THE FINANCIAL MARKETS REGULATOR TAKES OVER THE INSURANCE REGULATOR

Following the Decree of the President No. 270 of 4 March 2011, the Federal Insurance Supervision Service (the Russian Insurance Regulator) was merged with immediate effect into the Federal Financial Markets Service (the "FFMS"), which is now a single authority for the regulation and supervision in the financial services market (except banking and audit). Under the Decree, the Government shall ensure proper supervision over the insurance market in the interim and pass legislation to allocate legislative and regulatory functions between the Ministry of Finance and the FFMS in two months' time. In practice this may mean a shift of the legislative and regulatory functions to a higher-rank authority.