A new guarantee system for assets held in type 3 individual investment accounts (IIAs) is set to be introduced in Russia. This system will provide compensation for assets held in the accounts of professional participants in the event of their bankruptcy, following a law passed by the State Duma.
The compensation fund will be formed from voluntary contributions by professional participants who maintain IIAs and have joined the guarantee system. The existing Federal Public-State Foundation for the Protection of Investors’ and Shareholders’ Rights will operate this system under its new name, the Individual Investment Account Guarantee Fund. This entity will determine contribution amounts and handle compensation payments.
Investors affected by a participant’s bankruptcy can contact this fund if they have not received their assets within six months after bankruptcy proceedings begin. The maximum compensation amount is set at ₽1.4 million for all accounts opened by the bankrupt entity.
The law outlines specific aspects of participation in the guarantee system, procedures for establishing the compensation fund, investing its resources, and requirements for the structure and powers of the management bodies of the system operator.
