Non-governmental pension funds (NPFs) in Russia will soon be required to identify and manage conflicts of interest. The Bank of Russia has issued an ordinance, now registered by the Russian Ministry of Justice, mandating that NPFs can only allow such conflicts if customers are informed and their rights remain protected.
The document outlines rules for identifying conflicts of interest and details specific scenarios that might lead to them. Examples include acquiring securities from an affiliated company or conducting transactions with related parties. Funds must also maintain records concerning these conflicts.
These requirements align with existing regulations on professional participants and management companies, aiming to bolster the protection of customer rights and lawful interests.
The ordinance will take effect on February 21, 2025.
