How to notify customers of long-term savings agreements: Bank of Russia’s requirements
When signing a long-term savings agreement, banks acting as agents of non‑governmental pension funds will be obliged to provide a key information document (KID) to customers to notify them of the terms and risks of the agreement. These requirements are stipulated in the relevant draft ordinance of the Bank of Russia.
KIDs must inform customers about the option of transferring their pension savings to the long-term savings programme (including as a lump-sum payment) and the government support for the contributions under the programme. KIDs must also notify customers of the procedure and conditions for paying the surrender value under the agreement (e.g., if a person has to withdraw the entire amount or a part of it due to certain life circumstances, but is not going to cancel the agreement). Furthermore, banks must inform customers that a long-term savings agreement is not a bank deposit.
Before providing any other documents under the agreement, a bank must make sure that a customer has read and signed the KID.
The ordinance is due to become effective on 1 April 2025.
KIDs are already applied in relation to other financial products. The long-term savings programme was launched in January 2024.