The Bank of Russia proposed combining the activities of insurance organizations, non-state pension funds (NPFs), microfinance organizations (MFOs) and management companies (MCs) with investment consulting activities. This is stated in the report of the regulator.
“The Bank of Russia proposes to allow combining the activities of insurance organizations, private pension funds, microfinance organizations and management companies with investment consulting activities,” the report says. The Central Bank believes that such innovations will not require changes in terms of the capital adequacy requirements of these organizations, however, some adjustments will have to be made to the legislation on the securities market, insurance, private pension funds, investment funds and microfinance organizations.
In addition, the regulator notes that the additional risks arising from this “will cause the need to simultaneously improve the relevant requirements for the activities of investment advisors.” “Also, to provide additional protection of the rights of clients of financial institutions, it may be necessary to adjust the approaches to the definition of investment consulting activities,” the document says.
Earlier today, the Central Bank proposed to allow insurers, non-state pension funds, microfinance organizations, professional participants and management companies to provide payment services. Now, according to the legislation, they cannot do this.