Starting March 1, 2026, unit investment funds (UIFs) in Russia will be permitted to change their classification from ‘qualified’ to ‘non-qualified’, according to a new ordinance issued by the Bank of Russia.
This change is expected to affect funds that originally focused on higher-risk investments, such as the construction of shopping centers or warehouse facilities. Once these projects are completed, the funds may seek a more conservative investment approach.
To reclassify, management companies must update trust management rules and ensure the fund’s structure aligns with requirements for UIFs intended for non-qualified investors. All units must be fully paid and there should be no restrictions or grounds for termination when submitting documents to the Bank of Russia for registration.
The Bank of Russia stated: "This opportunity will primarily appeal to the funds whose investment strategy initially focused on higher-risk projects, such as construction of shopping centres or warehouse facilities. However, once these buildings are commissioned, such funds may seek to adopt a more conservative strategy."
According to the regulator: "To reclassify a fund, a management company will have to, among other things, bring the trust management rules, as well as the composition and structure of the fund in line with the requirements applicable to UIFs for non-qualified investors."
Further details were provided: "By the time when the documents, including the adjusted rules, are submitted to the Bank of Russia for registration, all the units must be paid for in full and there must be no restrictions on the relevant UIF or grounds for its termination."
On potential impacts for investors and fund operations: "The status change will allow qualified investors to withdraw from a project after the completion of its risky stage, while also making it possible to attract new unit holders who can then receive returns on their investments."