Russia introduced a law that increases the number of business reputation requirements for owners and heads of financial organizations, as well as toughens penalties for violation of these requirements.
From now on there will be unified business reputation requirements for shareholders, managers of banks, insurance companies, nongovernmental pension funds, microfinance companies, management companies and so on.
if a person doesn't meet requirements, he no longer can hold management post or acquire large stakes in insurance companies, microfinance companies, etc.
The document introduces new criteria of assessing business reputation. This list now includes 25 criteria, which are applied to all subjects mentioned in the law. Previously, the requirements were different for different businesses and institutions.
The time heads and owners of banks will be included in the so-called "black base" of the Bank of Russia, which includes persons with unsatisfactory business reputation, increases from five to ten years, during which they can't hold position of a head, a member of the board of directors of the bank or acquire more than 10% of its shares.
If the court finds out that banker was involved in deliberate or fictitious bankruptcy of the credit institution or violated business reputation requirement, he will receive a lifetime ban.
Financiers are also allowed to request information about the data "black base" has about them from the Central Bank.
