Recognition FCA of UK Russian "NAEN Code " - a breakthrough in recognizing the quality of domestic evaluation in attracting investment

Before appreciating the importance of this recognition, we should elaborate on what the FCA is and what its standards are and what role a license from this body plays for companies operating in the global financial market.

FCA (Financial Conduct Authority) is a non-governmental body of Great Britain, which regulates and controls financial institutions: banks, investment funds, brokers, insurance and mortgage companies, financial advisors. The main task of the organization is to control the financial activity of this or that structure in order to exclude any fraudulent schemes. It demands maximal honesty, informativeness and transparency from regulated companies, that's why for a client an FCA license is a guarantee of reliability for the company, i.e. the highest degree of trust.

In the case of non-standard or force majeure situations, the regulator promptly resolves them, as well as:

• continuously monitors licensed companies ahead of financial problems;
• guarantees compensation of financial losses (up to 50,000£) to customers if the company goes bankrupt, while at the same time supervising the bankruptcy process;
• If fraudulent actions are detected, it immediately blocks the fraudsters' accounts, revokes the license and informs the global financial community.

Not surprisingly, clients and investors prefer FCA-licensed financial companies, knowing that they will be protected from fraud or any unforeseen situations.

In May 2022, the Russian "NAEN Code" - that is, the public reporting standard developed by the National Association for Subsoil Examination (NAEN) under the leadership of Andrei V. Tretyakov and the Society of Russian Subsoil Experts (SSE) was recognized by the British regulator as fully complying with the strict FCA criteria. This, firstly, means that the NAEN Code has received international status and has taken an honorable place among the world's reference standards, and secondly, demonstrates the highest professionalism of Russian specialists and competent interaction of the NAEN director А. V. Tretyakov with influential international organizations.

This status opens up great opportunities for attracting Russian and foreign investors to the extractive industry. It is especially important in the context of the sanctions policy pursued by the West against Russia. The ban on investment in the Russian economy forces companies engaged in the development and use of mineral resources to seek financing both within the country and in countries that have not joined the anti-Russian sanctions. And here the trust of investors, which is provided by the NAEN Code, recognized by the FCA - by the way, the only standard not only in Russia, but on the entire CIS territory, plays a decisive role.

Andrey Tretyakov stated about the need to address the Russian Federation leadership on the issue of implementing the NAEN Code for financial institutions and stock exchanges at the recent mining and geological forum "Mingeo". According to him, the standard of public reporting developed by NAEN and recognized by FCA will give potential investors a clear understanding of the real value of assets at the moment. And annual reporting on all items of subsoil use will demonstrate the openness and transparency of enterprises working in this area, which will have a positive impact on the investment attractiveness of both individual facilities and the state. At the same time sovereign independent audit conducted in accordance with international standards will serve as effective control of financial activities of companies related to development of subsoil and use of mineral resources.