The Ministry of Economic Development proposed to grant the right to participate in investment associations to individuals, individual entrepreneurs, investment funds and managing partners (participants with management functions). This was reported by RBC in reference to the amendments to the law “On Investment Companies” and the legislation on notaries.
Current law allows only corporations and, in some cases, nonprofit organizations to participate in investment partnerships. Initially, in 2011, private participation was also allowed, but since 2014 it has been prohibited.
Individuals will need to have the status of a qualified investor (assigned depending on the size of the property (owners of assets worth more than 6 million rubles), education and experience in the securities market).
The Ministry of Economic Development hopes that the implementation of the bill will expand the number of participants in investment partnerships; will make more convenient collective investments in risk projects and other investment funds structured in the form of investment companies; will strengthen the confidence of the investment community in the Russian legal system.
In addition, according to RBC, the changes should compensate for the sharp decline in the direct investment and venture capital market. Following the start of the special military operation in Ukraine, the Russian venture capital market renewed its record since at least 2016: in the first half of 2022 it decreased by half.
In Russia, the Law on Investment Companies was adopted in 2011, which introduces the concept of joint investment activity. This form was created, among other things, for the development of direct and risk financing in the country.
It is expected that the modifications will be published soon on the portal of legal acts and will come into force in the second half of the year.
Author:
Anastasia Marina
Source: RB
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