Below we look at the status of Kostikov s new initiatives and his enforcement record. New Initiatives FCSM has announced a number of initiatives to minimize the risks to investors. The code itself will not be legally binding, but eventually, when additional legislation and regulations have been promulgated, it will carry the force of law. In the interim companies will be required to declare in their prospectuses if they are not complying with any aspects of the code. The code is expected to be finished by the fall of 2001 assuming necessary financial support is provided by the IFIs.
Rules requiring separation of clients and brokers accounts.
This will minimize the risk of the brokers' personal use of their clients money and will prevent clients money from being frozen along with the brokers' during a lawsuit. The Commission has already settled the overlapping issues with the CBR, Finance Ministry and Tax Ministry. The next step is to amend the Civil and Tax Codes, and set rules on accounting procedures. Proposed amendments to the Criminal Code to increase punishment for investor protection law violators. It also will seek enhanced coordination with law enforcement agencies.