Qualified Investors Research Articles

О необходимости ограничения возможности инвестирования в ценные бумаги производителей медицинского каннабиса (марихуаны) на территории Российской Федерации

The purpose of the work is to substantiate the need to regulate the securities market associated with producers of medical cannabis (marijuana). Until now, organizations and individuals with the status of a qualified investor can freely acquire, own, and dispose of shares of companies engaged in the production of narcotic drugs based on plant cannabinoids. As a methodological basis, Russian legislation was studied as it relates to professional participants in the securities market engaged in brokerage activities. The Strategy of the state anti-drug policy of the Russian Federation until 2030 was carefully analyzed in terms of threats to national security and the possibility of implementing the mechanisms of this program. Based on the results of the work, the conclusion was formulated that the problem voiced in the article requires an early response from the official authorities. The scientific significance lies in the argumentation of the need to create an interdepartmental commission from representatives of the state, commercial structures and society to formulate general decisions on the problem disclosed in the article. The practical significance lies in the recommendations to the Bank of Russia to consider the possibility of developing instruments that exclude investments in the assets of producers of medical cannabis (marijuana), as well as providing a comfortable time corridor for exiting such assets.

Czech qualified investor definition: considering minimal requirements

In recent years, qualified investor funds have become increasingly popular in the Czech Republic. Those who manage these funds know that only investors who meet the legal criteria to be a qualified investor can become one. In other words, failure to meet the criteria excludes a potential investor from participation. This paper focuses on the criteria to become a qualified investor and their proper fulfilment. Moreover, this paper provides brief thoughts on whether the minimum initial investment sum, as one of the criteria, should be reviewed in the context of recent regulatory developments.

The interconnectedness across risk appetite of distinct investor types in Borsa Istanbul

Purpose This study aims to investigate the interconnectedness across the risk appetite of distinct investor types in Borsa Istanbul. This study also examines the causal impact of global implied volatility indices on the risk appetite of these investor groups. Design/methodology/approach The authors use a novel time-varying frequency connectedness framework of Chatziantoniou et al. and a new time-varying Granger causality test with a recursive evolving procedure by Shi et al. over June 2008 and July 2022. Findings The results show a high level of interconnectedness across the risk appetite of different investor types. The sizable spillovers to domestic types of investors either occur from professional or foreign investors, indicating the long-term dominant effect of foreign and more qualified investors on the domestic investors in Borsa Istanbul. The authors provide significant evidence of causality from the global implied volatility to the Borsa Istanbul risk appetite indices, which are getting stronger after the COVID-19 outbreak. Originality/value Unlike the previous studies, the authors analyze the risk appetite sub-indices of various types of investors to reveal behavioral distinctions and interconnectedness across them. The authors use a novel econometric framework to assess investors’ risk appetite in different investment horizons in a time-varying system. Together with volatility index (VIX), the authors also use volatilities of oil (OVX), gold (GVZ) and currency (EVZ), considering the information transmission not only from stock markets but also energy, metals and currency markets. The present data set covers significant financial crises, socioeconomic events and the COVID-19 outbreak.

Blockchain, Cryptocurrency, and Real Estate: The Current Situation and Prospects for the Next 5 Years

Blockchain technology is a platform for transactions and investment. It includes Cryptocurrencies, of which there are dozens of investment vehicles. Bitcoin and Ethereum are the best known. Crypto is an emerging asset class and offers some portfolio diversification benefits and attractive return rates. Some crypto investments are stablecoins and are tethered to underlying currencies like the US dollar. Blockchain allows ease of access and transparency and provides a cloak of pseudonymity, which may be incompatible with owning real estate, which generally has ownership and transactions as public records. This article provides a brief primer on the intersection of blockchain, cryptocurrencies, and real property. It reviews the various ways that these emerging technologies and instruments are used in real estate investment today. We investigate a blockchain-oriented investment platform, RealT, and report on their business model and customer-servicing interface. Their model offers tokenized real estate to a wide range of qualified investors, and many of the occupied houses feature secure cash flows in the form of Section 8 tenants. If properly developed, the model appears sustainable and can rejuvenate inner-city residential property markets and open the door for a greater ROE for not-for-profit groups.

SICAV in the Czech Republic – success story of continuing failure?

This paper explores the introduction of SICAV in Czech law, its development and the related difficulties including the tax perspective. Although this legal form helped to boost the collective investment sector in the Czech Republic, in particular for qualified investors’ funds, it is under constant threat of law amendments, which have a negative impact on further progress in the popularity of SICAVs as well as other forms of investment funds. SICAV, as a legal form governed by both private (corporate) and public (regulatory) law, presents a good example of how the two sets of partly autonomous rules may clash and cause undesirable effects. The paper highlights the main inefficiencies and discrepancies, which lead to interpretation difficulties and legal uncertainty. The hypothesis of this paper lies in investigating how local factors in one country, such as the influence of other pieces of legislation and tax environment, negatively impact solutions and models which are standardised and successfully deployed across the EU. It is argued that not only legal and regulatory aspects determine the popularity of investment funds, but a wider landscape, including the activities and approach of the supervisory authority and network of professionals (legal and tax advisors or auditors), plays a crucial role in capital markets development

Determinants of Qualified Investor Sentiment during the COVID-19 Pandemic in North America, Asia, and Europe

This work delineates the factors determining investor sentiment in specific regions during the pandemic and the influence of attitudes towards vaccination. The findings show that the reactions of knowledgeable investors in different regions to the economic effects of the pandemic were not uniform but depended on a variety of individual factors. Risk perception varied widely due to idiosyncrasies in specific countries and regions, the level of pandemic information, reaction to case reports and deaths, attitudes towards vaccination, lockdown compliance, and government measures to support businesses. These various elements combined to create different outlooks in the minds of investors that strongly influenced their investment strategies. For this investigation, we tested three estimation models: the classic robust standard error for time series regression, the new robust standard errors regression, and the Prais robust estimation. This study applied the lasso system of machine learning to select relevant explanatory variables. The novelty of our work resides in its analysis of the conduct of informed investors, using a reliable proxy, and the discussion of how government policies and different pandemic-related factors, specifically the vaccination status, affected investor sentiment in different regions. As for practical implications, an understanding of how the various economic factors related to the pandemic influenced the behavior of qualified investors in different regions can help regulators, government leaders, fund managers, and investors deal with a future virus outbreak.

Strategic initiatives for startup development in Russian information technologies

The purpose of the article is developing strategic initiatives on supporting technological startups in Russia. Startups are innovative businesses aimed at such tasks as promotion of new products and services, capitalization growth and earning income for investors; they also contribute to diversification of Russian economy, growth of employment within post-industrial net economy, IT sector and creation of a new country's image worldwide. When developing strategic initiatives the authors relied heavily on the methodology of strategizing suggested by Vladimir Kvint, Foreign member of RAS. The existing trends in changing investment models when more and more corporations are moving from selling products to selling solutions allow optimizing investment by transferring internal processes to outsourcing. It creates additional opportunities for startups as small innovative businesses. Significant opportunities for development appear due to a vast domestic market and fast growth of information technology, and companies and universities' readiness to provide startups with organizational support. It is especially important as unlike sustainable businesses startups have not reached stable sales, do not generate sufficient cash flow and operate on the funds of investors and founders. The authors explain that technological startups can rely on Business Model Canvas that allows flexible transformation of business process in the search for the optimal offer for the consumers as well as provides for development of corporate strategy. Sustainable financing model for small innovative companies is significantly different from standard financial models. The authors conclude that it is essential to create business-accelerators to support startups. They can be founded either by big companies, universities, development institutes or by private foundations. Startup funding sources are not limited to venture investment. They can involve new tools like mutual funds for qualified investors. In addition, the authors present strategic initiatives which can be used by Kaspersky iHub to support startups in information technology and to optimize the performance of a business-incubator.

Brokerage services provided to qualified investors in the countries of the Eurasian Economic Union

Brokerage services provided to qualified investors in the countries of the Eurasian Economic Union

Accredited investor: legal status and problems of taxation

The subject of the research is the legal norms contained in legislation and other legal acts that regulate the grounds for the emergence and the mechanism for implementing the status of an accredited investor, requirements for individuals, as well as certain aspects of taxation of accredited investors. The experience of legal regulation of income from investment activities, used in foreign legislation, is also analyzed in the context of the topic.The purpose of the article is to confirm the need to revise the requirements for accredited investors, to clarify the legislative provisions of the personal income tax. The reason for this study was legislative changes that caused an ambiguous reaction among the entire legal community in Russia.The methodology. General scientific methods were applied in the framework of a comparative, logical and statistical study and analysis of law enforcement and judicial practice in the field of taxation of an accredited investors.The main results. The following issues were investigated. What was the reason for the introduction of the status of an accredited investor in Russian legislation? It was the need firstly to protect the rights of investors, and secondly to regulate and protect the stock market from unconsciously high-risk transactions. What requirements are specified in the law for obtaining this status, what requirements exist in foreign legislation and why does domestic legislation need to be revised? We can divide the requirements for obtaining the status into three general groups: experience, knowledge and risk. Investor is obliged to meet two criteria by European legislation, when only one criterion by Russian legislation. The problem of taxation of qualified investors was raised in the context of the progressive income tax rate. Taxation of qualified investors needs a thorough legislative review in terms of tax deductions.Conclusions. The ideas for the introduction of the status of an accredited investor, of a progressive personal income tax rate were implemented in Russian legislation from the legislation of foreign countries. Such Russian legal rules needs significant revision. The legislative term "accredited investor" should be introduced in legislation system. It is necessary to clarify the criteria for obtaining a status, as well as to consolidate the necessity for accredited investors to comply with two conditions instead of one. Such an initiative would allow investors themselves to approach investing more consciously and would remove risks from brokers. Tax legislation should be amended in part of tax deductions for persons whose main activity is investment, since the current state of affairs discriminates them against individuals in their rights. The revision of the fixed requirements as well as the clarification of the tax legislation will attract investors (both Russian and foreign) to the Russian stock market, while the economy will receive positive growth, intermediaries-brokers and issuing firms will be provided with protection from unconscious risks.

ИИС – шаг вперед, дающий рывок в будущее

The study examines all aspects of individual investment accounts as a long-term financial instrument. The authors analyze the advantages and disadvantages of this tool for private investors and the state, give the main indicators of the development of IIA and the stock market. The paper gives the forecast of the dynamics of the development of the Russian stock market and compares it with the stages of development of the American one. The authors define the new conditions of the “game” and give characteristics of qualified and unqualified investors. The authors pay special attention to the regional aspect, determine the key directions of the development of IIA at the local level. In the conclusion, the ways and prospects of its development are proposed. Individual investment account is investigated as a long-term financial instrument.

US Securities and Exchange Commission (SEC) expands accredited investor definition

Purpose To explain amendments to the definition of “accredited investor” approved by the SEC in August 2020 and to describe the impact of the changes. Design/methodology/approach Explains how the amendments expand the pool of qualified investors in various subsections of the definition, explains related amendments, and then discusses the implications of the changes. Findings The amendments, among other things: (i) permit natural persons to qualify as accredited investors based on certain professional credentials or, for investments in private funds, based on “knowledgeable employee” status”; (ii) add LLCs and other specified entity types to the list of potentially-qualifying entities, and add a “catch-all” category for unspecified entities (although with different quantitative standards); (iii) add the term “spousal equivalent” to the definition; and (iv) codify certain related staff interpretive positions. In addition, the amendments revise the definition of “qualified institutional buyer” to include additional entity types to avoid inconsistencies with the new accredited investor definition. Originality/value Expert analysis and guidance from experienced securities attorneys who counsel clients on all manner of SEC regulatory policy matters.

金融机构的投资者适当性义务：实证研究与完善建议 (Investor Suitability Obligations of Financial Institutions: Empirical Research and Suggestions for Improvement)

Chinese abstract: 金融机构的投资者适当性义务要求金融机构向投资者销售适当的金融产品，体现“买者自负、卖者尽责”的理念，我国逐步建立起了投资者适当性义务制度，但仍有诸多不足，近来也出现中行原油宝等问题。实证研究发现，我国相关案例不多，但增长趋势明显，总体赔偿率低于海外；银行非保本理财产品和投资顾问业务的案件占比很高；原告投资者几乎全部是个人，且多为老年人。适当性义务的履行应避免形式化；应一并关注其“质”和“量”两个维度；应区分适当性义务与合格投资者制度；以合同为主界定民事责任，但发行人承担连带责任有其正当性；应完善责任减免事由，但不能以合同排除适当性义务；应以功能监管为方向统一适当性义务标准。 English abstract: Investor suitability duty of financial institutions requires financial institutions to sell suitable products to investors, which is based on the balance of the two principles of Caveat Emptor and Seller Due Diligence. China has gradually established the system of investor suitability duty, but still suffers from many problems, as evidenced by the recent case of Bank of China’s Crude Oil Treasure. There are several important empirical findings: although there are not many cases, a clear increase in the number of cases can be discerned in recent years; the overall compensation rate is lower than overseas jurisdictions; asset management products offered by the banks have a high incidence of violations; almost all plaintiff investors are individual investors, and are mostly aged persons. A formality approach should be avoided in performing the suitability duty; attention should be paid to the two dimensions of quality and quantity; the suitability duty needs to be distinguished from the institution of qualified investors; civil lability for breaching the suitability duty should mainly be contractual, and it is reasonable for the issuer to bear joint and several liability; liability-mitigating circumstances should be clearly set out, but the duty cannot be contractually precluded altogether; a functional regulatory principle should be adopted to unify the various standards for the suitability duty as applied in different financial sectors.

Глобальный рынок катастрофного финансирования и перспективы его формирования в РФ

The article is devoted to the development of instruments for catastrophe risk financing. The state of the global market for disaster risk financing is analyzed in order to identify the main development trends and the possibilities of using conceptual approaches in the Russian practice of the financial market. It is proven that the development of the catastrophe bond market has prospects in conditions of permanent instability, since catastrophe bonds are unique and highly attractive due to the lack of correlation with macroeconomic events. It is suggested that the instruments of catastrophe risk financing can be considered in the context of the development of sustainable finance. The paper identifies the main problems slowing down the development of the Russian catastrophe bond market, and formulates proposals aimed at developing the market for insurance-linked securities (ILS) in the Russian Federation. Pilot CAT bonds emission prospectuses should be based on structured bonds, with elements of a subordinated bond. There is a need to introduce into the Russian legal field a term defining ILS as a category. It is proposed to register special purpose vehicles (SPVs) and catastrophe funds in Russian offshores. The Russian analogue of catastrophe funds should be a closed-end investment fund with high funding for qualified investors. It is proposed to update the formula for calculating the creation of and the procedure for using reserve funds, in particular with the use of catastrophe risk financing tools. A pilot issue of CAT bonds is proposed to be conducted on behalf of VEB.RF, as bonds sponsoring regions exposed to high natural risks. In the process of developing socially responsible investor practice and tools for socially responsible investments, it is suggested to establish a Russian “Green Index” and to create green ETFs in Russia. Due diligence (DD) approaches are recommended for decisions on issuing catastrophe bonds.

What Drives Qualified Investor Sentiment in a Pandemic State? A Robust Analysis Over North America, Asia, and Europe

This work approaches the factors determining the qualified investor sentiment by different regions during the pandemic state of COVID-19 throughout the period without and with vaccination.The findings show that informed investors present different reactions to the various pandemic factors by regions of investing. Risk perception is not the same among educated investors investing in the different areas due to specific countries and region idiosyncrasies such as pandemic information, reaction to deaths, cases or testing, vaccination confidence, lockdown, health, and business supporting measures efficiency. All of these combined create a different assessment of different stages of Sentiment that condition the investment strategy.The manuscript adopts three estimation models: the Robust standard error for time series regression, the Newest robust standard errors regression, and the Prais robust estimation. Previously this work applied the Lasso Machin Learning system to help select relevant explanatory variables.This work novelty resides in the study of informed investors conduct, using a reliable proxy, and how different pandemic-related features affect them within other regions' scope, considering the vaccination and no vaccination factor.As practical implications, this work may indicate how qualified investors behave within different regions in a pandemic state which can help regulators, government leaders, fund managers and investors to deal with a future outbreak virus.

Forms of structural products for qualified and un qualified investors in Russia

Forms of structural products for qualified and un qualified investors in Russia

Паевые инвестиционные фонды в современной России: критический анализ

<span>В последние три года российские паевые инвестиционные фонды (ПИФы) демонстрируют высокие темпы роста. Одна из причин тому</span><span class="myHorizontalScaleForEmDashSpaceBefore"> </span><span>–</span><span class="myHorizontalScaleForEmDashSpaceAfter"> </span><span>снизившаяся доходность банковских депозитов. Тем не менее активы ПИФов по-прежнему остаются мизерными в сравнении с аналогичными организациями развитых стран Запада. Владельцы паев ПИФов (около 2 млн ед.) более чем наполовину состоят из лиц, четверть века назад вложивших приватизационные чеки в инвестиционные фонды. Результаты инвестирования оказались крайне неудовлетворительными, и ныне на одного из таких лиц приходятся в среднем активы на чисто символическую сумму в 2 тыс. руб. В отличие от регулируемых инвестиционных фондов за рубежом, российские ПИФы обслуживают в основном не широкие слои населения, а узкую группу квалифицированных инвесторов, владеющих паями на сотни миллионов рублей. Банк России в последние годы значительно ослабил требования к ПИФам для квалифицированных инвесторов, рассчитывая, что они хотя бы частично привлекут российский капитал из зарубежных офшоров. Представляется, однако, неясным, приведут ли меры регулятора к уменьшению оттока капитала за рубеж, или, наоборот, отток возрастет.</span>

Home Bias e Desempenho: um estudo com fundos de ações brasileiros

Considering the benefits of investing in foreign stocks, and, in contrast, the occurrence of the home bias phenomenon, this research aimed to analyze the relationship between home bias and performance. The sample of the study is comprised of 488 Brazilian mutual funds. We employed a multivariate regression model to analyze the relationship among the variables. As a performance proxy, we adopted the Sharpe index for the period from January, 2010 to December, 2015. The average level of investments in foreign stocks was the independent variable of interest. The main results indicated that home bias seems to be costly and probably it occurs due behavioral biases. In a second regression model, we also found that the mutual funds designed for qualified investors and those requiring higher levels of minimum value for investment tend to present lower levels of home bias.

КВАЛИФИЦИРОВАННЫЙ ИНВЕСТОР: БУКВА ЗАКОНА ИЛИ ДУХ ЗАКОНА?

The real practice in the recognizing individuals as qualified investors in one of the largest credit organizations – PJSC NB TRUST is considered in this article from the position of a doctrinal interpretation of one of the most difficult categories of civil law – the circumvention of the law. Considering the principles of the qualification laid down by the “spirit of the law” from the perspective of applying the formula: investor- an investor is a qualified investor, the author shows the inconsistency of the existing practice in the recognizing individuals as qualified investors, when ordinary investors using the mechanism of the formal compliance with the law – “letters of the law” were recognized as qualified as investors.

Transformation of corporate governance models in investment funds

The article is devoted to the phenomenon of corporate governance in investment funds, as one of the key elements ensuring the effective functioning of this institution of financial intermediation. A narrow and formal understanding of the term “corporate governance” in mutual funds is reduced to the relationship between owners and leaders of the management companies. This problem is devoid of practical sense in the context of highly concentrated ownership in these companies. The author proposes an expanded interpretation of corporate governance based on considering an investment fund as an “investment corporation”, in which the participants are various categories of investors, fund management, as well as a number of other participants and stakeholders, depending on the nature of the investment process. Considering corporate governance as a system of control and management in Russian investment funds, the author comes to a number of conclusions. The current model considers the protection of the interests of fund investors from the opportunism of managers as a priority and meets the specifics of a certain market segment. The same model, but under different conditions, becomes redundant or even destructive. The analysis of the specifics of the activities of the investment funds for qualified investors makes it possible to formulate adequate changes in the corporate governance model. These include: 1) the transition to a model of coordinating the interests of the investors (controlling and minority), as well as other participants in the investment process, 2) reducing external regulation and moving to internal mechanisms for assessing and making decisions, taking into account the qualifications of the participants themselves, 3) limiting or compensation for the excessive influence of the controlling investor with a concentrated structure of investors.

Management of migration processes in the Russian Federation: analysis and prospects

The article analyzes the migration situation taking into account the social and economic development of the Russian Federation. The statistical data on labor migration, illegal migration, as well as indicators of demographic development and the labor market have been adduced. The forecast of changing the demographic situation has been considered. The main trends in the distribution of foreign workers taking into account the professional-qualification structure have been revealed. The authors stated the growing role of migration in the formation of labor potential and its placement in the country’s territory. The main legal instrument in the sphere of migration, according to authors, is the Concept of the State Migration Policy of the Russian Federation for the period 2019-2025, approved by the President of the Russian Federation, which defines the goals, principles, tasks, main directions and mechanisms for implementing the state migration policy of the Russian Federation. The implementation of the Concept activities will improve the migration legislation, using labor market tools related to determining the needs of the Russian economy for foreign workers, simplifying the entry, exit and stay of qualified foreign specialists, entrepreneurs and investors, and the development of educational and academic migration. Improving the mechanisms for foreign citizens to work on the basis of patents from Russian individuals, to facilitate the territorial mobility of Russian citizens are important aspects of the state migration policy. First of all, economic trends in the management of the state migration policy should be aimed at a balanced distribution of labor resources in the territory of the Russian Federation. Special attention has been paid to the international cooperation in the migration field. Attention has been paid to international treaties, aimed at the implementation of labor activity of migrants, the suppression of illegal migration, as well as international treaties on readmission. The prospects of effective management of migration processes in the Russian Federation on the basis of interaction of various levels of power have been determined.