Bank of Russia will transfer to market some functions related to registration of UIF rules and UIF termination reports
The Bank of Russia will cease registering the rules for trust management of unit investment funds (UIF) for qualified investors and approving reports on the termination of UIFs. The regulator will transfer these functions to special depositories.
The relevant amendments to the law on investment funds will become effective on 23 January 2020. These amendments also stipulate that special depositories shall be liable (up to the cancellation of their licences) for improper performance of their functions related to the coordination of trust management rules and UIF termination reports.
Uniform approaches to how special depositories should perform their new functions will be envisaged in the standards that have already been drawn up by the self-regulatory organisation National Finance Association (SRO NFA) with the participation of the Bank of Russia. The standards, which will be mandatory for all members of the SRO, are aimed at protecting unit holders’ and management companies’ rights and legitimate interests and at improving the quality of special depositories’ services.
The amendments to the law will help reduce the regulatory burden and promote the development of the collective investment market.