Key information on UIFs to be disclosed in single document
The Bank of Russia has developed new requirements for the disclosure of information by management companies (MC) so as to provide comprehensive information to investors for them to make reasonable decisions both when acquiring units of unit investment funds (UIF) and assessing MCs’ performance. The relevant draft ordinance is available on the Bank of Russia’s website.
Specifically, the main data on UIFs, including on returns, investment risks, fees, and major shares in assets, will be subject to monthly disclosure in a standard and easy-to-understand form of a single Key Information Document. In addition, MCs will be obliged to disclose information on any events that may have a material impact on values of investment units.
All information on MCs and UIFs will be disclosed on MCs’ official websites. Thus, all investors and parties concerned will be able to easily access necessary information in a single source. Moreover, the new ordinance will reduce MCs’ regulatory burden since it will invalidate the obsolete rule requiring disclosure not only on MCs’ websites, but also in printed sources. Similar requirements will be established for the disclosure of information on joint-stock investment funds.
The ordinance is expected to become effective on 1 April 2021. The Bank of Russia welcomes feedback on the draft ordinance through 15 May 2020.