Thursday, November 14, 2024
Elvira Nabiullina Governor of the Central Bank of Russia | Official Website

State Duma approves new law reforming investor qualification system

The State Duma has approved a new law that reforms the qualification system for investors. The focus of the reform is to prioritize an investor's knowledge and experience over technical criteria like property qualifications, which will gradually become less important.

Under the new law, individuals can achieve qualified investor status by passing a special exam and obtaining a qualification certificate. This process does not require meeting any additional criteria. The Bank of Russia will determine the list of acceptable certificates.

The law also expands the list of universities authorized to qualify investors based on academic degrees or titles in related fields. An investor's income will now serve as an independent criterion, with requirements set by regulators considering labor market changes.

Additionally, individuals can become qualified investors if they meet several criteria, such as having an academic degree or title combined with professional experience, transaction experience, or meeting property or income requirements.

Qualified investors will no longer be restricted to specific financial instruments or lists thereof. Non-qualified investors who do not pass the test will only have access to investment units of closed-end unit investment funds, with requirements established by the Bank of Russia.

These amendments are set to take effect six months after the official publication of the law.

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