The Russian securities regulator, the FSFM, has recently adopted legislation that outlines the registration procedures for prospectuses of foreign issuers who would like to admit securities for placement and/or public circulation in Russia, under Order No. 12-10/pz-n, dated March 6, 2012 (the Order). Prior to the adoption of this legislation, Russian regulations did not specify the procedure for registration of prospectuses of foreign issuers in Russia, thus effectively preventing foreign issuers from placing or publicly offering their securities to Russian investors.

The Order fills this gap by specifying in detail the FSFM review process, providing a list of documents required for the registration and listing the grounds on which the registration may be denied. The Order must be officially published before it comes into legal effect; however, the exact date of publication has not yet been announced. This provides an opportunity to Russian stock exchanges to attempt to compete for issuers willing to raise capital in a jurisdiction with significantly less strict disclosure and other obligations associated with public listings, as compared to traditional financial centers (such as New York and London) and is one further step in building a robust financial services industry in Russia.