Rules for managing conflicts of interest for NPFs
Non-governmental pension funds (NPFs) will be obliged to identify and manage conflicts of interest. NPFs will be able to allow such conflicts only if they have informed their customers about them and the customers’ rights are not violated. The relevant Bank of Russia ordinance has been registered by the Russian Ministry of Justice.
The document stipulates the rules for identifying conflicts of interest and describes specific situations that may cause them – for example, when an NPF acquires securities of an affiliated company or performs a transaction with a related party. Funds will be obliged to maintain records of the information about conflicts of interest.
The requirements for NPFs are similar to the approaches to regulating conflicts of interest involving professional participants and management companies and are aimed at enhancing the protection of the rights and lawful interests of their customers.
The ordinance comes into force on 21 February 2025.