The Federal Service for Financial Markets, Russia’s main market regulator, is to relax rules on what pension funds can invest into and so broaden the number and kinds of assets available to fund managers.
The draft laws will be submitted to the government by the end of May according to Sergei Kharlamov, deputy head of the watchdog. Kharlamov said pension funds will be allowed to invest in more bonds, investment fund shares, certificates of deposit and bank deposits.
The government has said that it is pushing ahead with its plans to reform, deepen and broaden Russia’s capital market.
Russia’s lack of a deep domestic investor base exacerbated stock market falls following the exodus of foreign investors last year.
The regulator is itself under the focus and could be merged with other market bodies to form a super watchdog better capable of regulating Russia’s investment markets.
