Bank of Russia approves new procedure for transferring property as payment for UIFs’ units
It will be possible to transfer any property as payment for the units of exchange-traded and closed-end unit investment funds (UIFs) as stipulated by their investment declaration, if this is allowed by UIF trust management rules (TMR). The relevant BoR Ordinance, registered by the Ministry of Justice, will take effect on 3 February 2020.
Changes will expand the range of investment action by UIF management companies and their clients. According to the previous order of the Federal Financial Markets Service, UIF units could only be paid with a number of specific types of property, i.e. artistic valuables, limited liability company shares, real estate, securities, as well as receivables on mortgage-backed obligations under credit agreements.
The new rules require that the specific type of property and the procedure for transferring it shall be set forth by UIFs in their TMR. At the same time, the management company shall transfer property to the ownership of a UIF (owners of investment units) by the point of time such property is included in the fund.