Developing an Audit Ecosystem as a Factor in Enhancing the Competitive Advantages of the Audit Profession

Relevance. In the context of the transformation of Russia's economic and financial landscape, as well as the implementation of Strategy 2030, the system of non-state pension provision is facing challenges related to the dominance of federal loan bonds in the portfolios of non-state pension funds. This limits asset diversification and reduces profitability, impeding the achievement of retirement goals, which underscores the relevance of the study.The purpose of the work is to analyze existing problems in the management of NPFs assets and develop recommendations for the development of the financial market and the creation of new tools that help improve the effectiveness of the NGO system in Russia.Objectives: to analyze the provisions of the 2030 Strategy; to identify current problems and contradictions in the development of the financial market; to substantiate tools for increasing the effectiveness of NGOs; to determine the conditions for the long-term development of the Russian financial market, taking into account modern challenges.Methodology. To achieve this goal, we used methods of theoretical analysis, a systematic approach, a review of strategic documents for the development of Russia, an analysis of open data from the Moscow Stock Exchange, the Bank of Russia, and NPF reporting, as well as a comparative analysis of international pension fund management practices.Results. The study revealed key problems in NPFs' investment strategies, including insufficient asset diversification and dependence on low-yield instruments that do not ensure overcoming ruble inflation in the long term. Measures have been proposed to expand the investment limits of NPFs, including increasing the share of shares and structured products in fund portfolios. The possibilities of creating new financial instruments, such as programs with guaranteed capital protection, structured bonds and mutual funds, as well as ways to improve financial accessibility for retail investors are considered.Conclusions. Achieving sustainable growth in the profitability of pension savings requires an integrated approach to developing the infrastructure of the Russian financial market, introducing new tools and increasing public involvement in investment processes.

Financial Market Integration and Income Inequality

The paper examines the transformation of the financial market in a modern environment and aims to identify promising areas for its development, taking into account trends in the global financial system and economic challenges. Methods such as scientific abstraction, generalization, analysis, synthesis, and logic are employed in the study. Key trends in the global financial system are identified, including the increasing importance of digital technologies and the shift towards more sustainable and inclusive finance. The Russian financial market is viewed as a unified interconnected space, where synergies can be achieved through the use of public market potential for financial instruments and products, as well as the collaboration of credit institutions, state agencies, and development institutions. The need for increased connectivity between different segments of the market is emphasized, as this can lead to more efficient allocation of resources and better outcomes for all participants. The paper identifies the priority directions for the financial development of financial markets in the current context. It concludes that it is essential to develop the domestic syndicated lending market in order to attract additional investment into the Russian economy. Proposals have been formulated to increase the attractiveness of the stock market for both issuers and investors. The importance of expanding the use of securitization mechanisms in the Russian securities market has also been emphasized. The paper discusses the directions for developing project financing and public-private partnerships. It emphasizes the need for market participants and government agencies to work together to promote the development of the financial market and its various segments. The importance of attracting development institutions, direct government support, and refinancing instruments of the Central Bank of Russia to form sources of long-term investment in the current environment is noted. The novelty of this research lies in developing a methodology for analyzing the contemporary financial market, considering the transformations of the global financial system. The significance of the study lies in providing recommendations for the development of the Russian financial market. Future research could focus on identifying promising areas of securitization market development, considering digitalization, and assessing its potential for creating longterm financing sources in the Russian economy.

Introduction. In the context of the financial sector’s rapid digitalization, the study of new asset classes, in particular digital financial assets (DFA), which demonstrate significant potential for transforming traditional financial markets, is becoming especially relevant. The research methodology is based on a comprehensive approach to the analysis of the technological transformation of modern financial market and the development of digital financial assets, including an analysis of the regulatory framework, statistical data and practices of market participants, with special attention paid to a comparative analysis of various similar markets and their comparison with DFA. Theoretical analysis. The article presents a short overview of relevant scientific literature on the digital financial assets market development. The conceptual framework is disclosed, the concepts of digital financial assets and information system operators are defined. Empirical analysis. A comprehensive analysis of the digital financial assets market development in Russia for the period of 2022–2024 is carried out. The study demonstrates significant market growth: the volume of issues reached 500 billion rubles in 2024 with 864 placements, which significantly exceeds the figures for previous years. The institutional structure of the market, including 14 information system operators, and the technological base based on various blockchain solutions are analyzed. The specifics of the Russian DFA regulation model, the product structure of the financial market, where digital analogues of bonds dominate (98% of issues), as well as the features of asset tokenization are considered. Results. Key problems of market development have been identified, including the underdevelopment of the secondary market and fragmentation of liquidity. Based on the analysis, promising areas for the development of the digital financial assets market in Russia have been identified, including asset securitization and development of the digital certificates market. It is predicted that the volume of issues will reach 1 trillion rubles by 2025, subject to successful implementation of regulatory changes and development of the market infrastructure.

В статье рассматриваются особенности становления и развития рынка цифровых активов в России за последние три года. Охарактеризованы его основные участники, требования, предъявляемые к ним со стороны Банка России. Отмечены преимущества цифровых финансовых активов для эмитентов и инвесторов. Охарактеризованы риски, связанные с операциями цифровых финансовых активов. Рассмотрен вопрос о налогообложении операций с цифровыми финансовыми активами. Особое внимание уделено анализу динамики развития рынка цифровых финансов активов и определению основных тенденций его развития: использование цифровых финансовых активов в международных расчетах; повышение его ликвидности и прозрачности; удлинение сроков выпуска цифровых финансовых активов. Реализация на практике данных направлений обеспечит дальнейшее развитие рынка цифровых финансовых активов в Российской Федерации, укрепит доверие инвесторов и обеспечит формирование нового сегмента финансового рынка. The article examines features of establishment and recent development of the digital asset market in Russia over the past three years. Its main participants and the requirements imposed on them by the Bank of Russia are characterized. The advantages of digital financial assets for issuers and investors are noted. The risks associated with digital financial asset transactions are characterized. The issue of taxation of transactions with digital financial assets is considered. Particular attention is paid to the analysis of the dynamics of the development of the digital financial asset market and the definition of the main trends in its development: the use of digital financial assets in international settlements; increasing its liquidity and transparency; extending the terms of issue of digital financial assets. The practical implementation of these areas will ensure the further development of the digital financial asset market in the Russian Federation, strengthen investor confidence and ensure the formation of a new segment of the financial market.

У статті досліджено особливості функціонування фінансового ринку України та основні його проблеми, які посилилися в умовах війни. Проведено аналіз динаміки зміни кількості учасників фінансового ринку та найбільш активних його гравців (банки, страхові компанії та фондові біржі). Разом із тим, особливу увагу в статті акцентовано на тому, що на сучасному етапі розвитку фінансовий ринок є динамічним та непередбачуваним, що пояснюється негативним впливом на нього в першу чергу військових дій на теренах нашої держави. Це супроводжується безліччю викликів перед українською владою, громадянським суспільством та необхідністю прийняття нестандартних, новаторських рішень. І питання міжнародної допомоги та її обсягів, а також здатність ефективно та раціонально її використовувати, стає ключовим у контексті відновлення.

The relevance of the analysis of the draft guidelines for the development of the Russian financial market in 2019–2021 set forth in the draft program document issued by the Bank of Russia comes from the fact that in the current situation of the macroeconomic and financial instability Russia’s entry into the top five leading world economies is impossible unless business entities have access to internal sources of financing, primarily to debt and equity financing instruments, as well as to risk insurance tools.The subject of the research is the plans of the Bank of Russia for the development of the Russian financial market in 2019–2021 set out in the draft program document of the Bank of Russia to be approved in the summer of 2019. The purpose of the paper was to assess the above guidelines in terms of whether they can achieve the goal of boosting the growth and efficiency of the economy. Proposals are made to harmonize issues related to the development of the financial market with monetary and fiscal policy issues.The paper concludes that it is necessary to seek a balance between financial stability and stimulation of business activities of banks in the cooperation between the Bank of Russia and business corporations. It is noted that the program of the financial market development does not include issues related to the development of certain segments of the financial market (foreign exchange and precious metals markets).

The article highlights the concept of the market of non-banking financial services in accordance with the requirements of Ukrainian legislation and identifies the main intermediaries operating in this market. The study contains analytical data on the number of non-bank financial institutions operating in Ukraine, as well as the volume of assets of such financial institutions. The authors also present an analysis of the main trends in the development of the non-banking financial services market. For comparison, the structure of the financial market is presented in the form of the ratio of the number of banking and non-banking institutions. The article provides an analytical overview of the number of private pension funds, financial companies, pawnshops, credit unions and insurance companies operating in Ukraine over the past three years. The structure and volume of financial services provided by insurance companies have been studied separately. The authors state that despite the existence of non-bank financial institutions, the banking sector still prevails. Moreover, financial companies predominate in terms of assets among representatives of non-bank financial institutions. Despite the coronary crisis during 2016-2020, the number of financial companies and other non-banking institutions, including pawnshops and insurance companies, grew steadily. Such trends are assessed positively, as it indicates the development of the financial market and its stability in adverse conditions. In Ukraine, the market of non-banking financial services is underdeveloped compared to other countries, but despite the mentality and transition in the formation of the non-banking financial sector, it has good prospects for development. However, despite the positive changes, ways to improve the performance of non-bank financial institutions in crisis conditions have been proposed.

Complete financial markets allow countries to share their consumption risks internationally, thereby creating welfare gains through lower volatility of aggregate consumption. Using a panel of 116 countries between 1970 and 2019, I show that a higher share of low‐income households reduces consumption risk sharing, especially so in less‐developed countries. Moreover, I find that a broad range of financial market reforms and financial integration have a positive impact on international consumption risk sharing in poorer developing countries, while in emerging market countries, financial market development, financial reforms, and capital account openness has an impact. In advanced economies, financial (stock and bond) market development as well as financial integration improves international risk sharing. A lack of financial reforms, a lower degree of financial integration and a high share of low‐income households thus contribute to the degree of risk sharing being lower in developing countries than in advanced economies.

The relevance of the article's topic is determined by the fact that the financial services market plays an important role in the modern economic system, ensuring the redistribution of financial resources, supporting investment activity, and maintaining financial stability. It is shown that the European model of the financial services market is characterized by a high level of institutional maturity and the systematic implementation of innovative mechanisms. The Ukrainian market is in the phase of active transformation, where innovations serve as tools for adapting to wartime and economic challenges and, at the same time, form the foundation for future integration into the EU financial space. It is proven that innovative tools of Ukraine's financial market are an important factor in adapting the economy to conditions of uncertainty and wartime. They contribute to increased financial inclusion, effective resource redistribution, the resilience of the financial system, and bring the national financial market closer to EU standards. It is argued that under the economic instability and wartime conditions in Ukraine, the implementation of EU Directives will promote the digitalization of the financial market, enhance the resilience and accessibility of financial services. Innovative tools in the financial services market are becoming a key driver for Ukraine's integration into the European financial space. A comparative analysis of key directives showed that the active integration of Ukraine's financial services market into the EU has structural and institutional limitations, particularly in the development of the insurance and investment sectors. Ukraine's priority should be the growth of insurance innovations, the expansion of crowdfunding, and strengthening the cyber-resilience of financial services. Prospective directions for the development of Ukraine's financial services market are substantiated, focusing on strengthening the role of non-bank financial institutions, forming a long-term capital market, implementing European regulatory standards, developing a digital financial infrastructure, introducing innovative financial mechanisms, and improving the financial literacy of the population. Priority areas identified include the development of FinTech (financial technologies), BankTech (banking technologies), InsurTech (insurance technologies), and RegTech (regulation and compliance technologies). The application areas for these technologies are defined as banking supervision, digital payment systems, risk insurance of a military nature, investment diversification, the use of hybrid financial instruments, and interaction with international financial organizations. It is proven that the proposed measures, as they are implemented, will increase the competitiveness of the financial market, stimulate integration into the European financial space, and ensure the sustainable development of Ukraine's economy.

This article is devoted to the problem of the urgency and the possibility of using the EU experience in the development of the common financial market of the EAEU. The integration issue is considered in political, legal, and institutional aspects. The article has a general theoretical and legal character, therefore, the emphasis is placed on legal and doctrinal issues, special attention is paid to the analysis of the Treaty on the Eurasian Economic Union and its protocols, as well as identifying obstacles to the financial integration of the Union and ways to eliminate them. The article presents as an example for the EAEU markets mega-regulators in the EU financial markets and their impact on the eurozone economy during the COVID-19 period. The article proposes further steps required to consolidate financial integration and improve the future stability of the EAEU financial market.

The article presents a modern view of understanding of "financial market" concept, as the development of financial technologies gradually influences the change of paradigm of its functioning, new financial institutions, institutions of market infrastructure, financial instruments are emerging, as well as the development of forms of alternative financing. On the base of the systematization, it is determined that the term "financial market" in the current scientific literature is considered from three positions, first as a mechanism of distribution of financial resources, secondly, as a system of economic relations, and thirdly as a set of markets and institutions. As a result of the research on the contrary to the popular opinion that the financial services market and the financial market are two separate markets, it has been substantiated that the financial services market is a part of the financial market, because financial instruments are formed through the provision of financial services. The financial market and the market of financial services have common subjects - financial intermediaries (banks, insurance companies, non-government pension funds, investment funds, etc.), but at the same time the objects of these two markets are different. Financial instruments are objects for financial markets, and services – for the market of financial services. Through the process of financial services providing, financial intermediaries ensure the fulfilment of the basic function of the financial market, which is the redistribution of financial resources in the economy, thereby creating financial assets, liabilities, etc., which is the basis for the formation of financial instruments. Taking into account of the impact of fintech on the development of the financial market, author's definition was presented in this work as a system of financial institutions (market subjects), which create the conditions for transactions with financial instruments of economic agents (market objects) using appropriate infrastructure and financial technologies. Transfer of flows of financial resources in the economy at national, subnational and global levels, adequate assess of financial risks and ability to absorb exogenous and endogenous shocks were determined as a purpose of the functioning of the financial market. Keywords: fintech, financial instruments, financial institutions, financial services market, financial system, financial services..

Significant changes taking place in the economic life of the state and society are associated with the active and widespread development and spread of the digital economy. The Internet, personal computers, smartphones, mobile communications, artificial intelligence, robotics and much more have become an integral part of the life of our society. The digital economy development has a significant impact both on the economy as a whole and on its individual segments: the engineering and technology development is accelerating, the boundaries between various fields of activity are blurring and significant changes in the activities of enterprises and workers are taking place. Thanks to digitalization, it became possible to identify various risks which are associated with activities and which can have a negative impact on the development of the entire financial market. One of the markets actively involved in the development of digital technologies is the financial market, which is a combination of the credit, investment, insurance, and stock sectors. In fact, the financial market is a significant indicator of the state of the entire Russian economy. In connection with the above, it is not accidental in the strategy of the Bank of Russia that it strives to develop platforms for the “digitalization” of the financial market. The development of platforms is necessary to create a competitive and trusting environment in the financial market, to maintain its stable financial condition, as well as to ensure the capital and financial services availability. In addition, the development of such platforms provides significant economic and financial benefits for variSignificant changes taking place in the economic life of the state and society are associated with the active and widespread development and spread of the digital economy. The Internet, personal computers, smartphones, mobile communications, artificial intelligence, robotics and much more have become an integral part of the life of our society. The digital economy development has a significant impact both on the economy as a whole and on its individual segments: the engineering and technology development is accelerating, the boundaries between various fields of activity are blurring and significant changes in the activities of enterprises and workers are taking place. Thanks to digitalization, it became possible to identify various risks which are associated with activities and which can have a negative impact on the development of the entire financial market. One of the markets actively involved in the development of digital technologies is the financial market, which is a combination of the credit, investment, insurance, and stock sectors. In fact, the financial market is a significant indicator of the state of the entire Russian economy. In connection with the above, it is not accidental in the strategy of the Bank of Russia that it strives to develop platforms for the “digitalization” of the financial market. The development of platforms is necessary to create a competitive and trusting environment in the financial market, to maintain its stable financial condition, as well as to ensure the capital and financial services availability. In addition, the development of such platforms provides significant economic and financial benefits for various participants in the financial market, which will positively affect the entire economy development.

Financial openness and financial market development

In the process of continuous reform and development of financial markets, financial theories are constantly updated and the research and development of financial mathematics becomes more and more important. This paper focuses on the impact of financial mathematics on modern financial markets. Starting from the emergence and development prospect of modern financial mathematics, the impact of financial mathematics on the development of modern financial market is comprehensively elaborated by analyzing financial mathematical theories, such as harness theory, stochastic optimal control theory and optimal stopping theory, and analyzing the application of mathematical models in financial theory. Financial mathematics not only effectively drives the innovation and iteration of financial instruments, but also has a direct role in the development of financial markets. The article focuses on the application of mathematical knowledge in several financial problems, aiming to provide reference and reference for advancing the application of mathematical knowledge in the field of finance.