Equity capital of asset management companies to be tied to principals' assets

Requirements will be tighter for assets eligible for including in the calculation of equity capital by asset management companies (AMC). Their minimum amount will be tied for the first time to the value of property under the company's trust management. This will enhance reliability of companies managing funds owned by investment funds, unit investment funds and non-governmental pension funds.  This is the subject matter of the draft Bank of Russia Ordinance published on the regulator's website for public discussion.

The draft stipulates that the minimum equity capital of the AMC be at least 10 million rubles. Companies are required to raise it to 15 million ruble within six months. A year after the document becomes effective, the calculation of the AMC equity capital ratio will depend on the value of assets under management.   If the value is below 3 billion rubles, the company's equity capital shall amount to 20 million rubles. If the value of property under management exceeds 3 billion rubles, the excess amount shall be multiplied by 0.02% and increased by 20 million rubles. At the same time, the minimum equity capital of the AMC shall not ultimately exceed 80 million rubles. Such a differentiated approach is also applied in the international practice, for example, in the European Union.

The calculation of the AMC equity capital will be able to comprise funds on settlement accounts and deposits with banks, as well as bonds with long-term credit rating at or above the level established by the Bank of Russia Board of Directors. Shares shall be included in at least one first (top) tier quotation list of a Russian stock exchange. Thereby, the share of the best quality and most liquid assets in the equity capital will be increased.