Bank of Russia to cancel standard trust management strategies
Trustees should apply an individual approach to their clients when forming investment portfolios. Such approaches should take into account clients’ financial standing, education, and experience in the securities market. The Bank of Russia has released the relateddraft ordinance for public consultation.
The document cancels the so-called standard strategies when trustees formed a single investment profile for all clients and managed it under common rules. This will expand the range of trust management strategies that can be offered to clients to best meet their investment expectations and risk appetite.
Those willing to purchase collective investment instruments may use unit investment funds. Starting from this year, it is possible to purchase units in individual investment accounts opened with management companies.
Moreover, the Bank of Russia is improving the procedure for preparing the investment profile of a client concluding a trust management agreement. This will help identify the client’s purposes and assess the acceptable risk more precisely.
The new developments will enhance trust management and the protection of investors’ rights.
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