The Arbitration Committee Regulation

The Arbitration is one of the RAFMM bodies structurally composing the Executive Board. The RAFMM Arbitration is an arbitration agency adjudicating Association participants’ disputes in attitude of which participants joining the RAFMM membership come to an agreement about its unconditionally refer to the RAFMM Arbitration consideration. Joining the RAFMM membership means the assumption of an obligation to obey the Arbitration decisions. The Arbitration competence is based on the RAFMM Charter and Arbitration Regulation. The Arbitration activity is based on the principles of legality, confidence, independence, objectiveness, optionality, competitiveness and equality of the dispute parties, as well as correspondence to the Russian and international legislation.

The RAFMM Arbitration independently decides about presence or absence of its competence to adjudicate. If the RAFMM Arbitration makes a decision about the lack of authority or competence for the dispute adjustment, then disagreement will be proposed to the Russian Federation court of law.

The interference of any state body, local authorities, officials and other organizations is entirely excluded from the RAFMM Arbitration activity. According to the Arbitration Regulation both parties have a right to know about all points reasons of the opposite side before the judgment starts. Every participant has an opportunity to present evidences, file a petition, and bring out explanations, arguments and concerns in accordance with dealt question.

The judgment takes place on the Russian language if the dispute parties did not come to terms about other language. The party which submits documents on the other language provides its translation. The RAFMM Arbitration can require for the documents and other materials translation to the Russian language or to the language on which hearing of a dispute is taking place, if the sides agreed that it will be different from the Russian language. In other words if one of the Arbitration participants is a foreigner then discussion can be on the English language if the second party is not against it.

The structure, membership, number and meeting place of the RAFMM Arbitration is settled by the Arbitration Committee Regulation.

The Arbitration and other committees’ decisions are intermediate and always propose to the Executive Board consideration, where they are approved or canceled and sent to the reconsideration.

Content.

1. General provisions

2. Goals and objectives of the Arbitration Committee’s activity

3. Arbitration Committee’s competence

4. Arbitration Committee’s membership

5. Committee’s reorganization

6. Requirements for the applications (claims) considering by the Arbitration Committee

7. Decision making

8. Final provisions

1. General provisions

1.1. The present document regulates the Arbitration Committee (hereinafter "Committee") activity and includes key provisions concerning the Committee’s activity. Moreover, the present document establishes requirements for the Committee’s membership and complaints procedure admitted by the Committee.

1.2. Any provisions of this document are mainland in the Committee’s work and additional concerning Basic Regulations. Any contradictions to the Basic Regulations can be considered as the reason for reconsideration of the present document’s provisions in order and on terms described below.

1.3. The present document includes provisions concerning the Committee’s activity, decision tree, the Committee and document’s reorganization.

1.4. The Committee’s Regulation is an agreement about the Committee’s activities, which is considered as admitted by every Association’s participant, regardless of the Association’s participant status.

1.5. The present document can be extended by any additional specialized appendices or instructions in the case of corresponded decision making in order and on terms described below. Any appendix to this document or Committee’s instruction is an integral part of the present Regulation and should correspond and agree with its and Basic Regulations requirements. The appendix of the present Regulation is applicable to all Committee’s business lines, and the instruction can describe the specific (separate) line of activity.

2. Goals and objectives of the Arbitration Committee’s activity

2.1. The Committee is an integrated part of the Russian Association of Financial Market Members (hereinafter "RAFMM"). The main Committee’s goal is regulation of the intercourse between professional financial market’s participants.

2.2. The Committee’s business priorities are:

1. The standard setting of intercourse’s regulations between professional financial market’s participants.

2. Development of the unified procedure drafting and examination of a claim.

3. Examination of financial market participants’ claims in order and on terms determined by the present Regulation.

4. Situation assessment represented in the complaint procedure by the financial market’s participant.

5. Recommendations making to the RAFMM Executive Board according to discussed situation.

6. Assistance in conflict resolutions between financial markets’ participants.

7. Counteraction the fraud in the professional sphere of action of the financial markets’ participants.




2.3. The Arbitration Committee’s major working principles are:

1. Objectivity, relevancy and impartiality of the passed assessments.

2. Openness of the made recommendations to the Executive Board.




2.4. The net working results are:

1. The unbiased assessment of the (conflict, dispute) situation stated by one of the financial markets’ participant using the complaint procedure.

2. Recommendation to the RAFMM Executive Board concerning decision which can be made on this matter.

3. Assistance in the conflict resolution.




3. Arbitration Committee’s competence




3.1. The Arbitration Committee’s competence includes the expert judgment of the (conflict, dispute) situation which emerged between two or more financial markets’ participants and is concluded on the basis of analytical committee’s specialists work with documents, provided by the financial markets’ participants, concerned to the situation, with the following work results’ delivery to the Executive Board consideration.




3.2. the Arbitration Committee consideration in accordance with present Regulation can be presented:

1. The claim (request) made according to the present Regulation.

2. Other documents attached by the applicant as proofs in order that they are directly refer to the situation if this does not contradict the present Regulation.

3. Information about process and/or results of the situation consideration described in the claim, if such examination has occur at the level between financial markets participants which are the dispute parties of the considering situation.







3.3. According to the results of the application’s pendency of the one financial market participant to the other, the Arbitration Committee can recommend to the Executive Board to take measures for the purpose of the dispute adjustment.




3.4. The assessment or recommendation of the Arbitration Committee can be contested by the Executive Board, if at the Executive Board’s voting according to the Arbitration Committee’s activity results more than 75% of the votes will be given in favour of this result’s cancellation.




3.5. The Arbitration Committee can influence any processes of the Executive Board’s consideration of the conflict (dispute) situations between financial markets’ participants by providing additional information (the results of the analytical work) to the Executive Board.




3.6. The Arbitration Committee can be drawn by the Executive Board or another committee to the examination of the other different objects connected with financial markets, in the case if it is necessary, by giving written notification (as well as in electronic format) to the committee by the participants of the consideration’s committees-initiators.




4. Arbitration Committee’s membership




4.1. To the Arbitration Committee’s membership can be included only professional financial markets participants from the RAFMM membership, whose professionalism is confirmed by the presence of work experience as a leader of the highest or middle link in the company, which is a professional financial market participant or with the appropriate certificate, given out by regulatory body in accordance with the regulatory and legal base of the country under jurisdiction of which it falls or the financial market participant is a citizen of it.




4.2. The Arbitration Committee’s membership is set up by the open voting of the all RAFMM participants, subject to the paragraph 4.1. of the present Regulation. The candidate to the Arbitration Committee can be nominated by the one of financial market participants who is the RAFMM member. Also, the nomination of oneself is allowed. Each candidate to the Arbitration Committee’s membership must line up no less than 50% votes plus one during the voting. If none of the candidate line up necessary quantity of votes during the regular voting, the general meeting of RAFMM participants is set, and after it the revote is take place.




4.3. In the presence of reasonable claim from the one of the RAFMM participant, to the Arbitration Committee’s membership can be temporary included the one or several additional participants, whose authority can applied only to particular application pendency. Such additional participants can be accepted to the Arbitration Committee’s membership as advised by the Executive Board or the RAFMM President.




5. Committee’s reorganization




5.1. The Arbitration Committee can reorganize its own structure by admission of a new member from the RAFMM participants or excluding members from the active participants of the Arbitration Committee.




5.2. Two alternative variants of the Arbitration Committee’s reorganization are:

1. In the case of the admission/exclusion Arbitration Committee members at the initiative of the one Arbitration Committee’s participant the vote is took on the principle of the votes’ majority.

2. In the case of the admission/exclusion Arbitration Committee members at the external initiative the vote is took by Executive Board at the principle described in the paragraph 4 of the present Regulation.




5.3. The Arbitration Committee’ participant can be certainly (without voting) excluded from the Arbitration Committee’s membership, if the fact that at decision making he had a mercenary motives (was bribed by one of the parties) will be proved.




5.4. In the case, if anybody is putting a strain on the Arbitration Committee’s participant for the purpose of the defining adjudication, the Arbitration Committee participant induced by this pressure must inform the RAFMM Executive Board or the RAFMM President immediately. Otherwise, if the fact of such pressure will become known after adjudication, the decision must be reconsidered, and the Arbitration Committee participant concealed the fact of the exerting pressure can be excluded from the Committee’s membership on request of the Executive Board or the RAFMM President.




6. Requirements for the applications (claims) considering by the Arbitration Committee




6.1. The request (claim) applied by one or group of financial markets’ participants for the Arbitration Committee consideration, can be accepted only in the case if it is concerned to the event which actually had happen and it must contain the following points:

а) The name (denomination) of the financial markets’ participant for that being the adverse side in the request (claim) - in whose address the claim is composed;

b) The significant facts, stated by applicant according to the considered situation;

c) The significant proofs, applied by applicant to the request (claim) as the argumentation;

d) The wishes of an applicant concerning to the possible solution by the considered situation with the references to the appropriate regulating documents, which are determining the relationships between the financial markets’ participants;

e) The documents (including electronic), which testify about the attempt of the applicant to solve situation by the means of negotiations and giving the clear idea about the solution, carried out on this question or confirming the fact of the contrary side’s rejection, which figures in the application (claim) from the consideration of this problem by the means of negotiations.




6.2. The claims according to the expected (possible) situations, actions or concerning the possible (probable) events do not admitted under consideration of the Arbitration Committee.




6.3. In the case of the impossibility to provide documents, described in the item 6.1.(d), the opposite party’s reason for rejection, described in the request, is established directly by the Arbitration Committee.




7. Decision making




7.1. Arbitration Committee’s decision-making process is divided to the next procedures:

а) The primary pendency of the financial markets participant’s application by the one of the Arbitration Committee member for the purpose of the setting up the correspondence to the present Regulation and presence in it the essential requisites, specified by the present Regulation. According to the results of such consideration, the request (claim) can be delivered for the further approval or returned to the applicant for the completion with specified reasons (missing requisites);

b) The request for the additional information from the both sides (if it is necessary for the further consideration). In particular, the log-files, scanned or other documents can be requested, which are needed for the adjudicating the fair, unbiased and deliberate expert assessment regarding the considering situation;

c) The convening of the Arbitration Committee’s meeting for the purpose of the situation approval and passing assessment. During such procedure both sides must be heard compulsory;

d) Rendering and issuance of the Arbitration Committee’s decision with subsequent referring of the present decision to the Executive Board.




7.2. The main result of the pendency of an application (request) by the Arbitration Committee participants are admitted the following (alternative) types of assessments:

а) The applicant’s claim requires the adjustment in full;

b) The applicant’s claim requires the partial adjustment (including the motivation and level of the claim’s adjustment);

c) The applicant’s claim is wrongful and must be rejected.




7.3. Besides, the Arbitration Committee can recommend using for the one or another party the certain stimulation methods specialized by the RAFMM regulatory documents.




7.4. The consideration result is accepted by the Arbitration Committee participants by putting for voting different decision variants, which can be set forward by any Arbitration Committee participant or joint (pressure) group.




7.5. The decision which got the majority of voices is admitted as a result of the Arbitration Committee consideration. In case if none of the variants do not get the majority of voices, the Arbitration Committee participants take additional consultations (meetings) and agreements; according to these results the new voting is set.




8. Final provisions




8.1. The present document includes the description of all activities of the Arbitration Committee participants in the frameworks of the Committee’s competence.




8.2. The document can be amended or revised by rectification after Arbitration Committee voting in case if more than 75% votes were for the amendments acceptance.




8.3. The document can be amended or revised by rectification after Executive Board voting in case if more than 75% votes were for the amendments acceptance.




8.4. The document can be amended at the RAFMM President’s initiative.




8.5. The Arbitration Committee’s activity is realized by decisions making in the case of consultations and thorough analysis of the considering objects. The Arbitration Committee’s participants can express dissent with each other by voting and also by negotiations.




8.6. The Arbitration Committee’s competence, determined by the present document, is full in the degree as it does not contradict the Basic Regulations.