All the nonbank lending organizations (NLOs) will be obliged to conduct regular audits of financial situations. There will be set down additional criteria for the managers of nonbank lending organizations. These will need to have higher education in the areas related to economic sciences and law and at least two years’ experience in relevant areas. This is provided in a bill that was given a final reading by Parliament, IPN reports.

The bill contains clauses concerning the suspension of the activity of NLOs that violate the normative framework. The NLOs will be able to resume work after the violations are removed. If the circumstances that led to the suspension of activity are not dealt with by the set time limit, the supervisory authority will strike the organization off the register of NLOs. In such conditions, the NLO will be unable to apply for reregistration.

The managers and persons who own or control at least 50% of the share capital or voting rights of the NLO that was earlier struck off the register for non-removal of violations will be unable to manage or own a NLO.

Also, the NLOs will be authorized to found or liquidate new branches or secondary offices. The bill sponsors said the new law is designed to improve the quality of corporate governance at nonbank lending organizations.