The National Association of Securities Market Participants (Russian: Национальная ассоциация участников фондового рынка, abbreviated НАУФОР), commonly known as NAUFOR, is a self-regulatory organization (SRO) in the Russian financial market that functions as an industry association and quasi-regulator for professional participants in Russia's securities markets.
Overview NAUFOR is a non-profit, industry-wide self-regulatory association that unites brokers, dealers, asset managers, investment advisors, custodian banks, registrars, investment fund management companies, specialized depositories, and other licensed professional participants in Russia's securities ecosystem. It is the only SRO in Russia that simultaneously regulates brokers, dealers, registrars, asset managers, investment fund management companies, and specialized depositories. Membership in NAUFOR is mandatory for certain categories of financial firms under Russian law, meaning that broker-dealers and other professional securities market participants must join an SRO to operate legally in the Russian market. As of the end of 2024, NAUFOR had 686 members, comprising 498 non-credit financial organizations, 179 banks, and 9 individual entrepreneurs. The organization is headquartered in Moscow with representative offices in Saint Petersburg, Kazan, and Yekaterinburg, and employs approximately 69 staff members.
History
Formation (1994–1996) NAUFOR's origins trace back to 1994, when 15 companies holding top positions in the Russian stock exchange market united to form the Professional Association of Securities Market Participants. The primary goal of this initial association was to introduce unified rules for processing financial documents and supporting information transparency in the financial sphere. On 30 November 1995, the organization was formally declared as a Russian self-regulatory organization, though 21 June 1996 is considered its official date of registration. This period coincided with the broader development of Russia's post-Soviet securities market infrastructure and legal framework, including the adoption of the Federal Law No. 39-FZ "On the Securities Market" on 22 April 1996.
Regulatory evolution (1996–2013) During this period, NAUFOR operated alongside other regulatory bodies in Russia's financial markets. Until 2013, the organization worked in coordination with the Federal Financial Markets Service (FSFM), which was established in 2004 as the primary government regulator for securities markets, insurance, and other non-banking financial activities. NAUFOR and the FSFM together represented a two-level regulatory structure intended to oversee the Russian financial market.
Transfer of oversight to Bank of Russia (2013–present) On 1 September 2013, the FSFM was disbanded by presidential decree, and its regulatory functions were transferred to the Central Bank of Russia (Bank of Russia). Since then, the Bank of Russia has served as the primary government regulator maintaining a register of SROs, including NAUFOR, and providing oversight of their activities. In 2023, NAUFOR consolidated self-regulatory functions for seven types of activities and became the SRO for registrars in addition to its existing mandates. This consolidation resulted in a 48% increase in membership that year.
Legal status and regulatory framework NAUFOR operates as a self-regulatory organization under Russian financial market legislation. The Bank of Russia maintains an official register of SROs in the financial market, which currently contains 11 participants, including NAUFOR. Under Russian law, professional securities market participants are required to maintain mandatory membership in at least one self-regulatory organization. This mandatory membership requirement is established in Federal Law No. 39-FZ "On the Securities Market" and subsequent legislation governing financial market activities. The Bank of Russia exercises oversight over NAUFOR's activities, approves its basic standards, and can issue mandatory instructions to the organization. NAUFOR, in turn, is authorized to develop and enforce internal standards that complement state regulations, creating a two-tier regulatory system.
Membership
Membership structure As of December 2024, NAUFOR's 686 members included:
253 brokers 279 dealers 179 asset managers 257 custodians 310 investment fund management companies 31 registrars 28 specialized depositories 101 investment advisors 2 joint-stock investment funds By institutional type, members comprised 498 non-credit financial organizations, 179 banks, and 9 individual entrepreneurs.
Membership requirements Membership in NAUFOR or another recognized SRO is mandatory under Russian law for entities licensed to conduct professional activities in the securities market. Licensed professional participants must join an SRO that corresponds to their licensed activities (e.g., brokerage, asset management, custody) in order to operate legally. Members are subject to both basic standards approved by the Bank of Russia and internal standards adopted by NAUFOR. Failure to comply with these standards can result in disciplinary measures, including reprimands, warnings, fines, or recommendations for expulsion.
Functions and activities
Standard-setting and regulation NAUFOR develops and maintains standards that govern how its members conduct securities market activities, including compliance procedures and professional conduct expectations. The organization participates in Bank of Russia committees to draft basic standards and independently adopts internal standards for specific activities. As of 2024, NAUFOR oversees compliance with 11 basic standards and 17 internal standards regulating various financial market activities. These standards cover areas such as:
Brokerage and dealing operations Asset management activities Custody services Investment advisory services Registrar activities Specialized depository operations Protection of investor rights and interests Risk management and conflict of interest prevention Information disclosure requirements
… excerpt ends here. Continue reading the full article.
