Brokers Association proposes reform of individual investment accounts

The National Association of Stock Market Participants (NAUFOR) sent an appeal to the Ministry of Finance with a number of proposals to modernize the current rules for individual investment accounts of the third type (IIS-3). A letter dated October 5 addressed to Finance Minister Anton Siluanov is from RBC Investments.

In the letter, the association of brokers points out that the new type of account was more in demand among wealthy investors than retail ones, since such accounts have an extended term: now it is five years, and from 2027 it should increase annually by one year and eventually reach ten years.

Moreover, in September, a number of tax measures were announced for citizens’ investments in the securities market, which, according to NAUFOR, can increase the attractiveness of IIS-3. However, even in these circumstances, long-term investment accounts will be a hindrance to retail investors and a deterrent to wealthier customers.

On September 24, the Ministry of Finance submitted to the government a package of bills on the federal budget for 2027-2029. Among the proposals were those that affect the investments of Russians in the stock market. In particular, it was suggested that:

to extend the five-stage personal income tax scale (13–22%) on passive income of Russians, which includes dividends, interest on deposits, securities transactions, sale of property and sale of participation shares; to introduce a tax on passive income in the amount of 15% for closed (ZPIF) and interval (IPIF) mutual funds available to qualified investors.

In this regard, the association offered the Ministry of Finance initiatives to increase the attractiveness of IIS among Russian investors. Some of them are:

Reduce the minimum period of IIS-3 to three years for investors contributing to IIS to ы1 million per year, or retain the right of such investors to receive deductions for contributions when closing IIS after three years from the date of its opening. Allow to credit to the bank accounts of investors coupons on bonds and periodic payments on investment shares, which are accounted for by IIS (similar to dividends). Provide an opportunity to partially withdraw funds from IIS (up to 50%) with the obligation to return them to the account within one year without losing tax benefits. Introduce the possibility for professional participants and management companies to account for their contributions to the IIS guarantee system as part of expenses that reduce the tax base for corporate income tax. Provide an opportunity to open and maintain IIS management companies not only open mutual funds, but also closed and interval mutual funds.

What other initiatives have been proposed to the Ministry of Finance, what problems indicate the association of brokers and three investor associations, as well as how these initiatives are evaluated by representatives of brokers and management companies - read the material by subscription.