On Feb. 5, RUS CB strengthened protection of pension fund clients.
RUS CB issued rules strengthening protection of non-state pension (NPF) fund clients.
Changes Introduced
The standard introduces a cooling-off period when concluding non-state pension agreements (NPA), so that the client now has 14 days to terminate the agreement.
In addition the standard provides a list of information in key information document, which NPF provides to clients before concluding an NPA agreement, is expanding.
This is primarily due to introduction of state insurance of voluntary pension savings.
In addition, the key information document must include a section dedicated to the guarantee system in the event of cancellation of a license or bankruptcy of an NPF.
In accordance with the law NPFs are required to ensure break-even investment.
The key information document will specify the fund’s obligation to reflect the results of investing the client’s funds in the non-state pension fund agreement pension account.
If the NPF suffers losses, it is obliged to replenish the client’s pension account by the same amount and cannot reduce the size of a non-state pension by this amount.
Also, a non-state pension fund cannot reduce the size of a non-state pension and the duration of its payment in the case of a negative result when placing pension reserves.
Effectiveness
The standard is in force on May 5, 2024 (90 days after its official publication).
