Federal Law of May 1, 2019 N 75-ФЗ “On Amendments to the Federal Law“ On Investment Funds ”and the Federal Law“ On the Russian Direct Investment Fund ”” [1] is a normative act that defines the main directions for protecting the rights of shareholders of investment funds , first of all - in the sphere of conflict of interests [2] . The law comes into force in full one year after publication.
On Amending the Federal Law "On Investment Funds" and the Federal Law "On the Russian Direct Investment Fund" | |
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View | the federal law |
room | 75-FZ |
Adoption | The State Duma on April 16, 2019 |
OK | Federation Council April 22, 2019 |
Signing | By the President on May 1, 2019 |
First post | Rossiyskaya Gazeta No. 98 (7856) dated May 8, 2019 |
New in Law 75-FZ
As indicated in a press release from the Bank of Russia [3] , in accordance with the norms established by the new law, management companies and specialized depositories of mutual investment funds will be required to manage the conflict of interest arising in the process of providing services. Under the actions of these structures in a conflict of interest without notifying the client about this, the Bank of Russia receives, according to the law, the authority to establish requirements for the identification and management of such conflicts. Also, the regulator will be able to issue orders for damages [4] . The authority of the Central Bank will also include the possibility of a ban on transactions or even cancellation of licenses of management companies and specialized depositories in case of repeated violations of the requirements for managing conflicts of interest during the year [5] .
With the introduction of the new law, investment opportunities for mutual funds are expanding for qualified investors . For this group of investors, bans on transactions with elements of a conflict of interest are lifted: however, only under the condition that the possibility of such transactions is directly specified in the rules of trust [6] .
Perspectives
According to the Director of the Department for Collective Investments and Trust Management of the Central Bank, Kirill Pronin, the innovations proposed in the law “will help increase confidence in the collective investment market and protect the rights of shareholders”. It should be noted that in 2018, the value of net assets (NAV) of all Russian mutual funds increased by almost 14%, exceeding 3.3 trillion rubles [7] .
Notes
- ↑ A law has been signed aimed at attracting shareholders' funds to the Russian Direct Investment Fund . President of Russia. Circulation date May 15, 2019.
- ↑ Federal Law of May 1, 2019 N 75-ФЗ "On Amendments to the Federal Law" On Investment Funds "and the Federal Law" On the Russian Direct Investment Fund "" . Russian newspaper. Circulation date May 15, 2019.
- ↑ The protection of the rights of unit investment trusts increases | Bank of Russia . www.cbr.ru. Circulation date May 15, 2019.
- ↑ A law was signed to protect the rights of unit investment trusts . Banks.ru. Circulation date May 15, 2019.
- ↑ A law was signed on protecting the rights of unit investment trusts . bankir.ru. Circulation date May 15, 2019.
- ↑ The President signed the law on the protection of the rights of unit investment trusts . Zaim.com (May 6, 2019). Circulation date May 15, 2019.
- ↑ In 2018, the flow of funds into mutual funds continued | Bank of Russia . www.cbr.ru. Circulation date May 24, 2019.