New Bank of Russia procedure for registering trust management rules covering unit investment funds, and their subsequent amendments

The Bank of Russia has released its new instruction governing financial market access of investment fund units which can be held by market players other than qualified investors. The document becomes effective in ten days of its publication.

With amendments to the law ‘On Investment Funds’ in force from 23 January 2020, trust management rules applicable to unit investment funds of which units can be held by market players other than qualified investors (and amendments thereto) are subject to Bank of Russia registration. Trust management rules (and amendments thereto) applicable to unit investment funds of which units can be exclusively held by qualified investors are subject to specialist depositories’ registration.

The Bank of Russia Instruction sets out the procedure for registering trust management rules (and amendments thereto) applicable to investment unit funds of which units can be held by market players other than qualified investors, reducing the number of documents to be submitted under registration procedures. The Instruction further sets forth the list of amendments to unit investment fund rules, in addition to statutory ones, for which the processing period is five working days of the Bank of Russia receipt date.

The new registration rules relieve the applicant of the need to resubmit re-approved documents for Bank of Russia registration in the case the initial submittal is short of some documents the regulator requires. In this way, the applicant will receive a request for missing documents to be submitted within the legal period. The Bank of Russia will only suspend its processing of documents until after it receives requested documents: it will not reset the processing time to zero as before.

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27.04.2020 00.00.00