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MOSCOW, 22 December (BelTA) – At a meeting in St. Petersburg on 21 December, the Supreme Eurasian Economic Council approved a regulation that defines key approaches for harmonizing legislation and forming a common financial market within the Eurasian Economic Union, BelTA learned from the press service of the Eurasian Economic Commission.
“The document provides for the introduction of a multi-tier (differentiated) approach,” the EEC explained. “This stipulates that harmonized requirements for regulating activities will be established by international treaties within the union and will apply to those financial market participants providing services within the union’s common financial market. For participants operating only within the territory of their member state, the requirements established by national legislation will remain in place.”
“A differentiated approach strikes a balance between deepening integration and protecting national financial systems,” commented Bakhyt Sultanov, Minister in charge of Economy and Financial Policy of the Eurasian Economic Commission. “We are creating clear rules for the market: companies that want to provide financial services throughout the union will receive uniform regulatory standards, while those operating in the domestic market will retain their familiar regulatory environment. This will improve the accessibility and quality of financial services for citizens and national economies as a whole.”
A differentiated approach provides freedom of choice: financial market participants will independently, based on their capabilities and strategic goals, decide whether to enter the union’s common financial market.
The heads of state of the EAEU instructed the Eurasian Economic Commission, together with the authorized bodies of the member states, to work on amendments to the union’s legislation, taking into account the adopted regulation. Amendments to the EAEU Treaty, the harmonization agreement, and sectoral acts are also planned. These will clarify the timeframe for creating a supranational body to regulate the EAEU financial market, as well as the specific mechanisms and timeframes for legislative harmonization.
“The EAEU’s common financial market is built on four fundamental principles: regulatory harmonization, mutual recognition of licenses, cross-border provision of financial services without the need to establish a legal entity, and administrative interaction between national regulators,” the EEC added.
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