The Russian Federal Act on holding personal data of Russians using the local database has come into force.
TA law, that allows citizens to declare bankruptcy officially and get rid of credit burden, took effect in Russia on October 1. Persons can be declared bankrupt upon a creditor’s request if the total amount of debt exceeds 500,000 rubles ($7,600) and they have missed at least three months of payments.
At the same time individuals should be insolvent. In other words, after monthly payments individuals should have less than subsistence minimum. In this situation, it is impossible for a person to pay utilities or contain children under the 18 years, so the best way is to initiate bankruptcy proceedings. The insolvency should be established in the court.
Bankrupt should leave the apartment, which is his only residence. At the same time the other property should be sold out, as well as car, motorcycle, boat and even bicycle, if it is not a way of earning.
The proceeds from the sale of the property would be spent for pay debt. At the same time bankrupt is released from paying various fines and penalties, which are accrued during the delay time of debt. Even through all the money from the sold property is not enough to pay debt, the bank would not claim anymore.
But there is a flip side of bankruptcy: the bankrupt will not be able to hold key positions at three years and travel abroad during the procedure of bankruptcy.
According to the specialists' research more than half a million Russians are potential bankrupts. However, regarding all borrowers it is only 1.5%. But now, with the entry into force of the new law, number of people wishing to take advantage of such opportunity has increased, as today more than 6 million Russians are not paying on their loans more than 90 days.
The document provides countrywide duty of holding Russian citizens personal information which are used by Internet servers. Thus, operators have to make a record, systematization, accumulation, holding, clarification (update and changing) and import of Russian citizens’ personal information.
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Moreover, Russians have the right to claim for removal of their personal data if it’s posted on the Internet in violation of law.
Besides, the Act provides establishment of the Register of disturbers of personal data subjects’ rights. The Register will contain data about websites with information processed in violation of the Russian legislation. The Russian Government Decree dated August 19, 2015 ¹ 857 “On the automated information system" Register of disturbers of personal data subjects’ rights” also came into force.
Many major companies operating in Russia, such as "Vkontakte" and “Mail.Ru Group”, have already declared that the personal data of their social network’s users is always kept on the territory of Russia, so new requirements wouldn’t provide any difficulties. The company “Enter” is also ready to the Act – its servers are located in the territory of the Russian Federation.
Read more: http://www.garant.ru/news/648095/
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The Russian Federation Council Approves Forex Law
The law outlining the establishment of regulation in the Russian foreign exchange market has passed another legal phase, to take effect in Octobers 2015 as brokers will have to obtain a license by January 2016.
As expected, the Federation Council, the upper chamber of the Russian parliament, has approved today the much-awaited Forex law during the closing session of 2014. The law, officially presented as “Amendments to Certain Legislative Acts of the Russian Federation,” is meant to establish a regulatory framework for trading in the OTC market in Russia.
Starting from October 2015, all existing and new brokers would have to obtain a license by a Self Regulated Organization (SRO), which will be operating under government supervision. After January 2016, brokers without a license will be forced to shut down.
The bill outlines the limitations brokers will be facing, most notably the leverage ratio they can offer, set between 1:50 to 1:100.
Another major point worth mentioning is that CFD and binary options trading has not been included into the bill in any form. Therefore, depending on interpretation of the law, a binary options broker could offer services in Russia without a license. Also, foreign firms are not governed by the new laws. But there is market speculation that Russian lawmakers may apply measures to limit trading with unregulated foreign brokers such as warnings or blocking websites. With the structure of the law providing flexibility, however, guidelines towards CFDs, binary options and foreign brokers can easily be changed in the future.
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Accreditation of branches and representative offices
Reregistration of branches and representative offices with the FTS
Pursuant to the Regulation of the Government of the Russian Federation dated December 16th, 2014 no.1372, starting from January 1 st, 2015 the Federal Tax Authority of the Russian Federation is in charge of accreditation of branches and representative offices of foreign companies.
Previously both the Chamber of Commerce and Industry of Russia and the State Registration Chamber of the Ministry of Justice of the Russian Federation were involved in such activity. For reference, the certain accreditation authority has been granted to the Inter-District Office of FTS of Russian no.47 of Moscow. Until April 1 st, 2015 all branches and representative offices of foreign companies having a valid accreditation or registration by the said above time must file certain document to the authorized state authority for the purpose of registration in the relevant state register. In case of failure, the relevant accreditations and permissions shall cease to exist starting from April 1 st, 2015. Please note that in this case both branch and representative office shall continue to exist in fact, however, such activity will breach the applicable legislation. In this case the registering authority (i.e. FTS of Russia) may initiate an investigation on the relevant law violation.
For the purpose of a due termination of both branch and representative office the relevant procedure shall be implemented. Branches and representative offices with the accreditation term expiring in January 2015 shall be entitled to approach the Inter-District Office of FTS of Russian no.47 of Moscow for prolongation of accreditation within February 28th, 2015.
Personal accreditation of employees
Starting January 1 st, 2015 foreign citizens engaged for employment in either a representative office or a branch of a foreign company are subject to accreditation within the limits of a number of employees which shall be introduced in the state register of accredited branches and representative offices of foreign legal entities. The document confirming exercising of a personal accreditation shall be the personal accreditation certificate. The personal accreditation procedure as well as the relevant accreditation certificate form shall be adopted by the Chamber of Commerce and Industry of the Russian Federation.
New requirements for the Regulation of a branch/representative office of a foreign legal entity
The regulation of a branch/representative office of a foreign legal entity shall now contain the following:
Name of a foreign legal entity, its branch or representative office;
Form of a foreign legal entity's incorporation;
Location of its branch or representative office at the territory of the Russian Federation as well as the location address of a foreign legal entity in the country of registration;
Purposes of establishment as well as business activity types of a branch or a representative office;
Management procedures of a branch or a representative office of a legal entity;
Other particularities of activity implemented by either a branch or a representative office at the territory of the Russian Federation which shall not contradict to the legislation of the Russian Federation.
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