Participants in the activity of investment funds
Investment fund manager
The manager of the investment fund may be a legal entity that has a license to carry out activities for the trust management of the property of investment funds. When concluding a contract between a management company and an investment fund, it reports such information as the company name, number and date of issuance of a license to conduct trust management of the property of unit investment funds, location and postal address, contact phone numbers, manager's name, license validity period, grounds for its suspension and renewal. The minimum amount of own funds of the management company of investment funds and the period of validity of the license is established by the federal executive authority for financial markets.
The investment fund agreement with the manager must comply with the mandatory conditions approved by the federal executive body for the securities market. Signing of the contract with the manager, as well as making changes and additions to it, are carried out by decision of the Board of Directors of the investment fund, adopted by a qualified majority of two-thirds of the total number of councilors. The form of the contract contains the subject of the contract, the character and duties of the manager, the amount of his remuneration, a list of restrictions in the actions of the manager, and also the measure of responsibility of the manager.
A fund agreement with a manager must contain the following mandatory conditions.
Subject of the agreement. The Fund entrusts, and the manager assumes the responsibility to manage the fund in accordance with the legislation and legal acts of the federal executive body for the securities market and the charter of the fund.
Rights and duties of the manager. The manager has the right to take all actions that, in accordance with US law, may be performed by the sole executive body of the joint-stock company. The duties of the manager include:
• to report to the board of directors of the fund before the shareholders' meeting on the activities of the fund with all the necessary materials, as well as proposals on the investment policy of the fund;
• organize the provision and disclosure of information on the activities of the fund in accordance with the requirements of the acts of the federal executive body for the securities market;
• organize the fulfillment of the fund's obligations, stipulated by the agreement with the specialized depository of the fund, regarding the storage and recording of rights to its property, as well as control over the disposal of this property. Provide the specialized depository of the fund with all the documents and information necessary for its storage and recording of rights to the assets of the fund, as well as control over the disposal of this property;
• organize the accounting and reporting of the fund;
• organize the maintenance of the register of shareholders of the fund and monitor the accuracy of its management;
• ensure the correctness and completeness of payment of dividends to the fund's shareholders.
The amount of the remuneration to the fund manager. The contract should provide for the fund's obligation to pay the remuneration to the administrator and its amount. The annual remuneration of the manager specified in the contract should not exceed 10% of the average annual value of assets, minus the liabilities of the fund, calculated as the sum of the assets' value less the liabilities of the fund at the end of each quarter during the financial year, divided into four. The contract should not provide for the recovery of any expenses of the manager.
Restrictions on the activities of the investment fund manager. The manager on behalf of the fund is not entitled:
• Acquire objects not listed in the fund's investment declaration;
• Make transactions that result in violation of the requirements of the acts of the federal executive body for the securities market, including requirements for the composition and structure of assets of investment funds;
• Gratuitously dispose of the assets of the fund;
• assume the responsibility for the transfer of property, which at the time of the acceptance of such an obligation does not belong to the fund;
• raise borrowed funds if the aggregate amount of the fund's debt under all loan agreements and loan agreements exceeds 10% of the book value of assets as of the last reporting date. The term of borrowing for each of the loan agreements and loan agreements, including the extension period, can not exceed three months;
• provide loans and loans;
• use the assets of the fund to ensure the fulfillment of its own obligations and obligations of third parties;
• act as guarantor and guarantor of performance of obligations by third parties;
• use as collateral for the performance of the fund's obligations property that is more than 10% of the book value of the fund's assets;
• make futures and forward transactions;
• acquire derivative securities;
• to acquire the objects indicated in the investment declaration of the fund from their affiliated persons or to alienate such objects to them;
• Acquire shares of investment funds, investment shares of unit investment funds;
• to purchase securities issued by him, his affiliated persons, a specialized depositary, shares of investment funds managed by his affiliated persons, as well as investment shares of unit investment funds whose property is in the trust management of his affiliated persons.
The contract prohibits the manager to issue other securities other than shares, and alienate his property to the fund. The contract can not limit the responsibility of the manager, as well as exempt him from such liability to the fund for failure to perform or improper performance of the assumed duties. In this case, the agreement fixes the right of the fund to terminate it unilaterally with notification no more than 60 days and without payment of any compensation over the accrued compensation to the manager.
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