Basic standard of financial market operations for management companies approved by the Bank of Russia

The standard has been elaborated by self-regulatory organisations (SROs) of management companies in line with the regulator’s requirements. It sets principles determining customer investment profile and the list of required data. In addition, the document provides for the opportunity to revise investment profiles, including standard ones, specifies grounds for such revision, and sets out the procedure for approval of new profiles by customers.

The basic standard also requires that a trust management agreement contain provisions prescribing the actions of a management company in case a customer does not approve the new standard investment profile authorising an increase in admissible risk.

The inclusion of single rules governing the conduct of operations by management companies will make the rules more customer-friendly and transparent for financial consumers.

The document is binding for all professional securities market participants performing management functions, irrespective of their affiliation with SROs, and becomes effective six months after its official publication on the Bank of Russia website.