Head of FBK Legal's Corporate Practice, Alexander Ermolenko comments upon the law on insider information

Head of FBK Legal’s Corporate Practice, Alexander Ermolenko in his interview to Izvestiya newspaper commented upon the law on insider information coming into effect. “Right now when the law becomes effective operation of the market professional participants and other entities the law refers to become more complicated, as it is necessary to draw up a considerable number of complicated internal regulations and submit additional reporting as well”, stated Alexander Ermolenko, Head of FBK Legal’s Corporate Practice. Besides, according to him, controlling authorities, from Federal Financial Markets Service to prosecutor’s office will receive additional “leverage” to influence business. “The law is passed because attracting overseas investors to Russian economy, at the moment, with the weak budget, is almost the principle factor for implementing modernization, decreasing long-term economic and social risks”, Ermolenko noted. However, the risks associated with its implementation decreased simultaneously. “This is why the law will be coming into effect slowly”, the expert summed up.