Source: Central Bank of the Russian Federation in English
On 16 July 2019, the Russian State Duma passed in the second reading amendments to Federal Law ‘On Investment Funds’ aiming at making unit investment funds (UIFs) more attractive for investors.
The draft law provides for making current income payments from open-end and interval UIFs, property contribution to pay for units, and allotment of assets in kind upon redemption of units for qualified investors. To safeguard unit holders’ interests, the draft law removes the restriction to dispose of UIF assets in case of UIF termination.
The draft law also further improves UIF regulation for qualified investors. In particular, it lifts the ban to disseminate information on UIFs among qualified investors. It may now be published on websites of UIF management companies and on the website of the Bank of Russia. Model trust management rules will be replaced with a set of requirements for such rules.
According to the draft law, rules of the trust management of UIFs for qualified investors will need to be approved by the specialised depository instead of their mandatory registration by the Bank of Russia and reports on the termination of such UIFs will need to be approved by the spesialised depository instead of the Bank of Russia.
16 July 2019