UIFs for private investors: new rules
The Bank of Russia has established requirements for the rules of trust management of open-end, closed-end, exchange-traded and interval unit investment funds (UIFs) for non-qualified investors.
In particular, the new rules will help investors better understand which fund to choose: if an asset is mentioned in the name of a UIF, then at least 80% of the fund's property should be invested in this asset.
Furthermore, unit holders of all UIFs will be able to receive dividends on the units and pay for the units not only with money but also with other assets, e.g., with securities they own.
The new requirements will replace the standard trust management rules. Such a transition will allow management companies to draw up rules more flexibly based on the specifics of each particular UIF.
Market participants are given two years to bring the previously adopted rules into compliance with the new requirements. This is done to avoid excessive regulatory burden on market participants.