Pool of instruments for non-qualified investors expands: regulator’s proposals
Now, after testing, non-qualified investors will be able to buy structured income bonds pegged to the value of securities of some large foreign exchange-traded funds (ETFs). This instrument is considered less risky because investors are always guaranteed the return of securities’ nominal value upon their redemption.
The Bank of Russia will establish requirements for selecting funds issuing such bonds.
The regulator also proposes that non-qualified investors be allowed to purchase without testing units of closed-end unit investment funds (closed-end UIFs) investing in liquid market assets. Such closed-end UIFs should not have blocked foreign securities.
Relevant draft ordinances have been posted to assess the regulatory effect.
The terms of access for non-qualified investors to stock market instruments are being clarified in accordance with the law on changing the investor qualification and testing system.