The Bank of Russia has announced that unit investment funds (UIFs) for qualified investors will have the opportunity to change their status to UIFs for non-qualified investors. This is contingent upon meeting specific conditions outlined in a draft Ordinance released for public consultation.
This reclassification option will be available starting March 1, 2026. It primarily targets UIFs that initially focused on higher-risk assets. To facilitate this transition, management companies must amend trust management rules to allow access for non-qualified investors and adjust the UIFs’ composition and structure accordingly. By the time amended documents are submitted to the Bank of Russia for registration, all units must be fully paid, and there should be no restrictions or grounds for termination of the UIF.
This status change aims to provide an exit strategy for qualified investors after completing a project’s risky phase, such as commissioning a finished shopping mall. It also enables non-qualified investors to earn regular income from leasing completed facilities.
The Bank of Russia invites feedback and suggestions on the draft Ordinance until March 7, 2025.
