About PARTAD

PARTAD

Overview.

The Professional Association of Registrars, Transfer Agents and Depositories (PARTAD) is one of the first self regulated organizations (SRO) of the professional russian securities market participants and it exercises its activity for more then 13 years. Today, among the Association's members are the major registrars, depositories and specialized depositories. PARTAD was created in 1994. In 1997 it became a self-regulated organization of registrars and depositories. In 2000, these were joined by clearing houses, and since 2003 it regulates the activity of specialized depositories in case of joint investment institutes control (as auxiliary for depositories activity).
The supreme body of the Association is the general meeting of its members. The general management of the PARTAD activities is performed by the Board of Directors. The Management Board of PARTAD is a collective executive body responsible for the day-to-day running of the organization.
The basis of the PARTAD activities is the work of the core Committees of the Association, whose members are representatives of the stock market leaders. PARTAD has the Committee for organizational and juridical support of the accounting institutes activity, Committee for standartization and technological development, Committee for control over collective investment, Disciplinary Committee. The Committees have Working Groups formed for the purpose of drafting documents required at the current stage of the stock market development.
On the basis of the information collected in the PARTAD databases, the scientific, research and training division of the Association, PARTAD Infrastructural Institute (INFI) assigns ratings to Registrars (http://www.reestring.ru), depositories and specialized depositories ( http://www.safedepo.ru), which are published by the leading printed media and information agencies.
INFI prepares and releases guidance manuals, information prospectuses, various kinds of scientific and research documents, and provides training in different aspects of recordkeeping organizations' activities.
The principal advantages of PARTAD membership.

The organizations that PARTAD members have a real opportunity to influence the development of the securities market regulation. Opinions of PARTAD members, which is summed up by the Committees and Board of Directors of the Association are brought to the attention of the regulatory authorities. PARTAD cooperates with the legislative bodies in drafting and improving the legal and regulatory framework, primarily of the Laws "On the Securities Market", "On Joint-Stock Companies", "On Investment Funds".

PARTAD initiates legislative and regulatory base improvement for the implementation of new technologies including electronic data interchange (EDI) facilitating the reliability of accounting system. PARTAD members have the opportunity to acquire advantage on the basis of its materials on the EDI.

Association is working on the transition of professional participants-members of PARTAD on system of electronic transfer of reports to FFMS by means of PARTAD. In the network of the PARTAD activity on using the technologies of the electronic data interchange in the accounting system the Management Board of the Association has adopted The Rules of the Electronic Data Interchange (EDI), Regulations of the Certificate Attestation Centre (CAC) and the Terms of issuing the electronic-digital signature key certificates of CAC PARTAD as the Organizer of electronic data interchange system.

The Association carries out certification of the software used in the activities of registrars, depositories, and specialized depositories by testing the software provided by developers.

On 28 November 2006 PARTAD received the certificate of accreditation in the FFMS as the organization carrying out the assessment of the financial market experts. For PARTAD members passing through qualifying examinations is free of charge. At present PARTAD organizes reception of qualifying examinations on the following specialities.

basic qualifying examination

broker, dealer securities management activities (first series examination)

organization of trade and clearing activity (second series examination)

maintenance of share registers of the registered securities (third series examination)

depository activity (forth series examination)

maintenance of investment funds, unit investment funds and non-state pension funds (fifth series examination)

the activity of specialized depositories of investment funds, unit investment funds and non-state pension funds (sixth series examination)

PARTAD establishes rules and standards for the activities of maintaining records of securities ownership, compliance with which ensures the quality of work of the Association's members on the stock market. The standards of professional activities of registrars, depositories, and clearing organizations are updated regularly and become the basis for introduction of changes in statutory acts of the FFMS.

PARTAD provides consultancy services over the market participant's compliance to the PARTAD Standards and statutory acts in form of visiting expertise. For PARTAD members this procedure is free of charge.

PARTAD protects the interests of its members in the event they are treated unjustly by the state authorities, and the interests of securities owners and clients of professional market participants that are members of PARTAD.

PARTAD provides consultancy services to its members, holds free conferences and roundtables for PARTAD members, and organizes meetings of industry members with representatives of legislative and regulatory authorities.

PARTAD members may use the Methodological Recommendations on the Internal Control execution, drafting of the Rules for Carrying Out Depository Activities, maintenance of share registers, and on the Document Interchange between a Specialized Depository and the Non-state Pension Fund (NPF), etc.

PARTAD supports the implementation of technological processes in accordance with the target programs adopted by PARTAD on risk management, information disclosure, software certification, signature guarantee, and granting qualifications to staff.

The Association created unique databases, "Russia's Depositories" (http://www.rusdepo.ru), "Russia's Registrars" (http://www.rusreestr.ru) , and RETAN, a database on Registrars, issuers, re-registration agents and nominees (http://www.retan.ru). Publication of information in the PARTAD databases enables PARTAD members to present information about them in a vivid and effective manner, which ensures online 24/7 access to the information. The support and timely update of the information in the database is free for PARTAD members.

Among the self-regulatory organizations uniting securities industry professionals, PARTAD enjoys an excellent reputation for its expertise in risk management of recordkeeping institutions. Within the framework of the Programme underway since 1998 to develop and implement a system of measures to reduce the risks inherent in the professional activities on the stock market, PARTAD is giving its recommendations on risk management and requirements imposed on insurance contracts and insurance providers insuring registrars and depositories.

All documents developed by PARTAD are available to its members at the PARTAD's website: http://www.partad.ru.