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  • 1. VIII ALL-RUSSIAN SECURITIES MARKET CONVENTION RUSSIAN FINANCIAL MARKET: GLOBAL INTEGRATION INTO WORLD ECONOMY 19-20 October, Moscow, Marriott Grand Hotel Programme of the Convention Section Events No. 1 Opening ceremony: Russian financial market: global integration into world economy Speakers: 1. German Gref, Minister of economic development and trade of the Russian Federation 2. Oleg Viugin, Head of Federal Financial Markets Service (FFMS) of Russia 3. Konstantin Korischenko, Deputy of the Chairman of Bank of Russia 4. Andrei Sharonov, Minister of economic development and trade of the Russian Federation 5. Arkadi Dvorkovich, Chief of Expert management of the President of the Russian Federation 6. Ilia Lomakin-Rumyantsev, Head of the Federal service of insurance inspection. 7. Anatoly Aksakov, Deputy of the Chairman of the Committee on credit organisations and financial markets of the State Duma of the Russian Federation. 8. Sergei Vasiliev, Chairman of the Committee of the C.F. of the Russian Federation on the financial markets and monetary circulation. 9. Viktor Pleskachevskyi, Chairman of the Committee on the property of State Duma of the Russia Federation 10. Alexander Korzhakov, Deputy of the Chairman of the Committee of the State Duma on safety 11. Maxim Medvedkov, Director of the department of trading negotiations of the Ministry for Economic Development 12. Alexei Savatiugin, Ministry of Finance of the Russian Federation, Director of the Financial Policy Department. 2 Plenary session: Crises of the Washington consensus: before and after Transfer into market economy is a debt process that includes various aspects of economic activity. In the beginning of the 90s influential financial organisations, political bodies, and highly skilled economists gave recommendations named “the Washington Consensus”. The decision of the World Bank and the International Monetary Fund, to subordinate allocation of the loans to acceptance of the policy guided by the above mentioned consensus, has served as the reason for economic reforms in Russia, Ukraine, and Bulgaria. The essence of idea ensuing from “Washington Consensus” will be that essential conditions of transition from socialism to capitalism are democratisation in politics, mass privatisation, and price reforms. Unfortunately, the results were rather different from those predicted by the above mentioned models of economic development. As consequence of Washington Consensus decade, Russia, Ukraine, and Bulgaria showed the worst results and the world community recognised that similar programmes developed by “Washington economists” do not work. That is the reason why economic and stock market problems arose. Problems connected with “Washington Consensus” application: protection of investors’ rights, raiding, 1997/98 crisis, economic undercapitalisation of the 90s, loans-for-shares auctions in mid-90s, repartition of property in the present. Such policy, though it does not provide economic growth, guarantees manageability, transparency, and predictability of actions (inactivity, that is) of the government, what is important for international financial and 1
  • 2. trading capital interested in establishment of control over stock market of relevant countries. However, originally, this approach designed for developing economy and the “Third World” countries did not consider some of the important facts, crucial for system reorganisation from stabilisation to growth: neglect of value of institutional build-up of economic growth at its beginning, even when bases of economy are already established. Eventually, a necessity of a new, post-Washington Consensus arose. If rules of a specific economy are not respected, all-purpose formulas are doomed to fail. Were the objectives achieved, or was it only an intention - successfully motivated attempt? What is the role of stock market in the new concept? Speakers: 1. Mikhail Leontiev, Head and presenter of programme “Odnako” 2. V. Yasin, Head of the State University - Higher School of Economics, director of Institute of Experts. 3. M. Deliagin, Director, Institute on Globalisation 4. Sergei Glaziev, Committee on foreign trade activities assistance of Commercial and industrial chamber of the Russian Federation 5. A. Illarinov, President, Fund of the Institute of Economic Analysis 6. V. Evstigneev, Head of the Institute of Complex Economic Systems 7. N. Osadchiy, Analyst, Investment Company “Eurofinance” 8. E. Nabyulina, Centre for Strategic Studies 3 Section: « 15 years of discussion. Central depositary: decrease of risks, or fight for new division of the market? » The idea of Central Depositary (CD) celebrates its 15th anniversary, but only recently Financial Service on the Financial Markets (FFMS) took the concept on “Central Depositary”. According to FFMS’s plan, creation of CD will solve the problem on protection of property rights at the Russian stock market. However in practice, infrastructural reform cannot solve such problems. Why the Russian market could not create its own Central depositary yet? What prevents the largest depositaries to unite and form a new market institutions at their basis? Within the framework of this session, participants will listen to the position of regulators on singularity of nominal holding in registers of securities’ shareholders, rights of which will be held by CD, inherence of a clearing component in CD’s activity, requirements which will be presented to the "central" institute, property and management structure of CD. Expedience of creation of CD based on already existing organisations of “DKK” (Depositary Clearing Company) and “NDS” (National Depositary Centre), particularity of custodial business in Russia will be considered. Organisers of the conference hope that this section will help professionals to find compromise in order to form future Russian Central Depositary. Organiser and sponsor of section: JSC “DKK” (Depositary Clearing Co.) Master of section: Igor Moryakov, JSC “DKK” Speakers: 1. Igor Moryakov, President, “JSC” Depositary Clearing Company 2. N. Egorov, Director, “NP” National Depositary Centre 3. A. Popov, Ministry of Economic Development and Trade 4. A Savatyugin, Director of Department of Financial Policies, Ministry of Finance 5. Alexander Gordon, Vice-President, Bank for Foreign Trade 6. M. Laufer, Deputy Head of Management regulating activities of participants of the financial market (FFMS) 7. Viktor Pleskachevskyi, Chairman of Property Committee of State Duma of Russian Federation 8. P. Lanskov, Professional Association of Registrars, Transfer-Agents and Depositaries (PARTAD) 9. Natalia Sidorova, Head of Depositary Department, ING Bank 10. S. Berezhnoi, Head of Depositary Department, ООО «Deutsche Bank» Moscow 11. A. Fedorov, Citibank 12. A. Ageev, JP Morgan 13. V. Melentyev, Gazprom Bank 14. A. Stolyarov, ATON Capital 15. Alexei Timofeev, National Association of Securities Market Participants 2
  • 3. Items: 1. Russia, 2006. Perspectives of the settlement infrastructure of the Russian stock market transformation and current situation; 2. Technological aspects of creation and function of Central depositary; 3. Centralised clearing and depositary system contributes to decrement of risks and increase of reliability: insurance, funds of guarantee, capitalisation, newest technologies; 4. International experience in management of infrastructural organisations; 5. Place of registrar in the new structure of Russian registration system; 6. Process of integration in post-Soviet territory – Correspondent relations of depositaries at the CIS field; 7. Characteristics of custodial business in Russia; 8. Role of depositary in registration system; 9. Existing and promising perspectives for development of clearing at the stock market; 10. Registrar and protection of property rights. 4 Section: Securitisation: 3 years of development in the legal vacuum. Large, as well as midsize players are in need of securitisation. However for large, specialised banks mechanism of securitisation that really works becomes the component of business-model. Thus, specialised savings and loan associations are the basic developers and promoters of such mechanisms. If deals of refinancing through issuance of mortgage securities were started by midsize banks, primary mortgage market would probably become, at last, of large-scale. Furthermore, new instruments of risk emerge, which may be more profitable and essential. National stock market would receive a good drive to development. What is the obstacle for development of securitisation in Russia? Main obstacles for use of securitisation is the unsatisfactory legal system, which potential participants of securitisation’s transactions, as well as rating agencies do not perceive. Absence of necessary acts of securitisation’s transaction, which are carried out at the moment by Russian banks, are of a very complex structure and unfairly expensive. When the favorable legislative environment for application of this financing technique will be created? In this section participants will discuss the best way to optimise legislation in the area of securitisation, such as expansion of actives, which can be used for securitisation; broaden the circle of requests, which can be used for securitisation; introduction of legislative limitation of possibilities to recognise restrictions of concession void; definition of requirements to emitters of securities released at the securitisation; creation of mechanisms to increase credit quality of securities; as well as specification of the legislation of the Russian Federation on securities regarding specificity of the securities provided by actives. Organiser of section: National Securities Market Association Master of section: Oleg Ivanov, Advisory Council of the Committee of credit organisations and financial markets Speakers: 1. A. Gusakov, Deputy Head of FFMS 2. Konstantin Korischenko, Deputy Chairman of the Russian Bank 3. Charles Ryan, Chief Executive Officer of Deutsche Bank Russia 4. A. Suchkov, Senior Vice-President, Bank for Foreign Trade 5. B. Zlatkis, Deputy Chairman of “Sberbank” Russia 6. O. Shishlyannykova, Adviser, “Financial Market Development Centre” Fund 7. N. Shitov, President, City Savings and Loan Bank 8. A. Semenyaka, General Director, “JSC” Mortgage Credit Agency 9. Sergei Ozerov, Chief Financial Officer, DeltaCredit Bank. 10. New credit class of actives of Russian securitisation. Synthetic securitisation and credit derivatives – is it possible in Russia? Vladimir Khrenov, Adviser, Freshfields Bruckhaus Deringer, Moscow branch 11. Review and analysis of Russian securitisation transactions. Legal aspects of transboundary transactions of securitisation of credit portfolios. Vladimir Dragunov, Baker & McKenzie. 12. Refinancing and securitisation of assets with floating interest rates. Analysis of mortgage loans and securities pool: price, risks, insurance, and trade. Gennady Suvorov, President, ABS Finance 13. Mortgage loans securitisation using mechanisms of closed mortgage investment funds and mortgage participants’ certificates. Forecast. A. Skomorokhin, Director General, Investment Managing Company 3
  • 4. “Yamal” Items: 1. Legislative initiatives within the framework of securitisation development in Russia; 2. Legal aspects of securitisation of mortgage credits; 3. Funding of mortgage business: lessons learned from developed markets and alternatives at the Russian market; 4. Accumulation of mortgage coverage for securitisation; 5. Place of specialised mortgage covering depositary in refinancing programs; 6. Tax transactions support for securitisation. 5 Section: Development of the Russian market derivatives at the global competition of financial markets. The feeling of absence of reliable tools for the hedging currency risks by Russian exporters was led by the strengthening of ruble’s exchange rate. Now a days, banks are willingly giving foreign currency credits to enterprises which have no relation to export. That is because the system was accustomed that in Russia there are no currency risks, therefore they do not have to be considered. In order to overcome the situation, first of all it is imperative to gradually create an infrastructure for hedging currency risks, as well as to slowly recoil from rigid management of ruble’s exchange rate to the US dollar. Is an urgent market necessary in Russia? Relevance of the question if obvious: derivative financial tools are necessary for vast circle of enterprises, with the purpose of reducing risks of exchange rate fluctuation, interest rates, and prices of goods. Hedging, with help of derivatives, will lower loading on economy as a whole, hence is obvious the necessity for development of given tools. Derivatives in Russia are, on one hand growth of volume parameters of tenders and open positions, on the other all same old unresolved problems: practically complete absence of whole market sectors well developed in other countries, absence of judicial protection of transactions, expensive conditions for hedging execution, imperfect tax system, and serious lack of qualified specialists. What prevents market of derivative tools to develop in Russia? Will precise rules and structures in investors’ work with tools of urgent market materialise? Answer to these and other questions will be given during this session by leading experts and analysts of the market of derivatives. Organiser and sponsor of section: Non-commercial partnership “Stock exchange, Russian Trading System” Master of section: Roman Goryunov, Vice-President NP “RTS” Speakers: 1. Steve Maver, President, Koch Supply and Trading, LP (USA). 2. Richard Kollier, Partner, PricewaterhouseCoopers (London). 3. A. Gavrilenko, Representative of Russian Exchange Alliance 4. Sergei Zamolotsky, Head of New Products Department, RTS Stock Exchange 5. Ilya Efimchuk, Director General, “Derivative Expert” Agency 6. Tatiana Medvedeva, Adviser, “Financial Market Development Centre” Fund. 7. Pavel Sokolov, “Troyka Dialog” 8. Valery Pushnya, ООО «Deutsche Bank» Moscow, Derivative Tools Section, Department of Trade Operations Items: 1. Provision of judicial protection of participants of transactions; 2. State regulation of urgent market; 3. Legislative protection of means of the clearing centre; 4. Questions on taxation of urgent market. 5. Current condition and perspectives of the market of Russian urgent contracts; 6. Practical aspects of work of professional participants of the securities market at Russian urgent market; 7. Derivatives on the index of RTS - a new development stage of Russian urgent market; 8. Interest rate futures; 9. Management of actives and passives utilising credit derivatives; 4
  • 5. 10. Oil derivatives. 5
  • 6. 6 Section: Financial markets: how to turn success into skill? A new vision of investment funds Basing on the experience of countries, when various forms of collective investment have evidently shown their advantages, some conclusions can be made. First of all, development of Mutual Investment Funds (MIF) stimulates growth of financial markets in the country due to accumulation and investment of significant volume of financial resources. Moreover, opportunities of population to maintain and increase savings increase, what in itself makes it possible to protect their interests and augment trust in financial institutions. In the process of development of collective investments market, competitive struggle between its participants will increase accordingly, and quality of services provided and availability of the given financial tools will increase. Thereupon, significant work with informative character should be carried out by the State, for example: within the framework of pension reform. It is only fair from a point of view, for being, first of all, social function. In fact, the main purpose of any state policy is the preservation and boost population’s well-being. Thus, in the social sector, a system of partnership arises between private and state institutions. Therewith, the government creates favorable conditions for development of private sector in the given area, but at the same time is precise in manipulating the whole system. In the end, such system suits all: government, private companies, and citizens. In addition, existing cash on hands, it is obvious that for development of mutual funds market is necessary to search for mechanisms of use of saved potential, for example: bank sector. One of such mechanisms, which already begun finding its application, is performance of banks in the role of agents on distribution of shares for a corresponding commission. However, participation of banks in that direction is not grand yet. At the same time more active interaction between managing companies and banks may influence involvement of a considerable amount of population’s means. At the National League of Management Companies’ (NLMC) section will be discussed amendments in legislation and stability regulating activities of managing companies and investment funds, tax law, taxation at the market of collective investments, pension reform, military mortgage, new possibilities for CMIF’s (Closed Mutual Investment Funds) real estate, and other. Organiser of section: National Managing League Speakers: 1. C. Kharlamov, Deputy Head of the Federal Financial Markets Service (FFMS) 2. A. Beskrovny, Head of department of regulation and control of collective investments, FFMS 3. P. Teplykhin, President, Managing Company “Troyka Dialog” 4. C. Mikhailov, Director General, Managing Company “Management Centre” 5. N. Plugar, Deputy Director General, Managing Company “Uralsib” 6. A. Shkrapkin, Director General, Managing Company “Kapital” 7. A. Gavrilenko, Director General, Managing Company “Leader” 8. A. Golubovich, “Russian Investors” Items: 1. Changes in legislative and regulatory framework regulating activities of managing companies and investment funds; 2. Unit investment fund as the best investment of savings. New category of UITs (Unit Investment Trust) - direct investment funds: features of creation and functioning, additional opportunities for investors; 3. Corporate management as factor of risk reduction of collective investments; 4. Tax laws. Taxation at the market of joint investments; 5. Pension reform: military mortgage, Agency for Investment Insurance; 6. Implementation of corporate management standards of Management Company’s activities; 7. New Closed Unit Investment Fund real estate opportunities: investment into building; 8. Development technology of long distance sales of public investment products by managing companies (banks, stock exchanges, Internet). 7 Section: Accumulative pension reserves: new terms of investment. The basic issue for managers of pension assets is the narrow structure of assets admitted for management. There 6
  • 7. are requirements for portfolio structure, which have been foreseen in legislation that makes it impossible to maintain an effective level of management of pension reserves. That is the main factor that slows down the industrial development. This section is dedicated to mitigations of requirements on portfolio structure of non-state pension funds and Pension Fund of Russian Federation, introduction of new mechanisms for pension provision in Russian Federation, matters connected to incentive for private pension provision development plans, to optimise the non-state pension fund system, issue of taxation and financial stability of such schemes, securing of savings and transparency of pension plans, as well as establishment of equal requirements for investment pension reserves and control over its investment. Organiser of section: National Association of Non-governmental Pension Funds Master of section: Konstantin Ugriumov, Chairman of the Council, National Association of Non-governmental Pension Funds Speakers: 1. Mikhail Aranzhereev, Deputy Head, department of regulation and control of collective investments, FFMS of Russia 2. A. Savatyugin, Director, Department of financial policies, Ministry of Finance, Russian Federation 3. E. Artyomova, Deputy Head, Department of Social Policy, Ministry of Economic Development and Trade, RF 4. Vasily Kirpichev, Deputy Representative of the Board, Managing Company “Vnesheconombank” 5. Ekaterina Tyurina, Head of Pension Reform Department, Ministry of Finance, RF 6. A. Vorontsov, Deputy Director, Department of Financial Policy, Ministry of Finance, RF 7. M. Berezhnoy, “LUKOIL-garant” 8. R. Kokorev, Manager of Sector, Fund “Bureau of Economic Analysis” 9. Valentin Raik, Federation Council of RF, Adviser of the Department of Social Policy of Analytical Administration, Doctor of Economic Sciences 10. Yu. Voronin, Director, Department of Social Insurance and provisions to the Ministry of Health and social development of RF by the State 11. Vladimir Mudrakov, Vice-President, “GAZFOND” Items: 1. Mitigations of requirements on portfolio structure of non-state pension funds of Russian Federation; 2. Regulation of pension system – what to expect in 2006; 3. Additional pension provision of budget sphere workers as the tool for achievement of the programme of social and economic development of North West Federal Region; 4. Experience and problems of introduction of municipal pension programmes; 5. Actual condition of accumulative labour pension regulation; 6. Role of National Pension Fund in the decision of government’s task to increase the well-being of retirees; 7. Strengthening of the role of National Pension Fund for obligatory pension insurance; 8. Mandatory Pension Insurance seen by managing company: experience, problems, perspectives; 9. Financial investment tools of pension reserves: new approach in the investment policy; 10. Russian stock market and optimal investment decisions; 11. Questions of the taxation of National Pension Fund activity. Tax disputes on social package – review of arbitration practice; 12. Long resources for economy. 8 Section: Problems of capitalisation of the bank system: IPOs of Russian banks. Rise of banks’ capitalisation traditionally occurs through mechanisms of capital markets – IPO and M&A – which are the only way of reliability and competitiveness increase in the Russian bank system. Today, the turnarounds of stocks at the exchange belong to the largest Russian banks only. However, existing bank regulation makes entrance to IPO for mid-size banks very difficult and expensive, and often inaccessible. As the result, a situation arose in Russia, where was practically complete absence of assets at the stock market, while in the world these assets held an essential part of the financial market. Another way to increase effectiveness of national bank system is M&A, which allows decreasing costs and 7
  • 8. diversifying bank’s activity. Furthermore, “M&A” strategy leads to achievement of objectives for development of credit organisations, conducts by increase of virtue activity scale boost, contributes to expansion of client data and geographic presence. During this section we plan to examine main paths of exploitation of stock market’s mechanisms in order to raise capitalisation of Russian bank system as it is seen by Central Bank and by representatives of bank associations, as well as to develop a number of recommendations to stimulate IPO and mergers and acquisitions process of Russian banks. Absence of these mechanisms is an obstacle for an effective development of bank system and slows down population’s access to bank products. Master of section: Alexander Murachev, President of the Association of Regional Banks of Russia (Association “Rossia”) Speakers: 1. O. Balimova, Head of department of registration and licensing of credit organisations of the Central Bank of RF 2. A. Kostin, Chairman of the Board, Bank for Foreign Trade 3. Pavel Filimoshin, Deputy Head, Department for issuing securities, FFMS, RF 4. Mikhail Moshiashvili, Chairman, Deutsche UFG 5. Garegin Tosunyan, President, Association of Russian Banks (ARB) 6. Alexei Timofeev, Chairman, National Association of Securities Market Participants 7. G. Piskov, Chairman of the Board of Directors, “Yuniastrum” Bank 8. A. Vernikov, Higher School of Economics 9. I. Yurgens, “Renaissance Capital” 10. Hugh Verrier, Partner, White&Case LLC 11. C. Avramov, Attorney, Baker&McKenzie 12. T. Medvedeva, Senior Adviser, “Financial Market Development Centre” Fund 13. A. Dvorkovich, Head of Expert Department, Administration of the President of the Russian Federation Items: 1. Banks at the IPO market: strategy of entry and growth of capitalisation; 2. Mechanisms of capitalisation growth while entering financial market; 3. Liquidity of stocks – path to increase capitalisation; 4. IPO as a way to increase capitalisation of banks – pros and cons; 5. Banks: before and after IPO – main obstacles; 6. Increase in banks’ capitalisation through M&A process; 7. Capitalisation of Russian bank system: problems and solutions. Diversified points of view. 9 Section: Creation of affordable housing market: effective investment strategy and problems of Russian building industry. From 01 January 2006 four national projects joined into force. National project “Affordable and comfortable housing for Russian citizens” is one of examples when large businesses can be engaged in active building development. During this section the participation of financial markets will be discussed in order to prioritise national projects’ implementation; efficient ways to attract investments to build effective social sectors; legal bases for its accomplishment and interaction path between business and authority; tools to finance housing development programmes and mortgages, as well as ways of increasing efficiency in development of mortgage crediting systems. There will be discussions on actual problems of Russian building industry, including “grey” schemes for apartments sale to partners, such as preliminary sales agreement, "a hundred-percent deposit ", and sale by check. We expect to get various spectrums of opinion regarding course, problems, and strategies for development of the priority national project – “Affordable housing”. Organiser of section: Institute of Urban Economy (IUE) Master of section: Nadezhda Kosaryova, President IUE 8
  • 9. Speakers: 1. Sergei Kruglik, Head, Building and housing maintenance and utilities Federal Agency 2. Nadezhda Kosareva, President, Fund “Institute of Urban Economics” 3. G. Khovanskaya, Government Duma of Russian Federation 4. M. Viktorov, Director General, Agency “ North-West Construction Industrial Estate” 5. Sergei Kharlamov, Deputy Head, FFMS, RF 6. Ivan Grachev, Chairman of the Expert Committee on legislative provision of affordable housing by Federal Council of RF 7. Valery Zubov, Deputy Chairman, Committee on Credit Organisations and Financial Markets of Russian Government Duma 8. Olga Shishlyannikova, Adviser, “Financial Market Development Centre” Fund 9. I. Fralovsky, Head of Department of Securities, Moscow Municipal Bank “Moscow Bank” 10. V. Averchenko, Head, Building and housing maintenance and utilities Federal Agency “Roststroy” 11. A. Semenyaka, Director General, JSC “Home Loan Agency” 12. N. Karacev, President, Member of Board of Directors FIG “Affordable Housing” 13. C. Polonsky, President «Mirax-Group». Items: 1. Protection of partner’s rights: struggle with “grey” schemes; 2. Myths and reality of Moscow construction market; 3. Administrative obstacles in development of share mortgage cooperatives as a way to provide citizens with affordable housing; 4. Influence of the law on share construction to increase available housing; 5. Alternate methods to finance housing. Progress of building-banking system in Central and Eastern Europe, and Russia; 6. Three sources and three components to finance affordable housing through securities; 7. Legislative protection of citizens’ rights, investing their means in building and home purchase. A new legislation and perspectives of its amendment taking in account opinion of market participants; 8. Cooperatives controlled by the Government, involving funds of citizens to purchase housing; 9. IFC investments into Russian regional infrastructure; 10. Perspectives of loan and savings institutes of Russia; 11. State supervision of builders’ activities, using citizens’ funds for construction of apartment houses and other real estate projects; 12. Perspectives of introducing new methods to finance building and purchase of houses in Russia using citizens’ savings funds; 13. Bill of building – savings banks; 14. Real estate and mortgage UTIs – perspective of financial achievement tools of housing programmes. 10 Section: Municipal loans: new class of assets at the financial market. The law on self-management, also known as act 131, took effect from 1 January 2006. According to it, thousand new municipal education institutions will be created in all Russian regions. Market of municipal loans experiences a now development period, changes were made in the budget code, thus creating basis for realisation of financial activity by municipalities. In recent years large municipalities paid their debts and in overwhelming majority they can be quite good borrowers. For the financial market it means to create a new class of assets in conjunction with a new class of risks, which are not too many in a quantitative sense. First of all, those are capitals of subject of Federation, as well as cities with large enterprises. It is not enough to develop a market, loans will not be large, furthermore, municipalities of regional and rural levels practically do not possess own serious financial base. Main issues that exist at the moment at the market of municipal loans are lack of budget discipline, investment standards, and treasury system for administration of budget. How existing problems can be solved? When will be developed a new class of assets at the financial market? Organiser of section: Securities and Investment Institute (SII) Master of section: Alexei Lavrov, Director of Budget Policy Department, Ministry of Finance RF Speakers: 1. B. Zlatkis, Deputy Chairman, Sberbank, RF 2. T. Nesterenko, Head of Federal Treasury / R. Artyukhin, Deputy Head of Federal Treasury 9
  • 10. 3. Dayva Latinite, Deputy Head of State Dept Department, Ministry of Finance, RF 4. Sergei Pakhomov, Chairman, Moscow State Holdings Committee 5. Ludmila Smolnikova, Tomsk Administration, Deputy Mayor, Director of Finance Department 6. Leonid Pikman, Head of Finance Department, Volgograd Administration, Director of Finance Department 7. Olga Molchanova, Director, Department of Economics and Finance, Novosibirsk Administration 8. Magomet Yandiev, Lomonosov Moscow State University, chair of “Finance and Credit”, Associate Professor Items: 1. Main directions of budget reforms. Budget code; 2. Creation of debt agency for municipal education – “It can be solved!”; 3. Budgetary process in the regions – quality and transparency “before and after”; positive and negative sides of the reform; 4. Fundamental consequences of the reform as means for government to perform its duties. Credit qualities of local finance; 5. Financial flexibility debt policy of regions as result of the reform, necessity of local budgets for loans on organised market. 11 Section: Raiders: business purifiers or economic guerrilla? During work of this section the main causes of property criminal seizures in Russia will be mentioned: imperfection of corporate legislation, weakness of judicial system, corruption in law enforcement bodies. The address will enlighten on modern raiding techniques, will offer measures of resistance to them, new legislative initiatives of law enforcement bodies, such as clarifying matter on jurisdiction of corporate disputes, ordered introduction of measures on upholding lawsuits, preliminary judicial control to carry out extraordinary general meeting of shareholders, will be considered. Speakers will be representatives of The Federal Financial Markets Service, Supreme Arbitrage Court, Russian Federal Notary’s Chamber, Chamber of Commerce and Industry of RF, and business community. Master of section: O. Kurbatov, Department of Economic Safety, Chamber of Commerce and Industry RF Potential sponsors: Investment Company “Rosbilding” Speakers: 1. C. Borisov, Chairman, all-Russian public organisation of small and midsize business “Opora Rossii” 2. B. Titov, Chairman, all-Russian organisation “Delovaya Rossia’ 3. E. Klyanchin, President, Federal Notarial Chamber 4. C. Vartanyan, Association on Protection of Investors’ Rights 5. N. Getman, Head of Department, Chamber of Commerce and Industry of the Russian Federation 6. L. Novoselova, Judge, The Supreme Arbitrage Court of the Russian Federation 7. A. Korzhakov, Deputy Chairman, State Duma Committee on Safety 8. A. Tulupov, President, Investment Company “Rosbilding” Items: 1. Mergers and acquisitions: particularities of Russian practice; 2. Effective protection measures against “unfriendly acquisitions”; 3. Ways to establish control over an enterprise; 4. Raiding: business or crime? 5. Corporate conflicts during mergers and acquisitions: ways of managing companies; 6. Legislative initiatives on struggle against criminal seizures in Russia. 12 Section: Investment activity of insurance companies – source of financial market’s stability – development matters. Life insurance carries out an important socio-economic task in the whole world. Insurance companies, through long-term life insurance, bring big moneys into economy and become the source of long investment resource, which is very important for development of Russian companies. These resources can be directed through bank system on a long-term crediting of Russian economy, development of mortgage programmes, and other financial 10
  • 11. instruments. Also, insurance is capable to replace some state social programmes by taking off the load from state budget, what is of prime importance to Russia because of pension system crisis and inauspicious demographic tendency. However, today, domestic market of life insurance is not an enough developed segment of economy. The fact is that in Russia share of premiums under classical contracts of life insurance is less than 1 % from the total amount of insurance premium. For reference: in Western-European and American countries it reaches 90%. There are several reasons of underdevelopment of insurance market in the country: distrust of Russians to long-term financial tools, population’s poor understanding of classical life insurance mechanisms, absence of tax stimulus, and perhaps the main cause --- lack of clear legislation in that field. It is obvious that from government’s point of view life insurance is very much needed. Through long-term life insurance, insurance companies bring big moneys into economy and become that locomotive, which can drag effectively behind it the system of institutional investments. It is to understand that stability is not the “Stab-fund”, but long-term resources to debug mechanisms, which will provide inflow of these resources into financial markets of the country. In this section will be raised questions on market of insurance services in Russia: guarantee of fusion of requirements on insurance reserves investment of funds, development and acceptance of regulations that stimulate growth of capitalisation and financial stability of insurance companies, increase of insurance business transparency and availability of information on insurance operations and parameters of activity of insurance companies, granting by domestic insurance companies a complex, reliable, and accessible insurance protection for enterprises and citizens, economic and legislative stimulation of life insurance, as well as perspectives and strategies of life insurance development in Russia. Master of section: A. Mamut, Member of Board of Directors JSIC “Ingosstrakh” Speakers: 1. I. Lomakin-Rumyantsev, Head of Federal Insurance Supervisory Authority 2. D. Khachaturov, Director General, JSC “Rosgosstrakh” 3. Alex Bertolotti, Head of Insurance, Pensions and Securitisation Practice, PricewaterhouseCoopers 4. V. Balakireva, Deputy Head of Financial Policy Department, Ministry of Finance, RF 5. A. Gulchenko, Deputy Director General, JSC “ROSNO” 6. N. Klekovkin, Director General, LLC “Renaissance Insurance Group” 7. A. Mamut, Member of Board of Directors JSIC “Ingosstrakh” 8. Peter Muller, Munich Insurance Corporation 9. D. Ignatiev, Director General, JSC Insurance Company “Zurich-Rus” 10. A. Danilov-Danilyan, Head of the Economic Working Group, Administration of President of the Russian Federation Items: 1. Russian insurance market at the modern development stage: appeals, questions, and possibilities; 2. Legislative aspects of introduction of self-regulation in insurance area; 3. Financial balance and transparency of insurance companies; 4. Insurance companies as investment bankers; 5. Improvement of national insurance market - perspectives of development; 6. Certification of financial actuaries; 7. Pension fund – source of financial market’s stability; 8. Perspectives and strategies of life insurance development in Russia. 11
  • 12. 13 Round table: Taxation at the securities market –investment environment. It is evident that taxation policy should be balanced, i.e. to take into account need for financing the State expenditure, to stimulate investment climate, to support high level of demand. Only these conditions will provide economic growth. Are taxation principles respected in Russia while creating and subsequently developing national tax system? Low effectiveness of tax policy is related to establishment of such rates of taxation, which, first are excessive for business and second do not play a stimulating role in development of industry, what makes them, as a matter of fact, discriminating. Such national rule of taxation on securities, which creates obstacles for internal investors, stimulates migration of operations with Russian securities to foreign markets. The fundamental reason underlying an inefficiency of a budgetary tax policy are unfairly high expenditures of the federal budget and accordingly, overestimated limits of public debt, which is annually confirmed by the State Duma. Thus, decrease in tax payment is becoming a tendency which, amplified by virtue of such factors as growth of accounts due from enterprises, decreasing of tax discipline. Lack in aggregate regulation and discriminating taxation lead to a large use of "grey" pattern, with objectives of tax evasion. Can the absence of effective regulation of budget tax policy lead to dramatic events of 1998 crisis? Participants of the round table will discuss how to build an appropriate tax system, change the payment procedures on securities profit, reduce transaction costs of investors and issuers, expand expenditure index, which are accepted for tax purposes of their operations from securities income, cancellation of tax exemptions, as well as taxation of REPO transactions and urgent transactions. Organiser of section: Securities and Investment Institute (SII) Master of round table: Vladimir Murzin, Head of Tax Department, HSBC Bank. Speakers: 1. Aspisov, Deputy Head, Department of methodology and operations control over financial markets of the Central Bank of the Russian Federation 2. K. Kotov, Adviser, Department of income declaration of individuals, Federal Tax Service of Russian Federation 3. M. Motorin, Department of tax and customs rate policy, Ministry of Finance of RF 4. N. Plugar, “Uralsib” Bank 5. V. Bulantseva, Deputy Head, Department of tax return, Ministry of Finance of RF 6. E. Novikova, Expert of Corporate Management, Ministry of Economic Development and Trade of RF 7. T. Matveicheva, Department of taxes and rights, LLC “Financial and Accounting Advisers” 8. E. Kazachenko, Head of Legal Department, Investment Group “Aton” 9. Yulia Novikova, Deputy Head of Control Department, methodology and professional audit, National Association of Securities Market Participants Items: 1. Is the tax system at securities market effective? Basic disproportions of taxation; 2. Definitions of "settlement" and "market" price of a security for tax purposes; 3. Specificity of accounting and taxation of securities market’s participants. Operations with bills: book keeping and taxation; 4. Taxation of individuals at the securities market: property tax deductions, urgent transactions, and REPO transactions; 5. Rules of taxation on REPO transactions and urgent transactions; 6. Various issues of taxation on profit of credit organisations during operations at the securities market. 14 Round table: Business journalism and business itself: how to manage balance of interests? The financial services sector has made enormous improvements in its own management and regulation in recent years, introducing modern management techniques, a wide range of competitive products and services, and a new generation of professionals capable of meeting the challenges of the new economy, in Russia and beyond. However this reality and the population's perception of the banking sector differ considerably. The population at large still treats the banking sector and the financial markets with mistrust and skepticism: as a result, it is estimated 12
  • 13. that still over 60% of savings are kept "under the mattress" rather than in bank accounts. People know how to buy and sell, but saving and lending are unfamiliar concepts, and for most investment is "another planet". For the financial services industry, the consequences are clear - with new products such as credit cards, insurance and mortgages being made available, the lack of sophistication of the banks' clientele restricts the growth of the market and increases risks of defaults. And for the economy as a whole, growth is limited by the population's passive approach to entrepreneurialism and investment, driven by unfamiliarity with basic concepts such as property, contracts, the financial markets and managing new businesses. This round table, brought together by the International Business Leaders Forum, will bring together leaders from financial services companies, the press and the PR industry, to discuss the challenges faced by the industry in communicating its role and benefits to the population at large, and how business, the press and the government might work together to improve the financial literacy of the population. The aim of the round table will be to engage the auditorium in a discussion designed to lead to solutions which can be implemented by financial services companies, working together and individually. Organiser of section: Securities and Investment Institute Master of section: Brook Horowitz, Deputy Director of Russian Partnership for Action on Corporate Governance Speakers: 1. Brook Horowitz, Executive Director, Russia Partnership for Responsible Business Practices 2. Oleg Anisimov, Chief Editor, “Finance” 3. Mikhail Matovnikov, Director General, “Interfax Business Service” 4. Vladimir Gerasimov, President, Information Service Group, “Interfax-AFI” 5. С. Mikheev, Director General, Information Agency “Finnam” 6. C. Yakovlev, Chief Editor, “Dengi” 7. Valery Fadeev, Chief Editor, “Expert” 15 Round table: Stagnation of the corporate governance. What is next? As the result of scandals with American corporations Enron and Worldcom, as well as with European Parmalat, connected with a low level of corporate management that entailed opportunity of financial frauds, recent years became the period of sharp actualisation of problems of world’s corporate management. It is the consequence of decision taken by the USA of Sarbanes-Oxley law by toughening requirements on disclosing information of securities to issuers. OECD new standards of corporate management were accepted. In Russia a Code of corporate character, obligatory for issuers’ work whose papers are abroad and in Russia, was passed. Organisations in charge of corporate management switched to solving minor matters, thinking that everything is going well. However, it was not so. During implementation of norms of given documents, issuers have mastered the technology of formal approach to the issue of corporate management in a company. Committees are being created in Boards of Directors, more and more independent directors are emerging, corporative secretaries appear almost everywhere. External structural reorganisation in companies’ management is visible. Is it so indeed? Has the given process resulted in real change in companies of corporate management? Investors’ opinion that the most serious factors, obstacle for development of corporate management, were and still are the unclear structures of property, information closeness of Russian enterprises, high degree of majority stockholders abuse, weakness of internal control procedures, and ineffective management. Therefore, it is visible that in the last few years not much has changed in the system of management of companies. The issue of stagnation of corporate management system will become the key during discussion of the given round table. Organiser of section: Securities and Investment Institute (SII) Speakers: 1. Igor Kostikov, Chairman, Board of Regents, SII 2. Andrey Sharanov, Deputy Head of the Ministry of Economic Development and Trade of the Russian Federation 3. V. Gusakov, Deputy Head, FFMS RF 13
  • 14. 4. Representative of American Chamber of Commerce 5. Tim Eggar, President, Russo-British Chamber of Commerce 6. C. Vartanyan, Executive Director, Association on Protection of Rights of Investors 7. K. Volkov, President, National Stock Association 8. Alexander Filatov, Executive Director, Association of Independent Directors 9. Yulia Sedova, Director, Institute of Corporate Law and Management 10. Tatiana Gromova, Head, Corporate Management Group “Deloitte” 11. Roger Mannings, Managing Partner, “KPMG” in Russia, Representative of Board of Directors, KPMG and CIS 12. Tony Antoniou, PricewaterhouseCoopers 13. Kif Charles, Coudert Brothers 14. Elena Krasnitskaya, Analytical Office “Troyka Dialogue” 15. Yulia Kochetygova, Leading Analyst, Standard&Poor's 16 Round table: Investment culture for all: protection of financial services clients. From 1990s, crises, financial pyramids, and activities of unconscionable officials led to a massive withdrawal of assets from banks. Now, there are building patterns and customer crediting facilities. The objective achievement of protection of financial services consumers’ interests offers fulfillment of following measures of control: disclosing information on unitary standards basis, registration of securities release, resistance to manipulation and insight at the stock market, protection of rights of investors’ minority in mergers and acquisitions process, rigid control of assets management. Majority of given measures are provision of efficiency of stock market and national economy as a whole. Without due protection of interests of consumers of financial services, it is impossible to boost the significance of stock market in economy and of course, it is important to consider this circumstance during the adjustment process. In the course of this round table main reasons taking to violation of investors’ interests in Russian stock market will be brought to light, as well as feasible mechanisms to increase the level of protection of financial services consumers, both in collective investment sector and retail financial services will be discussed. Organisers hope that result of this round table’s work will be visible proposals for amendment to federal laws “On protection of customers’ rights” and “On advertisement”, which will be merged and directed to government bodies. Master of section: Ya. Markin, IC “Eurofinances” Speakers: 1. Ya. Mirkin, Investment Company “Eurofinance” 2. Valery Podpaliy, Senior Manager, KPMG. 3. P. Medvedev, First Deputy Chairman, Committee of Government Duma on credit organisations and financial markets; Chairman of Financial Services for Consumers 4. Dmitry Yanin, President, International Confederation of Consumers Associations 5. P. Shelich, Deputy Chairman, Committee of Government Duma on civil, criminal, procedural, and arbitral law; Chairman of Consumers Union of the Russian Federation 6. O. Kulagin, Chairman, Russian Fund on Protection of Consumers Rights 7. Yu. Bondareva, Head of Department of control and supervision at financial service market, Federal antimonopoly service of Russia Items: 1. Increase the level of protection of investors’ interests as an essential prerequisite to create a healthy investment climate; 2. Indemnification funds to protect rights of investors; 3. Technology of revealing and estimation of damage from infringement of law at the stock market; 4. Main types of infringement of investors’ interests at the stock market and mechanisms of battle against them; 5. Law enforcement in protecting interests of financial services consumers. 17 Round table: Amenability at securities market: price manipulation and use of inside information. Given the condition of mass arrival of western financial institutions to Russia, there will be no legal obstacle on the way of unfair players enriched by price manipulation. “Inside” and price manipulation is a threat to national financial capital and to Russian investors. Investors’ 14
  • 15. confidence that the securities market functions on principles of fair and open price setting is the most important condition for its development. Manipulation violates integrity of the market and rejects investors. That is why controllers pay more attention to struggle against this phenomenon. Uncovering, investigation, and proof of manipulation is a very complex, multidimensional, and nonstandard task because, on one hand they have to counteract the anti-market phenomenon, but on the other not to encroach on freedom and initiative of business. Up to now no law was passed in Russia on “inside” and manipulation. In this market globalisation condition where opportunities for all kind of fraudsters sharply increased and struggle against them became considerably complex, there is a serious threat for the Russian stock market. This round table will address the main problems and questions on changes in legislation and regulatory structure regarding “inside” and manipulation: criteria of fraudulent transactions with assets of investment funds and criteria of manipulation of equity price, as well as measures on control and prevention of such manipulation; identification of circle of people possessing inside information; competence of government’s plenipotentiary executive body. Would it work, will it be the instrument of struggle with insiders, or will it be a mechanism of repression? Representatives of the government, FFMS, and direct participants of the stock market will share their point of view. Master of section: A. Salachenko, Financial Service on the Financial Markets of Russia (FFMS) Speakers: 1. V. Zubov, Federal Agency on financial monitoring 2. V. Pleskachevskyi, Property Committee, Government Duma of Russian Federation 3. V. Tarachev / V. Reznik, Credit organisations and financial markets Committee, Government Duma of Russian Federation 4. A. Salaschenko, Federal Agency on financial markets of RF 5. Eva Til, Head of TASIS EC “Corporate management” project 6. A. Korzhakov, Deputy Chairman, security Committee, Government Duma 7. S. Pilyaev, Department of Economic Safety, Ministry of Interior of Russian Federation 8. V. Krolovsy, Head of Supervision Department on execution of economic legislation, Prosecutor General’s office of RF 9. Alexander Branis, Director, “Prosperity Capital Management” 10. Vadim Kleiner, Director of Corporate research, Hermitage Capital Management 11. I. Kadirova, Technical Adviser on Legal Matters in improving mechanisms of corporate management, “Financial Market Development Centre” Fund Items: 1. Illiquidity, insiders, and manipulation as direct obstacles for competition development of Russian capital market at international arena; 2. Struggle methods with insiders and manipulation; 3. Blanks in the Russian legislation regulating offences at the securities market; 4. Perspectives to adopt the law “on inside information and manipulation at the stock market”; 5. Allusion of facts to use inside information and manipulations at the securities market; 6. European experience in struggle with insiders and manipulation; 7. Securities market and insiders at world’s stage. 18 Round table: Development of Private Equity market and venture capital in Russia. Government of the Russian Federation decided to create a “Russian venture company” with a capital of 15 billion rubles. This fund should help small innovative high-technology companies by investing into private venture funds. Funds allocated for the programme will be used to create 8 to 12 new venture funds, which will finance and develop up to 200 Russian small enterprises – “start-up”. Thus is formed a new market structure – industry of private investment that at the moment is poorly manageable, but carrying out an important task as it assumes great risks. Next step should be creation of government funds, what will become the base of interaction with individuals. In the framework of this section it is planned discussion of current direct and venture investment industry, experience of successful activity of funds and problems that they endure. The main issue will be the role of the government in development of venture industry: opportunities and threats which are born with appearance of state venture and investment funds. And also mechanisms of interaction between private business and given structures. During discussion legislative issues on enterprises will be mentioned, it will include those connected with implementation of venture investments through closed mutual investment fund, lack of quality investment 15
  • 16. opportunities, and other issues interfering effective functioning of the market. Possibilities of carrying out IPO of innovative companies at the Russian market and abroad and fundraising of venture funds will be considered. Organiser of section: RVCA, National Chain of Business-Angels Speakers: 1. Igor Gladkikh, Executive Director, RVCA (Russian Private Equity and Venture Capital Association) 2. Mikhail Gamzin, Director General, BF Russian Technologies 3. Ivan Rodionov, AIG 4. Irina Teplitskaya, Wermuth Asset Management 5. Genady Margolit, Deputy Director General, “FB MMVB” 6. Oksana Derisheva, Head of Listing Department, NP Stock Exchange “RTS” 7. Alexei Chekunkov, Managing Director, Delta Private Equity Partners. 8. Konstantin Fokyn, Ministry of Economic Development and Trade 9. Andrey Golovin, Adviser MMVB 10. Natalia Kondratyuk, Business-Angels “Private Capital” national network Items: 1. Creation of a Russian venture company and regional venture funds; 2. Government investment fund – new opportunities for private business?; 3. Fundraising in Russia and abroad; 4. Possibilities of raising capital at “mid-caps” at exchanges. IPO on alternative investments market (AIM); 5. Entry to the open stock market. What needs to be done for an effective allocation; 6. Infrastructure in support of venture enterprises; 7. Lack of quality investment medium; 8. Legislative obstacles in enterprises. 19 Round table: Harmony of CIS financial markets: legislation control. Integration of stock markets within the frame of CIS is especially relevant on the background of active negotiations for creation of common economic space (CES). However, establishment of a single market is complicated by different levels of stock markets and bank systems of CIS countries, specificity of property structure of issuers in each country, features of currency regulation and legislation at the securities market. Issue on liberalisation of Russian stock market stands for a few years now. However, according to legislative database, trade of securities of foreign issuers is impossible in Russia. With liberalisation of legislation the Russian market has a choice: to operate directly with shares of foreign issuers, or with receipts on them. RDR (Russian Depositary Receipts) will promote further Russian integration into world financial market and will broaden the spectrum of domestic market’s instruments, which lately are developing fast in that direction, in particular due to issue of corporate bonds and beginning of trade of Russian Eurobonds at the organised market. That way, the issuance of RDR still appears transparent on shares of emitters of CIS countries, which, if RDR is sponsored, will enjoy the opportunity to involve direct investments at the Russian market. Formation of single trade system also assumes single standards grants information, financial reports management, creation of single clearing system and estimates. Significant reforms should precede all specified changes in countries wishing to place funds in incorporated system; moreover, reforms should be fast and coordinated. Are CIS countries ready for it? Who needs in a greater degree a single stock market? Is it right to suppose that CIS companies are more interested in Russian capital then in Russian companies (capital of investors of CIS countries)? These and many other questions will be answered by representatives of CIS countries and analysts of stock associations. Master of section: Yvan Robu, Chairman of the National Commission on securities, Republic of Moldova Speakers: 1. Edward Muradyan, Chairman, Committee on Securities of the Republic of Armenia 2. Mikhail Djibuti, Chairman, Committee on Securities of the Republic of Georgia 3. Uran Abdynasyrov, Chairman, National Committee on Securities of the Republic of Kirgizia 4. Borozali Bekmatov, Chairman, Agency on Securities and Investments to the Ministry of Finance of the Republic of Tajikistan 5. Geidar Babaev, Chairman, Committee on Securities to the President’s office of the Republic of Azerbaijan 6. Oleg Mozgovoy, Chairman, Government Committee on Securities and Stock Market of the Republic of 16
  • 17. Ukraine 7. Vladimir Kharitsky, Member of Government Committee on Securities and Stock Market of the Republic of Ukraine 8. Bolat Zhamishev, Chairman, Agency of the Republic of Kazakhstan on management and supervision Financial Market and Financial Organisations of the Republic of Kazakhstan 9. Galina Shalgimbaeva, Adviser of the Chairman, National Bank of the Republic of Kazakhstan 10. Ivan Robu, Chairman, National Committee on Securities of the Republic of Moldova 11. Gyundyuz Mammadov, First Deputy Chairman, Government Committee on Securities of the Republic of Azerbaijan 12. V. Davidov, Chairman, Committee on Securities to the Board of Ministers of the Republic of Belarus 20 Business breakfast: Change in evaluation system of specialists of the financial market and licensing problems of professional participants. Within the framework of this business meeting is planned a discussion about situation on financial market specialists, transition to a new order of certification and conformity of certificates awarded by FCSM and FFMS of the Russian Federation, and certificates awarded by accredited organisations, rules of registration in registering certified persons. Participants of the market will be interested to know if it is planned to make changes to qualifying minima, issues of examinations, will the rules of qualifying examinations change. We think that the discussion will concern more specific questions, that is: what organisations will be eligible for accreditation, what will be the transition mechanism, where will go graduates that took the basic exam at the regional office of FFMS, but didn’t take the specialising one. During business breakfast opinions of participants of the market on the issue will be heard and a decision will be made. Presented by: Lilia Pilugina, SII Speakers: 1. Natalia Annenskaya, LLC IFC “Metropol” 2. Igor Borodin, JSC “MICEX Stock Exchange” 3. Alexei Burenin, Moscow State Institute of International Relations 4. Ya. Mirkin, Finance Academy 5. Denis Gavinsyi, Financial Service on the Financial Markets of Russia (FFMS) 6. Irina Guseva, Finance Academy 7. Tatiana Guseva, National Association of Securities Market Participants 8. Irina Danilova, NOMOS Bank 9. Vladimir Domnich, JSC “Srin” 10. Ekaterina Dudareva, “Troyka Dialog” 11. Dmitry Zaitsev, “Financial Market Development Centre” 12. Marina Zimina, Bank of Foreign Trade 13. Elena Engel, FFMS 14. Vera Khokhlina, National Securities Market Association (NSMA) 15. Larisa Sharova, The Professional Association of Registrars, Transfer Agents and Depositories (PARTAD) 16. Irina Nikitina, League of Management Companies of Russia 17. Larisa Kirillova, “Sberbank” of Russia 21 Section: Globalisation of the financial markets: missed opportunities and perspectives. Technical regulations at the financial market as a way to defend interests of national capital. How to protect national capital from the western financial institutions? What does entry into WTO mean for Russian stock community? Inter alia, will the Russian stock market be "pulled" into sovereignty zone? Financial institutions, on their own and through purchase of national financial institutions, for a long time have been aspiring to get into Russian market. Eight years of economic growth stimulate mergers and acquisitions process. Will the result for common Russian consumers be positive or negative? Is it necessary to limit work of western financial institutions in Russia? Majority of big players have the opportunity to manipulate. How to struggle against it? Or is there still no concept of the law on price manipulation? All over the world there is technical control for that purpose, participants of which are exchanges, investment and financial consultants. Why until now there is no effective mechanism of technical control in Russia? During this session we plan to discuss working conditions of Russian financial market in a new environment, 17
  • 18. particularly control of activities of foreign financial institutions in Russia, update of Russian financial legislature, political support of investment process, mergers, currency liberalisation and transboundary operations, as well as technical control of financial market and its participants. There will be also considered conditions that international financial market proposes. Furthermore, it is planned to discuss in detail issues of competitiveness of Russian and CIS financial markets. Organiser of section: Securities and Investment Institute (SII) Speakers: 1. Konstantin Korischenko, Deputy Chairman, Bank of Russia 2. B. Zlatkis, Deputy Chairman, “Sberbank” of Russian Federation 3. E. Myorova, Head of the Department of Trade Negotiations, Ministry of Economic Development and Trade 4. C. Tomlyanovich, Director, “Rosbank” depositary 5. N. Osadchiy, Analyst, Investment Company “Eurofinance” 6. R. Vardanyan, President, group of companies “Troyka Dialog” 7. D. Solovyov, Deputy Director, NP “National Depositary Center” 8. M. Medvedkov, Director, Department of Trade Negotiation, Ministry of Economic Development 9. B. Fedorov, Member of Board of Directors, JSC “GAZPROM” 10. M. Alexeev, Deputy Chairman, “ROSBANK” 11. A. Timofeev, Chairman, National Association of Securities Market Participants 12. Alexei Ribnikov, Director General, MICEX 13. Anna Trifonova, Vice-President, RTS Stock Exchange 14. Paul Arlman, Secretary General, FESE 15. Jon Edwards, Head of CEE & CIS, London Stock Exchange 16. A. Danilov-Danilyan, Chairman, Investment Policy, Chamber of Commerce and Industry of the Russian Federation Items: 1. Entry of Russia into WTO: problems and perspectives; 2. Accelerated creation of single regional capital market; 3. Formation of single technologies of entrance into world capital market; 4. Movement to a single regulator within the structure of CIS countries; 5. Control of activities of stock exchanges; 6. Procedure improvement of data-sheet. Optimal firmness of data-sheet; 7. Creation of a mechanism of fair pricing at the exchange market; 8. Demutualisation of stock exchanges; 9. Minimisation of operating risks. 22 Business breakfast: Investment programs of the Russian Orthodox Church. Attractiveness and demand for these programs at the Russian financial market. Within the framework of this business meeting a discussion is planned on basic directions of investment activity of the Church, investment projects suggesting investments of Church programmes for participants of the Russian financial market, use of closed share investment funds to finance projects of real estate reconstruction, as well as risks, advantages, and guarantees of financial investments into investment programmes of the Church. Master of section: Anatoly Gavrilenko, Chairman of Board of Directors JSC “ALOR INVEST” Focus group: professional participants of the equity market Items: 1. Investment activity of the Church as obligatory condition for revival of its economy; 2. Tasks and basic directions of investment activity of the Church; 3. Investment projects in the frame of investment programmes of the Church for participants of the Russian financial market, use of the closed share investment funds to finance projects of real estate reconstruction; 4. Risks, advantages, and guarantees of financial investments into investment programmes of the Church. 23 Seminar: Development perspectives of stock bonds. In its third, final reading State Duma has approved the amendment concerning introduction of new kind of securities – stock bonds. This document introduces a new concept into legislation – stock bond, thus increasing the 18
  • 19. list of investment instruments at the stock market. For issuers bonds will be an alternative for short-term bank credit and partially a bill. Using such instrument will be more attractive for liquid companies, which will not have problems to place their stock bonds on the market. According to experts, investors’ interest in stock bonds will be high. Problems with short-term financing caused by cash breaks, urge in updating operating assets and other reasons, are visible both in small and large companies. Engagement of a new instrument will be provided through advantages, which are incorporated in the mechanism of their issuance and circulation. For example, in comparison with regular bonds, advantage of the stock ones consists of absence of necessity for state registration and preparation of large issuing documents. In comparison with bills: stock circulation, absence of risks, connected to “paper” side of the bill, absence of bias which some investors possess in regards to bonds. In comparison with bank credit: all advantages which consist of public, tax-free loan. Under certain conditions, stock bonds may supersede completely from the market bills of large companies, which respond to demands of stock bills issuers. All together, potential of investors’ interest in stock bonds can be considered high. “Short” instruments traditionally are in demand during the uncertainty period, high risks of percentage rate growth for liquidity increase. However, specific attraction of stock bonds for investors can be mentioned only after a specific chain of conditions of its circulation is identified, that is: size and liquidity of loans, possibility of REPO operations, and their use as collateral at pawn crediting (incl. w/ “Rossia” bank). It can be mentioned that circulation at exchange will allow bonds to have more fair market quotations. Considering that stock bonds are short-term loan instruments (up to 1 year), it is useless to wait for emitters’ outflow from the traditional bonds market given that, in order to optimise their debt portfolio companies will still require long-term loans. Bank credits, on the other hand, as alternative to stock bonds, will loose their advantages. At the moment, only large and public companies ready to provide on a regular basis the stock market with information on results of economic activities, stocks of which are already circulating at the exchange and are included into demand list, or those that can easily pass the listing procedure, will be able to issue stock bonds. That is why many Russian companies will not have access to this instrument. As usual, one problem could not be avoided: for those who do not understand finances, confusion will start. The new tool is called “stock bonds”. Bonds, in fact, issuance of which is registered by FFMS, have their turnaround at exchanges and they should be called “exchange bonds”. Problem would be solved by giving them another name: “notes”, for example, but authors of legislature did not mature to that extent yet. Is there a rational grain to start new debt tools? How will appearance of stock bonds reflect on the market? Organiser: Securities and Investment Institute (SII) Speakers: 1. Vladimir Gusakov, Deputy Head, FFMS RF 2. Pavel Filimoshin, Deputy Head, Management of release and circulation control of equity securities, FFMS 3. Oleg Anisimov, Chief Editor, “Finance” magazine 4. Genady Margolit, Deputy Director General, MICEX 5. Andrey Lysenko, Analyst, East Capital (Moscow) 6. Alexander Ermak, Deputy Head, Department of Analysis of dept markets of “Region” Co. (Moscow) 7. Yuri Danilov, Senior Adviser on macroeconomics, Development Centre of Stock Market Fund (Moscow) 8. Mikhail Dmitriev, Head of project, dept markets of “Finam” investment company (Moscow) 9. Alexei Antonov, Deputy Director, assets management of “Olma” (Moscow) 10. Oleg Dushin, Analyst, “Zurich Capital Management” (Moscow) 11. Denis Valvichev, Head of Analytical Department, “Alemar” (Novosibirsk) 12. Evgeny Bersenev, Deputy Head of Analytical Department, IC “Evrofinanci” 13. Vitaly Kalugin, Director on asset management, IFC “Unikom Partner” 14. Elena Soldatova, Managing Director, “Prado banker & consultant” Items: 1. Preparation of normative base for stock bonds issue; 2. Current conditions and development perspectives; 3. Practical work aspects of professional participants of securities market with stock bonds. 24 Seminar: Creation of a company’s value. Author’s masters - classes of the Russian IR - the guru. “Key to the effective communication with investors and successful marketing of securities”. It is a must for focus 19
  • 20. group, i.e. participants of the stock market, representatives of investing community. During master-classes, experienced specialists of IR practice will introduce to participants of section the main mechanisms and nuances of interaction between emitter and financial markets. The purpose of master-class complex is to teach participants of section to sense factors influencing emitter’s securities liquidity, to acquaint the audience of section with tools influencing these factors. Guru IR will share with audience its practical experience with investors in communications area and will allude on how to formulate and realize highly effective strategy of ties with investors in view of factors influencing actives cost and specificity of functioning of the stock market. The basic attention within the framework of master-classes will be given practical reception and skills necessary for successful communication with investors. Speakers: 1. Andrey Slivchenko, Director, Corporate Finance and Relations with Company’s Investors, Pharmacies Network “36,6” 2. Vladimir Preobrazhenskyi, Deputy Director General on Economics and Finance, Chief Financial Officer, Siberian Coal Energy Company 3. Alexei Ivanov, IR-Director, “Evraz” Group 4. Alla Solovyova, Partner, Ansdell Associates 5. Alexei Kurach, Head on contacts with investors, JSFC “Sistema” 6. Vladimir Gerasimov, Director General, “Interfax-AFI” 7. Alexander Goldin, Stock Exchange MICEX 8. V. Ruga, Vice-President on Public Relations, TNK-BP 25 Seminar: How to encourage mid-cap companies to invest. How a company will develop? Where to find money to develop? To keep control or to sacrifice part of business and give companies a new push for development? These and other questions everyday puzzle owners of businesses. Within this section experts and specialists of leading companies will discuss various tools of attracting investments by mid-cap companies: business-angels funds, venture companies, and direct investment funds. Participants of this section will discuss modern methods of planning growth of’ the value of companies, quality improvement of management with the objective of improving capitalisation and entry into an organised public financial market. Modern technologies to increase the value of businesses and particularities of corporate management of companies will be reviewed. Practical examples will be given on how Russian companies attract investments and entry into open market through IPO mechanisms. Organiser of section: Securities and Investment Institute (SII) Speakers: 1. M. Kolchin, Managing Director, UFG-Invest 2. Vadim Kleiner, Director, Corporate Research, Hermitage Capital Management 3. Oleg Ivanov, Expert Council of the Committee on Credit Organisations and Financial Markets 4. Gennady Margolit, Deputy Director General, Stock Exchange MICEX 5. Oksana Derisheva, Head of Listing Department, NP Stock Exchange “RTS” 6. Evgeny Kogan, Managing Director, Investment Company “Antanta Capital” 7. Kirill Androsov, Ministry of Economic Development and Trade, (RVK) 8. A. Golovin, Adviser, MICEX 9. Dionis Gordin, Private Capital 10. I. Gladkikh, RVCA 11. Igor Ivanov, Deputy Director General, Insurance Company “RESO-Garantia” 12. Ruslan Gareev, Financial Direcotr, GC “Evroset” 13. Alexei Plesheev, Deputy Director General, “Energomash” Group 14. Sergei Stolbov, Director General, JSC “Khleb Altai” 15. Evgeny Torkhov, Head of the Department of Co-operative Financing “EVROKHIM” Company 16. Milana Pirogova, Adviser on Investments, International Financial Company (IFC) Items: 1. Investment opportunities for MidCap companies at the financial market; 2. Transfer to International Financial Reporting Standards; 3. Market of debt tools – first step to IPO; 4. Problems of start-up; 5. Securitisation as the financing tool – new work at the Russian debt market; 20
  • 21. 6. Increment of cost of business as the tool to make the company attractive; 7. Exit to the open share market. What has to be done for effective distribution; 8. IPO at the Alternative Investment Market (AIM); 9. Russian AIM; 10. The role of a stock exchange in development of share market of “second echelon": securities’ primary distribution and secondary circulation of companies of small and mid-size business; 11. Private distribution and call of direct investment funds; 12. Venture funds and direct investment funds. 21