ISIN Codes CFI

Any transaction governed by Russian Law involving foreign securities without an ISIN and/or CFI will be invalidated because the subject matter of the transaction is not allowed for Russian circulation. An alternative to obtaining ISIN and CFI can be submission of the transaction to the foreign law; however such option also has its disadvantages including: the issues of applicability of the laws of some State to this transaction, requirements to the circulation of this State's securities, jurisdiction of the dispute and so on.

Any transaction governed by Russian Law involving foreign securities without an ISIN and/or CFI will be invalidated because the subject matter of the transaction is not allowed for Russian circulation.

An alternative to obtaining ISIN and CFI can be submission of the transaction to the foreign law; however such option also has its disadvantages including: the issues of applicability of the laws of some State to this transaction, requirements to the circulation of this State’s securities, jurisdiction of the dispute and so on.

ISIN

(The International Securities Identification Number is a security identification number. The International Securities Identification Number) is a twelve-digit code, which enables univocal identification of a security.

This alphanumeric code is unique for a security and can be assigned to various financial instruments, e.g. shares, bonds and bills.

ISIN

(The International Securities Identification Number is a security identification number. The International Securities Identification Number) is a twelve-digit code, which enables univocal identification of a security.
This alphanumeric code is unique for a security and can be assigned to various financial instruments, e.g. shares, bonds and bills.

CFI

(Classification of Financial Instruments). Classification of Financial Instruments Code) is a six-digit alphabetic code assigned for classification of a security.
This number is a code reflecting significant information about a certain issue of financial instruments (including its type, type and form of issue, circulation and redemption peculiarities and other material rights and characteristics). The CFI code is not unique, so it can be identical for different issues of securities.

CFI

(Classification of Financial Instruments). Classification of Financial Instruments Code) is a six-digit alphabetic code assigned for classification of a security.

This number is a code reflecting significant information about a certain issue of financial instruments (including its type, type and form of issue, circulation and redemption peculiarities and other material rights and characteristics). The CFI code is not unique, so it can be identical for different issues of securities.

The ISIN code makes it possible to identify the security, and the CFI code — to classify the security. The essence of these codes is different, and one of them cannot replace the other.

Special attention should be paid to the fact, that for the foreign securities the receipt of ISIN and CFI numbers is an obligatory condition for legal circulation in the territory of the Russian Federation.

39-FZ dated 22.04.1996

Clause 1, Article 51.1 of Federal Law dated 22.04.1996 N 39-FZ "On Securities Market" (hereinafter referred to as "FCSM Law")

Foreign financial instruments shall be allowed to circulate in the Russian Federation as securities of foreign issuers under the following conditions:

39-FZ dated 22.04.1996

Clause 1, Article 51.1 of Federal Law dated 22.04.1996 N 39-FZ "On Securities Market" (hereinafter referred to as "FCSM Law")

Foreign financial instruments shall be allowed to circulate in the Russian Federation as securities of foreign issuers under the following conditions:

1. Assignment of the international securities identification code (number) and the international classification code of financial instruments to foreign financial instruments;

2. Qualification of foreign financial instruments as securities in accordance with the procedure established by the Bank of Russia.

1. Assignment of the international securities identification code (number) and the international classification code of financial instruments to foreign financial instruments;

2. Qualification of foreign financial instruments as securities in accordance with the procedure established by the Bank of Russia.

In this case, if the security is qualified as CFI-code, mentioned in the Item 2 of "Provisions on qualification of foreign financial instruments as securities" (approved by the Order of the FFMS of Russia № 07-105/PZ-N of 23.10.2007), and it has ISIN-code, then the requirements of part 1 article 51.1 of the Law on the RTS should be considered satisfied in accordance with the Provisions discussed above.

It is important to remember that in 2013 the FFMS of Russia was merged with the Bank of Russia, therefore the said Regulation is still effective.

Thus, if a person has securities of a foreign issuer (for example, shares of a foreign company), the person must obtain ISIN and CFI numbers to circulate them legally in the Russian Federation.

In this case, if the security is qualified as CFI-code, mentioned in the Item 2 of "Provisions on qualification of foreign financial instruments as securities" (approved by the Order of the FFMS of Russia № 07-105/PZ-N of 23.10.2007), and it has ISIN-code, then the requirements of part 1 article 51.1 of the Law on the RTS should be considered satisfied in accordance with the Provisions discussed above.

It is important to remember that in 2013 the FFMS of Russia was merged with the Bank of Russia, therefore the said Regulation is still effective.

Thus, if a person has securities of a foreign issuer (for example, shares of a foreign company), the person must obtain ISIN and CFI numbers to circulate them legally in the Russian Federation.