Internal reporting of professional participants of the securities...

Internal reporting of professional participants of the securities market

The main purpose of organizing accounting on the basis of accounting registers and internal reporting of professional participants of the securities market is the formation of complete and reliable information on transactions with securities, as well as ensuring control over their activities by customers, self-regulatory organizations and the federal executive body for the securities market.

Internal accounting of transactions, including futures and securities transactions, is an orderly system for collecting, summarizing and reflecting information in terms of value and quantity about all transactions made by professional participants, through continuous, continuous and documentary accounting, as well as emerging as a result of their commitment.

The objects of internal accounting of professional participants are:

1) transactions, including futures and securities transactions, committed:

• on the basis of a commission agreement (commission) or an agency contract in the interest of the client;

• on the basis of a contract for the management of securities and funds intended for investment in securities;

• in their own interests;

2) transactions with securities not related to sales transactions, as well as actions that do not entail a change or termination of rights, but which are essential for determining them, being the object of transactions or rights certified by such securities ;

3) securities, futures contracts and options that are the subject of the transaction;

4) funds intended for transactions with securities, futures contracts and options, or obtained as a result of transactions with securities, futures contracts and options;

5) Other objects of internal accounting of a professional participant.

The federal executive body for financial markets sets uniform requirements:

• to be managed by professional securities market participants engaged in brokerage, dealership and securities management activities, internal accounting of transactions, including futures transactions and securities transactions;

• the content of the rules of conducting internal accounting of transactions, including futures and transactions with securities of a professional participant, developed by them;

• keeping professional accounts of internal accounts of cash and securities, futures contracts and options;

• drafting and submitting to clients reports on transactions, including futures transactions, and transactions with securities made in the interests of customers.

Professional participants carry out the maintenance of internal accounting separately from the accounting of financial and economic activities. Practice shows that in the organization of internal and accounting accounting, various objectives are pursued. This rule is one of the most important, since the management accounting of the company consists in the organization and functioning of internal accounting directly for the purposes of the company itself, and accounting mainly serves to identify the result of production and economic activities and the preparation of financial reporting documents for government control.


Internal accounting rules

Professional participants develop their internal accounting rules independently.

In this case, they must always comply with the following conditions:

1) transactions with securities made by professional participants, both on their own behalf and on behalf of customers, must be reflected in the internal accounting registers not later than the end of the business day following the day of the transaction;

2) internal accounting of own funds and securities of professional participants should be separated from the account of funds and securities of clients. To fulfill this condition, professional participants to each client open and maintain separate accounting accounts in the internal accounting system, which should be numbered according to the internal order of account numbering in the accounting system. The purpose of these actions is to distinguish between the accounting of securities and funds of customers and professional participants;

3) professional participants are required to regularly report to their clients on the results of transactions with securities committed in their interests. This reporting should reflect the cash and securities balances on the client's accounts, as well as all transactions using its funds and securities.

The rules for internal accounting of transactions should include:

• rules of internal document circulation, including a description of the procedure for passing documents that are important for maintaining the internal accounting of a professional participant, including determining the form of internal accounting;

• the procedure for determining the time zone when drawing up and processing internal documents of a professional participant;

• Typical forms of instructions of the client and administrative notes, requirements for their registration;

• the procedure for creating and maintaining a register of customer orders;

• rules of reference and a list of accounts of internal accounting of cash and securities, futures contracts and options, requirements for their content and processing;

• list and standard forms of internal accounting registers, requirements for their registration, maintenance and management;

• a list of information contained in the accounts of customers, the requirements for design and content, the order, timing and ways to present it to customers;

• the procedure for keeping the internal account of the branch of the professional participant, establishing the list of information provided by the branch, and the timing of the provision of information on transactions;

• the procedure and terms for holding professional participants of established reconciliations of the availability of funds and securities, as well as the procedure for drawing up acts of their registration;

• the order of archiving and storage of internal accounting documents;

• the order of making changes and additions to the rules of internal accounting.

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