Reclassification of UIFs: Bank of Russia conditions
Unit investment funds (UIFs) for qualified investors will be entitled to change their status to UIFs for non-qualified investors if they meet certain conditions set out in the Bank of Russia draft Ordinance released for public consultation.
This opportunity will be available from 1 March 2026. It is designed primarily for the UIFs that targeted higher risk assets only at the initial stage.
To reclassify a UIF, its management company, in particular, will have to amend the trust management rules to make units accessible to non-qualified investors and will need to adapt the UIFs’ composition and structure for new unit holders. By the time when the documents, including the amended rules, are submitted to the Bank of Russia for registration, all the units should be paid for in full and the UIF should be subject to no restrictions or grounds for its termination.
The status change will allow qualified investors to withdraw from a project after the completion of its risky stage (for example, after the commissioning of a finished shopping mall) and will enable non-qualified investors to receive regular income from the lease of the finished facility.
The Bank of Russia welcomes your feedback and suggestions on the draft Ordinance through 7 March 2025.