From January 1, 2025, non-governmental pension funds (NPFs) will be required to identify and manage conflicts of interest. However, these funds will only be able to allow such conflicts if they do not violate clients' rights and clients have been informed about the conflict. These provisions are outlined in a Bank of Russia draft ordinance published for public consultation.
The document specifies rules for identifying conflicts of interest and describes specific situations that may cause them—for example, when an NPF acquires securities of an affiliated company or performs a transaction with a related party. Funds will also be required to maintain records of information about conflicts of interest.
The requirements for NPFs are similar to approaches regulating conflicts of interest involving professional participants and management companies. They aim to enhance the protection of the rights and lawful interests of their clients.
Feedback on the draft ordinance can be sent to the Bank of Russia through June 28, 2024.
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