Concepts of Investment Fund and Investment Legal Entity

Abstract

The aim of the article is to define the terms investment fund and investment legal entity. To obtainthis aim, the research studies inter alia the definition of the term investment fund provided by Russianfederal legislation; the legal nature of legal relations between investors and management companiesof investment funds, the legal relations between investors and investment funds; the legal relationsbetween private pension funds and persons, who pay pension contributions to private pension fundsor to whom private pensions funds are obliged to pay pension amounts. The paper studied the views ofRussian researchers, Russian legislation and normative acts. On the basis of the sources and researchliterature the author makes the following conclusions: the definition of the term investment fund providedby Russian federal legislation is incomplete; investors have no right in property on assets, which arepart of investment fund; it is incorrect to characterize the relations between investors and managementcompany of investment fund as trust relations; it is incorrect to characterize the contract, according towhich the management company of investment fund manage investment fund, as a trust contract. Theauthor proposes the following: to amend the provisions of law according to which relations betweenmanagement company of investment fund and investor are trust relations; to amend the provisions oflaw according to which investors of investment fund have the right in property on assets, which are thepart of investment fund; to amend the definition of the term investment fund; to elaborate definition of theterm investment legal entity. Besides, the author notes that the opinion expressed in the article is hispersonal opinion and should not be considered as the opinion of the Russian Federation Central Bank.