In compliance with the president's ordinance, federal executive body Federal Service for Financial Markets of the Russian Federation (FFMS) was dismissed. The head of the state has signed a decree on not just abolishing the FFMS, but also seizing its property. All the belongings and most of the control and regulatory functions in the financial markets field went to the Bank of Russia. Such a turn of events was rather predictable considering the adoption of the law on the establishment of the financial mega-regulator on the basis of the Russian Central Bank. In accordance with the law, which will take effect on September 1, the central bank is supposed to form a new board of directors by November 1. The term of office of the CBR chairman and other supervisory board members will be elongated. Besides, it is planed to create a special committee on control and financial supervision of the financial markets activities. Such a legislation is aimed at reduction of the administrative burden upon the market participants. Mega-regulators, which are established under the roof of the central banks, effectively function in more than 55 countries. It is worth mentioning that the FFMS was set up according to the president's decree in 2004. Since that time it had been managed by Russia's government.
