The Central Bank of the Russian Federation plans to oblige non-state pension funds to identify and manage conflicts of interest
From January 1, 2025, the Bank of Russia wants to oblige non-state pension funds (NPFs) to identify and manage conflicts of interest.
At the same time, funds will be able to allow them to arise only if this does not violate the rights of clients and they are notified of a conflict of interest, the regulator said in a statement.
The Central Bank has developed draft requirements that are designed to protect the interests of depositors and insured persons. The document defines the rules for identifying conflicts of interest and describes specific situations in which they may arise.
The requirements for non-state pension funds are similar to the approaches to regulating conflicts of interest of professional participants and management companies and are aimed at strengthening the protection of the rights and legitimate interests of their clients
The project has been submitted for public discussion, the Bank of Russia accepts comments and suggestions until June 28 of this year.
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Putin instructed to extend the period for co-financing long-term savings of Russians
On June 7, Russian President Vladimir Putin instructed to extend the period for co-financing voluntary long-term savings of Russians.
The head of state recalled that a program to support such savings was launched in the country on January 1. According to him, it “is still lagging behind the target indicators,” and therefore Putin ordered, as part of additional adjustments to the work, to sharply increase the period of co-financing of citizens’ savings, which is currently three years.
I consider it correct and justified to extend it to at least ten years
Putin signed the law on the launch of a long-term savings program in Russia in July 2023. To join it, you need to conclude a special agreement with a non-state pension fund (NPF) and pay savings contributions. According to the presidential decree, the share of long-term savings of Russian citizens in their total volume should increase to at least 40 percent by 2030, and to 45 percent by 2036.
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The Ministry of Finance called for the development of a system of voluntary corporate pensions in Russia
At the end of May, the Ministry of Finance called for the development of a system of voluntary corporate pensions in Russia, which would cover a wide variety of categories of employees. The initiative was voiced by the head of the department for regulation of non-state pension funds (NPFs) of the department, Natalia Kamenskaya.
She admitted that employers who joined such a system would be exempt from income tax on funds allocated to the long-term savings program. The official recalled that this norm is already practiced by companies that have launched corporate programs.
In the future, the ministry plans to legislatively provide for corporate pension provision as a separate type of voluntary pension provision.
The Ministry of Finance noted that the recently launched long-term savings program is aimed at developing a culture of long-term savings among the population. In addition, the authorities hope that the population will begin to have a positive attitude towards non-state pension funds and the state as the guarantor of such savings.
It was previously reported that almost 50 percent of employers in Russia agree to co-finance the accounts of their employees in the long-term savings program. However, many companies are ready to take such steps only if the state helps them, for example by providing certain tax benefits.
According to the Central Bank of the Russian Federation, in 2023, the total portfolio of pension funds in the country exceeded 7.5 trillion rubles, having increased by 7.2 percent over the year. The regulator explains this growth by the profitability of investing funds, as well as the influx of money into the non-state pension system.
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