The Central Bank of Russia reported that Russia will introduce a guarantee system for assets held in type 3 individual investment accounts (IIAs), providing compensation to investors if the professional participant holding the assets becomes bankrupt. The State Duma has passed the law establishing the framework. The compensation fund will be formed from voluntary contributions by professional participants maintaining IIAs that join the scheme. Operation of the system will be assigned to the existing Federal Public-State Foundation for the Protection of Investors’ and Shareholders’ Rights, which will be renamed the Individual Investment Account Guarantee Fund, and will be responsible for setting contribution amounts and making compensation payments. Investors will be able to apply to the fund if they have not received their assets in full within six months after a professional participant is declared bankrupt and bankruptcy proceedings are initiated, with compensation capped at RUB 1.4 million across all accounts opened with the bankrupt participant. The law also sets participation terms, rules for establishing and investing the fund’s resources, and requirements for the structure and powers of the operator’s management bodies.
Central Bank of Russia 2025-07-15
Central Bank of Russia outlines guarantee system for type 3 individual investment accounts with RUB 1.4 million compensation cap
The Central Bank of Russia announced a new guarantee system for type 3 individual investment accounts (IIAs), offering compensation if the asset holder becomes bankrupt. The State Duma passed the law, renaming the Federal Public-State Foundation for the Protection of Investors’ and Shareholders’ Rights as the Individual Investment Account Guarantee Fund to manage the scheme. Compensation is capped at RUB 1.4 million, with specific terms for fund participation and management.