Retail fund rules expand to unlisted assets and crypto derivatives
The Bank of Russia has expanded permissible investments for retail unit investment funds to include broader unlisted domestic securities and crypto derivatives for qualified investors. Registered by the Ministry of Justice, the ordinance enters into force 10 days after official publication.
Broader asset universe for domestic funds
Management companies managing retail unit investment funds (UIFs) will be permitted to invest in a broader range of unlisted instruments under the new ordinance.
Under existing rules, retail funds are limited to units of open-end UIFs, substitute bonds, and debt of Russian firms supporting technological sovereignty or economic adaptation.
The updated framework permits inclusion of any shares and bonds of domestic issuers as well as fund units not restricted to qualified investors.
The proportion of unlisted assets in fund portfolios remains capped.
In addition, the central bank is authorizing funds to invest capital from qualified investors directly into cash-settled cryptocurrency derivatives.
Tighter group concentration and phased timelines
Alongside expanding asset eligibility, the Bank of Russia restructured portfolio concentration safeguards for retail funds.
The existing 10 percent cap on individual company exposures will now apply across an entire group of affiliated entities rather than single legal entities.
This concentration rule takes effect in one year.
To ensure orderly compliance, management companies of existing funds receive a two-year transition period to align asset structures with the new concentration requirements, while standard provisions take effect 10 days after official publication.
More choice, stricter group guardrails
Expanding eligible assets gives Russian fund managers needed flexibility amid isolated capital markets.
Closing the concentration loophole across affiliated corporate groups provides a critical counterweight against hidden credit risks.
The generous two-year transition window ensures funds can adapt without forcing disruptive asset sales.
Source: New investment rules for UIFs
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