UIFs for non-qualified investors: new rules

The Bank of Russia proposes changes to the composition and structure of investment funds’ assets, seeking to make sure rights and legal interests of non-qualified investors in retail unit investment funds (UIFs) are better protected.

According to a draft Bank of Russia ordinance, the total investment of such UIFs in securities and derivatives intended only for qualified investors is limited to 40% of asset value. Also, such asset purchases must be provided for in the fund’s investment policy statement.

The draft also provides for a gradual reduction in the cap for UIF investment per legal entity, from 15 to 10% of asset value by 1 January 2022.

The net asset value of UIFs for non-qualified investors in the third quarter exceeded 770.1 billion rubles. Units in UIFs for non-qualified investors totalled 1.6 million, growing 2.3% in the third quarter.