Foreign investors who want to set up an investment fund in Russia can choose from retail funds and hedge funds, which are regulated by different rules. Our team of company formation specialists in Russia can offer an in-depth presentation on the main advantages of each fund and help investors to choose the most appropriate entity suitable to their needs.
Although the retail funds market is relatively young and less developed than in other countries, the regulatory framework is very solid.
The Russian legislation for this type of funds prescribes the following sub-categories:
• open-ended funds;
• closed-ended funds;
• exchange traded funds;
• interval funds.
The main regulation which controls the activities of such funds is the Federal Law on Investment Funds No. 156-FZ and all retail funds have to follow its requirements, which are closely verified by the Central Bank of Russia, one of the institutions that have created rules applicable under this law.
The Central Bank of Russia (CBR) is the regulatory body where investors should register the rules under which the new retail fund will carry its operations. The CBR regulates the activities of the fund, as well as of the persons who manage such funds.
A retail fund in Russia has to be managed by a trust manager, who must obtain an approval from the CBR; our team of company formation agents in Russia can offer detailed information on how to register as a trust manager.
Interested in a team of accountants in Russia? Our specialists can offer you the services you need to ensure that the company you own aligns with the requirements and legislation in force. You will benefit from such payroll services, bookkeeping, preparation and submission of annual financial statements, support for tax registration, tax advice, and compliance. You can also request audits and risk assessments and evaluations.
It is important to note that, in the case of retail funds, it does not require licensing or authorization in Russia. Here is other important information in this regard:
We recommend those interested in opening an investment fund in Russia to contact our specialists. They can also help foreigners to open a company in Russia, taking care of procedures and formalities.
Units of retail funds in Russia can be promoted by the respective fund manager or by a dedicated agent appointed by the respective manager. Agents must be licensed brokers, custodians, or security depositories to promote retail funds in Russia, according to the legislation of this country. All of them can deal with sales, exchanges, or use various tools for a good promotion of the retail fund in question. We specify that these funds can be marketed to qualified investors, as they can be:
We recommend contacting our specialists who can tell you more about investment funds in Russia. You have at your disposal all our support for starting a business in Russia in various fields of interest.
There are reporting requirements, according to the Investment Funds Law in Russia, that you should take into account when opening an investment fund:
A hedge fund is registered so that the investor can operate on the local and international stock markets. Such funds can own various assets, such as:
The units of hedge funds are proposed for competent investors only. Plus, the units of a hedge fund in Russia cannot be held by custodians or registrars of a retail fund, as specified by the legislation.
Below are some statistics about investment funds in Russia:
Investors who are interested to set up an investment fund in Russia can contact our team of company incorporation consultants in Russia for representation in this matter.