The Bank of Russia will give the market some of the functions of registration of rules on unit investment Funds and report on their termination

The Bank of Russia will cease to register rules of trust management of unit investment funds (SIFs) for qualified investors, and to approve the report on termination of such funds – these control functions will be transferred to the specialized depositaries.

The relevant amendments to the investment funds act will come into force on 23 January 2020. At the same time the amendments introduce responsibility of spectatorial (including licence revocation) for the improper performance of functions by agreement of the rules of trust management of and reporting on the termination of the funds.

A common approach to the performance spectatorial new features will be enshrined in standards that have already developed with the participation of the Bank of Russia self-regulatory organization “national financial Association” (SRO NFA). The standards that must be respected by all members of SROs aimed at protecting the rights and legitimate interests of shareholders and management companies, as well as to improve the quality of services of spectatorial.

Changes in the legislation will contribute to reducing the regulatory burden and the development of the market of collective investments.

27 Dec 2019