• RUS NFA initiated development of new mechanisms/criteria for information disclosure by Russian issuers as currently firms have limited amount of information they disclose.

Summary

• Limited disclosure of information by issuance documents leads negative consequences, making it difficult for investors to develop risk policies, liquidity policies and etc.
• In addition, banks and other institutional investors may refuse to purchase securities that do not comply with disclosure policies, which will artificially narrow the market.
• Joint development of mechanisms/criteria for disclosure will allow organizations that are investors in securities of Russian issuers to properly implement risk management.