Limits on investing UIFs’ assets: Bank of Russia’s draft ordinance
The share of assets of unit investment funds (UIFs) for non-qualified investors allowed for investment in non-friendly states’ securities should not exceed 40%. The Bank of Russia has published the relevant draft ordinance to evaluate its regulatory impact. This measure will help mitigate risks associated with possible blocking by foreign institutions.
In addition, the draft ordinance expands the list of assets available for investment. It will allow the investment of UIFs’ assets in Russian bonds that are aimed at financing technological sovereignty projects and/or the structural adaptation of the Russian economy and not listed. However, the share of such securities in UIFs’ assets should not be higher than 5%.
The draft ordinance also cancels the requirement for the minimum investment in closed-end UIFs classified as real estate funds (the current threshold is 100,000 rubles).
The Bank of Russia welcomes any suggestions and comments through 17 April 2023.