risky strategies in closed-end mutual funds.
Participants will also review additional options outlined in the law on investment funds which allow funds to act as universal platforms for project financing.
Special attention will be paid to closed-end investment funds as tools for retail investors, and what these funds can offer for development projects.
Moderator
Vadim Khrapun, Partner, PwC Consulting
Speakers
Vitaly Balanovich, Managing Partner, TRINFICO Investment Group
Ekaterina Chernykh, Deputy CEO, Managing Director, Sberbank Asset Management
Edward Golosov, Head, BCS Capital, Board Member, Deputy President – Chairman of the Board for Investment and Insurance Business, FG BCS
Evgeny Postnikov, Head of Real Estate and Structured Funds Department, VTB Capital Investment Management

14:30–15:40

Presidential Library,
Conference hall 4 (third floor)
Microfinance Session 5.6: Consumer Fraud and Borrower Misconduct: Taking Effective Countermeasures Participants will address issues faced by microfinance institutions regarding protection from customer fraud. Mechanisms to counter unfair practice...
Participants will address issues faced by microfinance institutions regarding protection from customer fraud. Mechanisms to counter unfair practices, as well as ways to minimise the damage to companies arising from customer misconduct, will also be considered.
Participants will examine new fraud schemes related to the development of remote sales channels, and share their experience in using modern technologies to manage those risks.
Discussions will also cover the development of anti-fraud initiatives, identifying triggers in client behaviour, and new tools for identifying and assessing borrowers.
Moderator
Victor Klimov, Financial Ombudsman in Insurance
Speakers
Alexander Akhlomov, Chief Product Officer and Co-Founder, JuicyScore
Lyudmila Gribok, Chairman of the Board, Regional Association of Pawnshops
Ivan Merinov, CEO, SMSFINANCE Group
Stanislav Romanchuk, Head of the Operational Search Unit, Russian MIA General Administration for St. Petersburg and the Leningrad Region

14:30–15:40

Presidential Library,
Conference hall 2 (first floor)
Cross-sector sessions Session 7.6: Compliance as a Part of Corporate Culture Large customer-focused financial companies that employ a risk-based approach approach to management invariably make compliance an important part of...
Large customer-focused financial companies that employ a risk-based approach approach to management invariably make compliance an important part of their corporate culture.
Abiding by the law and being guided by high ethical standards and integrity should be beneficial to all participants in the financial market.
Ultimately, this approach helps secure the integrity and attractiveness of the national financial market, enhances consumer protection, and maintains public confidence in financial institutions.
This session will focus on the main trends affecting the development of compliance in Russia; the role of compliance in building a corporate culture; regulatory arbitrage in compliance, including regulation in the Russian Federation as well as international standards and regulatory norms; and specific factors affecting the motivation of employees to observe a culture of compliance.
Moderator
Valery Lyakh, Director, Department for Countering Malpractice, Bank of Russia
Speakers
Yuriy Denisov, Chairman of the Management Board, Moscow Exchange
Sergey Ozerov, Chairman of the Management Board, Rusfinance Bank
Mikhail Polyakov, Chairman of the Management Board, Member of the Board of Directors, Nordea Bank
Front row participant
Olga Kryuchkova, First Vice President, National Financial Organization (NFA)

15:40–16:00

Coffee break

16:00–17:10

Hotel Astoria, Conference hall 6 (first floor)
Parallel sessions Banks Session 1.7: The Development of the Deposit Insurance System This session will focus on the objectives of Russian banks in the deposit insurance system, together with the main aspects affecting growth in the ...
This session will focus on the objectives of Russian banks in the deposit insurance system, together with the main aspects affecting growth in the sector, and next stages. Discussions will take into account ambitious objectives aimed at improving the Russian banking sector, growing numbers of members in the deposit insurance scheme, and the insurance liability of the Deposit Insurance Agency (DIA). Participants will look at ways to ensure the self-sufficiency of the compulsory deposit insurance fund and the commensurate burden on banks, particularly with regard to approaches to forming a calculation base and a differentiated system of insurance premiums which takes a bank’s financial stability into account. International trends in the development of deposit insurance systems (the EU, BRICS) will also be examined, as will the potential of the emerging common financial market of the EAEU, and ways to harmonise the deposit insurance systems of EAEU member states in order to provide depositors with full and cross-border insurance coverage.
Moderator
Vasily Pozdyshev, Deputy Governor, Bank of Russia
Speakers
Thierry Dissaux, Chairman of the Board, Fonds de Garantie des Depots et de Resolution (FGDR), France
Daniel Dominioni, President, Bank Savings Protection Corporation (COPAB), Uruguay
Yury Isaev, General Director, Deposit Insurance Agency
Valery Tsialipka, Director General, Agency of Deposit Compensation, Republic of Belarus
Vladimir Šarić, Chairman of the Board of Directors, Deposit Insurance Agency, Republic of Serbia

16:00–17:10

Presidential Library,
Conference hall 2 (first floor)
Financial Market Professionals Session 3.7: Fair Pricing on the Securities Market Fair pricing of securities, in line with a particular economy’s requirements, is essential for sustainable growth in a financial market.Given the e...
Fair pricing of securities, in line with a particular economy’s requirements, is essential for sustainable growth in a financial market.
Given the existing ill-founded practice of estimating the fair value of equities based on their stock prices, the notion of fair equity value in organised trading needs to be verified and validated by both the regulator and market participants.
What determines the confidence of the Bank of Russia and market participants in the price established in exchange trades? Who creates the price: professional analysts and traders, or retail investors?
What is the role of domestic investors as a source of fair pricing? Why is it that the fundamental value, exchange price, and fair value are not the same thing? How is fair value affected by factors such as access to insider information and external shocks of a political or non-market nature? Is it possible to define the criteria for market activity and liquidity, and determine quantitative values for them?
Speakers
Andrey Kuznetsov, Partner, KPMG
Anna Kuznetsova, Member of the Executive Board, Managing Director of Securities Market, Moscow Exchange
Anton Malkov, Managing Director, Corporate Finance, Sberbank CIB
Sergey Shvetsov, First Deputy Governor, Bank of Russia
Front row participant
Alexey Buzdalin, Head of the Working Group, NSD Price Center; Director, Center for Economic Analysis, Interfax Group