The Russian retail fund market
is rather young and not as developed as it is in the European region, but the local authorities provide many options in terms of retail vehicles
and also a solid legal framework regulating this industry. Investors can choose from four types of investment vehicles
set up as retail funds
and our team of company formation specialists in Russia
can provide their expertise on this matter to those who want to register a retail fund
in this country.
Types of retail funds in Russia
A retail fund in Russia
is addressed to non-professional investors
, who do not have the statute of high net worth individuals. That type of fund
can be registered with lower initial investments
. The legislation in this sense prescribes a higher degree of regulation
, as the funds
are managed by investors who do not have a wide experience in the field. Investors who are interested in company formation in Russia
are advised to analyse the legislation for fund domiciliation.
• open-ended funds;
• exchange-traded funds;
• interval funds;
• closed-ended funds.
Open-ended and closed-ended structures in Russia are defined by the rights given to the investors. For example, an open-ended vehicle will provide more flexibility – the investors will be able to issue an unlimited amount of shares and they will be allowed to obtain the return on investment at any given time, rules which are not applicable in the case of a closed-ended structure.
Retail Fund Law in Russia
Businessmen who want to set up a company in Russia
should verify the legal requirements they must meet. In the case of an investment fund
registered as a retail vehicle
, the main legislation regulating the structure is the Federal Law on Investment Funds No. 156-FZ
Such vehicles are regulated by two main institutions:
• Russian government;
• the Central Bank of the Russian Federation.