Clients of management companies to obtain qualified investor status under simplified procedure
The Bank of Russia has approved amendments to the basic standard for protecting the rights of management companies’ clients. The new version provides extra opportunities and establishes a procedure for testing whether retail clients of management companies know particular financial instruments designed for qualified investors, namely units of interval and closed-end unit investment funds, structured and perpetual bonds.
If an applicant successfully passes the test, he/she will have to meet lower requirements for his/her assets or income to receive the qualified investor status since the applicant has confirmed that he/she has sufficient knowledge to manage sophisticated financial instruments. For instance, the applicant should have assets worth ₽12 million (instead of ₽24 million) or annual income of at least ₽6 million in the past two years (instead of ₽12 million). It is important to note that, in this case, the obtained status has limitations. It entitles the investor to buy only those complex instruments, for which the investor has confirmed his/her knowledge.
The standard also obliges management companies to provide people with all necessary information regarding the key provisions of the standard and possible risks arising from investment before concluding an agreement.
The document will come into force on 3 December 2026.