The investment fund market in Russia
is very developed, providing similar investment funds
to those available in the European Union. Foreign investors who want to set up an investment fund in Russia
can choose from retail funds and hedge funds
, which are regulated by different rules. Our team of company formation specialists in Russia
can offer an in-depth presentation on the main advantages of each fund
and help investors to choose the most appropriate entity suitable to their needs.
Retail funds in Russia
Although the retail funds market is relatively young and less developed than in other countries, the regulatory framework is very solid.
The Russian legislation for this type of funds prescribes the following sub-categories:
• open-ended funds;
• closed-ended funds;
• exchange traded funds;
• interval funds.
The main regulation which controls the activities of such funds is the Federal Law on Investment Funds No. 156-FZ and all retail funds have to follow its requirements, which are closely verified by the Central Bank of Russia, one of the institutions that have created rules applicable under this law.
The Central Bank of Russia (CBR) is the regulatory body where investors should register the rules under which the new retail fund will carry its operations. The CBR regulates the activities of the fund, as well as of the persons who manage such funds.
It is important to know that retail funds
do not need an approval to carry out investment policies in Russia
, as the only requirements refer to the above mentioned registration procedure.
Hedge funds in Russia
A hedge fund is registered so that the investor can operate on the local and international stock markets. Such funds can own various assets, such as:
• cash – in the form of the national and foreign currencies;
• shares in foreign companies, as well as in local joint stock companies;
• shares in investment funds or in listed foreign investment funds;
• precious metals;
• property interest.