Pension funds will be forced to compensate customers losses

Non-state pension funds (NPF) will not be able to pass on to their customers losses resulting from investment of pension reserves and accruals. On 9 March the government submitted to the state Duma a bill that requires funds to place funds solely in the interests of their clients. If the Fund has incurred a loss under operations with the customer, we shall reimburse him for the expense of own means. The Fund will be obliged to compensate lost profit.

As explained by Deputy Finance Minister Alexey Moiseev, we are talking about cases where the management of the Fund invested in the interests of the SPC, or any third parties. “This can be identified, for example, during the inspection of the Central Bank”, — said the Deputy Minister. According to Moses, if funds in customer accounts decreased due to the fact that the Manager deliberately invested in low-quality assets in someone’s interests, the shareholders of the Fund will be required to make up losses — to assess additional into personal accounts of customers lost amount.

Market risks pension funds, whereby the Fund suffers losses due to objective reasons (for example, when the collapse of the market), now insured by the government, but the guarantee system of pension savings compensates only the value of savings.

Earlier with the initiative to impose the liability of the shareholders of the Fund for investment in poor and low-yielding assets was the Bank of Russia. “The funds operate and invest pension savings in the interests of their clients, however how much income they should earn them, not written down anywhere, said earlier the Director of the Department of collective investments and trust management of securities Philip Gabunia. “If we understand that the NPF is not acting in the interests of the client, and for example, in its own interests, it will be claimed and will be assessed, how the Fund should reimburse the funds,” said Gabunia. You can invest in any quality projects, but for the risk you have to pay, the yield should not be lower than OFZ, he added. For example, if the owner of the Fund invests clients in their projects and receives income lower than OFZ, the controller may require him to assess additional to your account “lost profits”.

The General Director of consulting company “Pension partner” Sergey Kolesnov said that the regulator will be very difficult to prove that the management of the Fund by buying some paper, did not act in the interests of clients. “For example, what if the Fund was invested in risky bonds getting a good return, and then the company went bankrupt? As the Central Bank determines that it is a defective tool, if it meets all the requirements of the law?”, — he argues. Not less difficult, according to Okolesnova, the regulator will be to prove the interest of the shareholders or management of the Fund investment in an asset. “The last time the Central Bank has revoked a lot of licenses, but nowhere is not legally sound then that the Fund was deprived of the license for investment in affillirovannye structures or illiquid assets,” he said. “I think that the Central Bank will be almost impossible to prove the interest of the shareholders without the involvement of law enforcement agencies,” he said.

“There is a risk that funds can really limit their risks, by investing in the most conservative instruments,” says Chairman of the Board of Directors of the European pension Fund Evgeny Yakushev. According to him, this may lead to decrease of profitability of investment, which is clearly not in the interests of clients NPF.

Over the past year, the regulator found some cases where pension funds have invested clients ‘ funds in non-marketable assets or interests in affiliates. the Most notorious case was the bankruptcy of the Fund group Anatoly Motylev. In August 2015, the regulator revoked the licenses of seven funds, which was controlled by the banker. According to estimates of the Central Bank, there were 50.6 bln rubles of pension savings, of which, according to preliminary estimates by the Central Bank, illiquid assets — for the sum more than 35,6 billion roubles As previously reported , funds Motylev invested in illiquid securities of affiliated companies as well as mortgage is participation (ISA), the liens on which have been revalued land in the suburbs.

The last story involves a Fund Transstroy and Professional independent pension Fund managers in February 2016, the state office of public Prosecutor has accused of embezzlement 117,8 million rubles, Investigators found that the funds invested citizens in illiquid assets, funds made available to management. Their future pension to NPF “Transstroy” held more than 27 thousand people, customers, Professional independent pension Fund was more than 34 thousand people.