The Protection of Mutual Funds Investors’ Rights in the Context of Digitalization: Russian and Foreign Practice

Abstract

The Aim: The aim of the research is to formulate proposals for the development of Russian legislation on the protection of the rights of owners of investment Fund units, taking into account the positive legal experience of foreign countries in the conditions of modern technological changes. Methodology. The authors of the research used both General scientific methods of synthesis, analysis, dialectical method, and special scientific methods: comparative legal, formal legal and others. In particular, the norms of the Federal law “on investment funds”, the procedure and mechanisms of investment in countries such as Russia, the USA, the UK, Germany were analyzed, the experience of investment insurance was studied not only at the state level in some foreign countries, but also at the supranational level within the framework of the functioning of international organizations. Results. As a result of the analysis of the Russian and foreign legal experience of investment, it is shown that in the world practice there are two models of investment insurance: the contractual model and the model of compulsory investment insurance. At the same time, the compensation scheme works in case of insolvency of the financial intermediary, guaranteeing investors the return of their invested funds. It is proposed to take into account the experience of the United States and Germany on incomplete coverage in the amount of 90% of the investment amount, which will contribute to a more thoughtful choice of financial intermediary and more competent policy of policyholders. The study indicates that the extension of the mechanism of functioning of the compulsory insurance system to some forms of investment activity, in particular, investing through participation in mutual funds, are appropriate and timely, since there are necessary prerequisites and opportunities for such changes in the state regulation of the financial market. Digitization of the application process for the acquisition, exchange and redemption of mutual Fund units should also be introduced. Originality/Value. The article analyzes the topical issue of strengthening public confidence in mutual funds and increasing the attractiveness of investing money in units, including by ensuring the rights of investors who own shares in a mutual Fund, as well as their protection. Proposals for improvement of the Russian legislation taking into account positive foreign legal experience in the considered sphere are developed.