NPF corporatisation completed

Source: Central Bank of the Russian Federation in English

The Bank of Russia completed the corporatisation of non-governmental pension funds (NPFs). As of 24 December, 52 NPFs in the form of joint-stock companies are operating in the financial market. 35 of them participate in the guarantee system for insured persons’ rights and are engaged in mandatory pension insurance.
The law established a five-year period (until 1 January 2019) for non-commercial NPFs to change their legal status and to bring their activity in line with the regulatory requirements aimed at improving capital transparency and corporate governance.
As of 1 January 2014, 120 NPFs operated as non-commercial organisations. The first stage of corporatisation ended on 1 January 2016 and was mandatory for NPFs to be registered in the guarantee system for insured persons’ rights. This stage provided for the reorganisation of NPFs that were engaged in mandatory pension insurance. As of 1 January 2016, there were 36 non-commercial NPFs and 66 institutions in the form of a joint-stock company.
During the second stage (from January 2016 to December 2018), NPFs that were only engaged in non-governmental pension provision were subject to corporatisation.
The number of funds declined due to consolidation, voluntary licence surrender and forced removal of unscrupulous players from the market.
24 December 2018