The Bank is discussing with non-state pension funds (NPF) application of fiduciary responsibility in the case of transactions in shares. The regulator is going in different ways to identify suspicious transactions with securities, who have an active or inactive market. Proposed control approach the market is called raw, and I believe that the presented method will be deprived of funds the opportunity to invest in not very liquid securities.Monday, July 6, was held the first meeting of the working group on the evaluation of Bank of Russia transactions with NPF’s shares in compliance with the best available conditions. This was told “Kommersant” several people close to the range of funds, management companies and the stock exchange, and confirmed in the Central Bank. At the meeting, in particular, the NPF asked the regulator to liberalise the methodology of the evaluation of active market, expanding its criteria. They are also preparing to develop proposals on disclosure Moscow exchange technical tools for the assessment of the NPF deals with shares on a possible application to them of fiduciary responsibility, said the interlocutors of “Kommersant”.In mid June, the Department of investment of financial intermediaries, the Central Bank introduced the NPF and management companies of a presentation “Approaches to the assessment of the NPF deals with shares on compliance with the requirements of fiduciary responsibility” (have read it “b”). According to the document, all transactions are divided into two groups — securities traded in an active market and an inactive market. To determine the activity of the market uses criteria that are presented in the report “methods to assess the activity of the markets of shares traded on the Russian organized market”. Among the absolute measures, the number of shares in free circulation (free float), and the frequency with which to place trades on the market. A relative indicator, in particular, is the proportion of the volume of stock trades per day depending on the free float. In the case of shares on an active market the main indicators of suspiciousness of the transaction is the deviation of its price from the average price calculated over the time interval, and also the concentration of transactions in a pension Fund (more than 25% of daily trade volume). In an inactive market, almost all transactions come to the attention of the regulator.In the case of recognition of the transaction not corresponding to the best available conditions, the Fund is obliged to compensate the customer’s damages. In the case of the active market in which reimbursement is calculated from the deviation of transaction price from the average price. In the case of inactive market calculates the difference between the transaction price and the “correct calculation of the fair value of the asset”. On the calculated amount of damage, the Central Bank will charge a certain percentage based on zero coupon yield curve of government securities for the period, haveedsi since the conclusion of the transaction.The market participants call the method crude. “Buy or sell on an active liquid market something at high or low price is almost impossible,”— said a top Manager of one of the largest NPF. At the same time the liquid market is very volatile, and therefore, deviations from the average price can be large, which immediately creates the risk of fiduciary liability, says his colleague from another Fund. Of illiquid securities matters even more. “The share never trades at fair value, and for that, the funds propose to punish,” says one of them. “The intolerance of the Central Bank to transactions in illiquid securities goes back to the past, when a number of such assets were on the balance of funds on the basis of market interests”,— said the managing Director of “Expert RA” Pavel Mitrofanov. Now risks to fall under fiduciary responsibility repel the NPF from investment in shares for which there is no active market, he said.Measures such as stress testing, fiduciary responsibility, will lead to the fact that the NPF will be more effective to use the mechanisms of control recalibrates in CB are more positive. “The attention of the Bank of Russia for transactions with the shares should not lead to losing interest of the NPF to invest in shares”,— stated in the response regulator. It States that the NPF “for a long time already operate a risk management system, which suggest the presence of a balanced approach to determining the conditions of transactions with financial instruments, including shares in accordance with the best available terms.”Ilya Usov, Pauline Smorodskaya the past two years the most popular liquid shares traded by the NPF, were securities of the savings Bank (turnover RUR 47.2 billion), “inter RAO UES” (RUB 33.2 bln), Gazprom (RUB 29.4 billion), LUKOIL (RUB 29 billion) and “M. Video” (RUB 21 billion). This is evidenced by data of the Central Bank collected from March 2018 and presented in presentation “Approaches to the assessment of the NPF deals with shares on compliance with the requirements of fiduciary responsibility” (have read it “b”). During the reporting period, the turnover of stock in the NPF portfolio amounted to 303.4 billion rubles, of which 82% of transactions in shares traded in an active market (45 most liquid instruments), and 18% in a down market (25 tools). Out of 1.13 million transactions conducted by the funds in an active market, the triggers for suspicious transactions within the framework of fiduciary responsibility kicked in at 15.3 thousand transactions. Two years was also carried out 35 thousand transactions in an inactive market, and all of them worked triggers.Ilya Usov