On amending Bank of Russia Regulation No. 451-P of 25 December 2014

On 24 June 2015, the Bank of Russia issued Ordinance No. 3692-U ‘On Amending Bank of Russia Regulation No. 451-P, Dated 25 December 2014, ‘On Additional Restrictions on Investing Pension Savings Placed with a Non-Governmental Pension Fund Implementing Obligatory Pension Insurance, Additional Requirements to Credit Institutions with Which Servicemen Pension and Housing Savings are Placed, and Additional Requirements Management Companies Must Comply with During the Term of Pension Savings Trust Management Agreement’ (hereinafter, the Ordinance).

The Ordinance establishes conditions for investing into bonds of the issuer acting as a concession participant pursuant to concession agreement with the placement and/or public circulation initiation date following the date Bank of Russia Regulation No. 451-P of 25 December 2014 (hereinafter, the Regulation) becomes effective. The document also envisages related thereto changes in the requirements to the structure of the investment portfolio of the non-governmental pension fund (NGPF) implementing obligatory pension insurance (hereinafter, the Investment Portfolio).

The Ordinance abolishes the list of international financial organisations which securities are allowed for making pension savings investments from NGPF implementing obligatory pension insurance. At the same time, there is a possibility to invest these assets into securities of any international financial organisations cleared for the placement and/or public circulation in the Russian Federation pursuant to Russian securities market legislation and corresponded to requirements of Regulation Subclause 1.4.1 of Clause 1.4.

The document also amends the requirements to the NGPF investment portfolio structure. Namely, until 1 January 2016 the bonds of credit institutions and legal entities-members of banking groups, bank holdings with a remaining repayment term, their remaining early repayment term per owners’ claims as envisaged by the issue conditions or the remaining term of obligatory acquisition by the issuer of more than three months and deposits with the remaining repayment term over three months, overall may account for up to 60 percent of the investment portfolio but not more that 40 percent of the investment portfolio starting 1 January 2016.

The Ordinance has been sent to the Ministry of Justice of the Russian Federation for state registration.

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30.06.2015 00.00.00