Bank of Russia recommends advising customers on specifics of ‘green’ securities and finance products
The Bank of Russia has recommended that banks, management companies, non-governmental pension funds, and insurers inform customers of the specifics, capabilities and risks of sustainable development products when selling them. This will increase investors’ awareness and prevent the distribution of conventional financial instruments as ‘green’ ones. The relevant Information Letter is available on the Bank of Russia website.
The recommendations cover all products, including shares, bonds, unit investment funds, exchange-traded funds, financial derivatives, deposits, loans, and non-governmental pension provision and insurance agreements. It is important to detail the eligibility criteria for assessing whether investment in such products will be used to finance sustainable development projects. Companies may publish such information on their websites.