Bank of Russia discusses NPF market outlook
The main topics of the dialogue between the Bank of Russia and representatives of non-governmental pension funds (NPFs) and self-regulatory organisations of NPFs included the further development of the NPF market in the context of falling voluntary contributions, the effects of the pandemic, and the creation of ecosystem approaches and comprehensive service provision.
The Bank of Russia believes that a well-balanced pension system with a voluntary component is an essential part of the Russian financial market. Such a pension system calls for enhanced confidence in the NPF institute. The rehabilitation of the NPF market has been completed; however, funds still need to continue to foster the record of flawless work.
NPF representatives noted that over several recent years the quality of market players and their portfolios had improved considerably, which prepared the funds to address strategic objectives.
Based on the outcomes of the meeting, the parties agreed to focus more on the prospects of flexible pension products, the potential combination of NPF and other activity lines, and also additional incentives for the development of this industry.