Temporary Regulation on Maintenance of a Register of Holders of Investment Units of a Unit Investment Fund January 12, 1996 Note: This text is not to be considered an official translation of this regulation. General Provisions Requirements for the Register of Holders of Investment Units of a Fund Documents Confirming Entries in the Register of Holders of Investment Units of a Fund Procedures for Maintaining the Register of Holders of Investment Units of a Fund Responsibilities of the Registrar of a Fund In accordance with Decree No. 765 of the President of the Russian Federation "On Additional Measures to Increase the Effectiveness of Investment Policies of the Russian Federation" (July 26, 1995), the Federal Commission on Securities and the Capital Market of the Government of the Russian Federation resolves: 1. To approve the attached Temporary Regulation on Maintenance of a Register of Holders of Investment Units of a Unit Investment Fund. 2. To establish that the Specialized Depository of unit investment funds is to maintain the register of holders of investment units in accordance with requirements of the Temporary Regulation on the Maintenance of a Register of Holders of Investment Units of a Unit Investment Fund, on the basis of the license by Federal Commission on Securities and the Capital Market of the Government of the Russian Federation to act as a Specialized Depository of unit investment funds. The Specialized Registrar of a unit investment fund is to maintain the register of holders of investment units in accordance with requirements of the Temporary Regulation on the Maintenance of a Register of Holders of Investment Units of a Unit Investment Fund, on the basis of the license by Federal Commission on Securities and the Capital Market of the Government of the Russian Federation to render professional services involving the maintenance of registers of holders of registered securities. 3. To establish that the rules of the Specialized Depository (Specialized Registrar) of a unit investment fund pertaining to the maintenance of the register of holders of investment units of a unit investment fund which were developed in accordance with requirements of the Temporary Regulation on the Maintenance of a Register of Holders of Investment Units of a Unit Investment Fund are to be submitted to the Federal Commission on Securities and the Capital Market of the Government of the Russian Federation, together with other documents necessary for the registration of the rules and issue prospectus of a unit investment fund. 4. To establish that the requirements established by the Temporary Regulation on the Maintenance of a Register of Holders of Registered Securities, confirmed by Resolution No. 3 of the Federal Commission on Securities and the Capital Market of the Government of the Russian Federation (July 12, 1995), and Clauses 10, 11 and 12 of Regulation No.6 of the Federal Commission on Securities and the Capital Market (August 30, 1995), are not to be applied to the rules for maintaining a register of holders of investment units of a unit investment fund. 5. To establish that the Specialized Depository (Specialized Registrar), the Management Company of a unit investment fund, agents for the distribution and redemption of investment units of a unit investment fund are required to provide to holders of investment units and other interested parties the rules for maintaining the register of holders of investment units. Changes and additions to the rules for maintaining a register of holders of investment units of a unit investment fund shall come into effect in accordance with procedures established by acts of the Federal Commission on Securities and the Capital Market of the Government of the Russian Federation for putting into effect changes and additions to the rules and issue prospectus of a unit investment fund. 6. The Federal Commission on Securities and the Capital Market of the Government of the Russian Federation or a person appointed thereby has the right to verify observance of the requirements for maintaining register of holders of investment units of a unit investment fund. The Specialized Depository (Specialized Registrar) of a unit investment fund is required to provide the information and documents necessary for such a review. 7. In Clause 56 of the Standard Rules of an Open Unit Investment Fund, approved by Resolution No. 13 of the Federal Commission on Securities and the Capital Market of the Government of the Russian Federation (October 13, 1995), after the words "entered into the Fund's register of holders of investment units," the words "and the appropriate extracts from it shall be issued" are to be eliminated, with further text remaining unchanged. 8. In Clause 57 of the Standard Rules of an Interval Unit Investment Fund, approved by Resolution No. 14 of the Federal Commission on Securities and the Capital Market of the Government of the Russian Federation (October 16, 1995), after the words "entered in the Fund's register of holders of investment units," the words "and the appropriate extracts from it shall be issued" are to be eliminated, with further text remaining unchanged. Chairman A.Chubais Temporary Regulation on Maintenance of a Register of Holders of Investment Units of a Unit Investment Fund 1. General Provisions 1. This Temporary Regulation on Maintenance of a Register of Holders of Investment Units of a Unit Investment Fund (hereafter, the Regulation) establishes requirements for the register of holders of investment units of a unit investment fund, the procedures for maintaining such a register, and the responsibilities of the Specialized Depository (Specialized Registrar) that maintains the register of holders of investment units of a unit investment fund. The requirements of this Regulation are mandatory for a Specialized Depository of a unit investment fund or a Specialized Registrar that maintains the register of holders of investment units of a unit investment fund in accordance with a contract concluded with the Management Company of the unit investment fund. 2. The following terms are used in this Regulation: "Fund" -- an interval unit investment fund; "Management Company" -- the Management Company in whose trust management the property of a unit investment fund is held; "Federal Commission" -- The Federal Commission on Securities and the Capital Market of the Government of the Russian Federation; "Holder of an investment unit of a fund" -- a person with respect to whom an entry is made in the register of holders of investment units of the fund, specifying the number of investment units of the fund owned; "Investor" -- a person who has paid for the investment units acquired by him in accordance with fund rules, and with respect to whom no credit entry has been made in the register of holders of investment units of the fund; "Distribution of the investment units of a fund" -- the purchase of investment units of a fund by investors in accordance with procedures established by the fund rules; "Payment of the redemption price for investment units of a fund" -- a transfer of cash funds in an amount equal to the redemption price of investment units from the account where the cash assets of the fund are held to the account of the holders of investment units or the person who is authorized to distribute and redeem investment units of the fund; "Register of holders of investment units of a fund" -- a set of entries pertaining to the fund, the total number of placed and redeemed investment units of the fund, the holders of the investment units of the fund and the number of the investment units they own, and documents constituting grounds for making entries about purchase and redemption of fund investment units; "Registrar of a fund" -- the legal entity that maintains the register of holders of investment units of the fund in accordance with the requirements of this Regulation and the fund rules. 2. Requirements for the Register of Holders of Investment Units of a Fund 3. The Registrar of a fund is required to: Maintain the register of entries in chronological order; Open personal accounts for holders of investment units for the fund and introduce credit and debit entries within a period established by the fund rules and only upon receipt of all the required documents and after verifying the accuracy of the information they contain; Maintain a record of issues and redemptions of certificated investment units of the fund, if the latter are issued in certificated form; Record and safekeep documents constituting the grounds for making credit and debit entries in the register of holders of investment units of a fund; Issue extracts from the register of holders of investment units of the fund in accordance with procedures established by the fund rules and this Regulation; Verify that information about each investor, the number of his personal account (should such exist) and the number of the investment units paid for by him, as indicated in the application to purchase investment units of the fund, corresponds with information in the documents submitted to the Registrar about the receipt of payment for the investment units; Verify that the number of investment units specified in an accepted application to redeem investment units corresponds with the number of investment units recorded in the personal account of the owner; Provide information to the Management Company about the number of investment units placed and subject to redemption, in accordance with procedures established in the contract concluded with the Management Company; Provide information to the Management Company about the number of investment units for which redemption applications have been received and verified by the Registrar of the fund. Pursuant to the fund rules, the register of holders of investment units of a fund may be maintained in paper or electronic form. 4. An entry made in the register must include the following information: The entry number (this number is assigned consecutively, depending on when the entry is made); The name of the person to be entered into the register as the owner of the investment units and the number of his personal account; The entry date and time (the entry date is the date when the fund's Registrar receives the last of the documents which, in accordance with this Regulation, constitute grounds for making a credit or debit entry); The number of investment units recorded on the personal account of the holder of investment units of a fund, and any change in this number due to purchase or redemption of investment units. 5. The Registrar of the fund is to open a personal account in the name of each holder of investment units simultaneously with introducing a entry into the register records. Each personal account is assigned its own number. The personal account must include the following information about the holder of investment units: For physical persons, their full name, information from their identification document, their address, and information about their authorized representative if one is appointed; For legal entities, the full official name of the legal entity, the full name and position of the person entitled to sign the documents when the investment units are purchased or redeemed, information about the authorized representative (representatives), if appointed, the name of the registration agency, the registration number and date, the legal address, and the bank requisites; The number of investment units entered in the name of the unit holder, and any changes, together with the date and number of the corresponding entry in the register; Documents constituting the grounds for making credit or debit entries; If the investment units are issued in certificated form, the certificate and its number, the number of certificated investment units, the date of issue of the certificates, the cancellation date of the certificates, and the date when a new certificate was issued in place of a lost one. Information about the number of investment units recorded as of a certain date in the register of holders of investment units of the fund on the personal accounts of holders of investment units constitutes the grounds for determining the number of investment units placed as of this date. 6. The Registrar must stamp each document received, indicating the date and time of its receipt. The Registrar of the fund is required to record and safekeep all the documents its receives which constitute grounds for making credit and debit entries in the register of holders of investment units, as well as requests and copies of extracts from the register provided to holders of investment units. The Registrar must keep these documents in custody for at least three years from the date of their receipt. The fund's Registrar is required to safekeep the information about the holder of investment units that is recorded in the fund's register of holders of investment units for at least three years from the date when such person ceased to be an investment unit owner. 7. The fund's register of holders of investment units must include information about any pledge of investment units to secure obligations of their holder. At the request of a holder of investment units, the Registrar is to enter into the holder's personal account information about the number of investment units pledged by the owner, and also information about the pledgeholder. 8. The Registrar may block operations with investment units on the holder's personal account only if provided with documents confirming a court ruling to terminate the holder's right of ownership or documents about the levy an execution on the investment units, establishing the term of a right of inheritance or a transfer into pledge. When blocking an account, the Registrar must enter into the personal account information about the number of investment units blocked and about the documents serving as grounds for blocking the account, and the dates when the account was blocked and will be released or about an event, the approach of which will terminate the block. Upon expiration of the established term for blocking the account, as indicated in the documents serving as grounds for blocking the account or upon the receipt of documents confirming the approach of the event terminating the block, the Registrar is to enter into the respective personal account information about the release of the account. 9. A written notification submitted to the holder of investment units of a fund serves as grounds for entering information about a pledge. In addition to this notification, the holder of investment units is to receive a certified copy of the pledge contract and a certified copy of the contract for the principal liability secured by the pledge, which specifies the terms of pledge (if no separate pledge contract exists). 10. Holders of investment units are required to inform the fund Registrar in a timely fashion about changes in the requisites indicated on their personal accounts. The Registrar is not to be held liable for losses if the holders of investment units failed to submit information, submitted incorrect information, or failed to submit in a timely fashion information about changes in their requisites and any other information constituting grounds for entering information in the register of holders of investment units, in accordance with this Regulation. 3. Documents Confirming Entries in the Register of Holders of Investment Units of a Fund 11. The extract from the register of holders of investment units of a fund is a document issued by the fund Registrar to the holder of investment units of the fund. The fund Registrar is to provide an extract from the register of holders of investment units of a fund to a holder of investment units no later than the day after a credit or debit entry is made in the register of holders of investment units of the fund, in accordance with procedures and deadlines established by the fund rules, and, in other cases, upon request of the owner of investment units. 12. The extract from the register of holders of investment units of a fund must include the following information: The date of issue of the extract from the register of holders of investment units of the fund; The full name (full official name) of the investment unit holder, the number of the personal account of the investment unit holder; The number of investment units entered in the register in the name of the investment unit holder, as of the date indicated in the extract; The number of investment units redeemed by the Management Company as of the date indicated in the extract (if an application to redeem investment units was submitted); The date and time of the last entry made in the register concerning a change in the number of the investment units belonging to the holder, the unabridged text of this entry and the requisites of the application on the basis of which the entry was made; The full name of the fund, the full official name and location of the Management Company of the fund, the Registrar, and the agent for distribution and redemption of the fund investment units (if such exists); The full name and signature of the Registrar official, certified with a stamp. 13. If the fund's investment units are issued in certificate form, each holder of investment units must receive a certificate executed in his name and confirming his rights to the investment units. It is forbidden to issue more than one certificate for a single investment unit. 14. If, during the redemption of investment units, the number of investment units being redeemed proves to be less than the number of certificated investment units, the initial certificate must be redeemed and canceled by the fund Registrar and the investment unit owner must be issued another certificate confirming the holder's right to the remaining number of investment units recorded on his personal account. 15. If the investment unit owner holder reports that a certificate has been lost or damaged, the Registrar is required to issue him a new certificate in place of the lost one, on the basis of the entry in the personal account of the investment unit holder in the register of unit holders. 16. If investment units are split, the certificates that have been previously issued to the holders of investment units must be replaced with new ones upon an application by the investment unit holder to the Registrar. The new certificate must contain information about the number of investment units recorded on the personal account of the investment unit holder, in light of the changes that have resulted from the split of the investment units. 4. Procedures for Maintaining the Register of Holders of Investment Units of a Fund 17. The Registrar is required to ensure the maintenance and safekeeping of the register of holders of investment units of a fund, from the opening date of the primary issue of the investment units of the fund. 18. Grounds for the Registrar to make credit entries into the register of holders of investment units of a fund are an application to purchase investment units and documents confirming receipt of the necessary cash funds in payment for the acquired investment units. Grounds for the Registrar to make debit entries into the register of holders of investment units of a fund are an application to redeem investment units and the documents confirming the transfer of cash funds, in an amount equal to the redemption price of the investment units, from the account where the cash assets of the fund are held. If presented with the documents constituting grounds for making a credit entry into the register of holders of investment units of a fund, the fund Registrar must verify the information and enter into the register of holders of investment units of the fund and into the personal account of the investment unit holder the number of investment units acquired, within a time period established by the fund rules from the date of receipt of cash funds in payment for the investment units acquired. If there is no personal account in the name of the investment unit holder in the register of holders of investment units of the fund, the Registrar must open such an account for the holder. If presented with the documents constituting grounds for making a debit entry into the register of holders of investment units of a fund, the fund Registrar must verify the information and enter into the register of holders of investment units of the fund and into the personal account of the investment unit holder a debit entry about the investment units redeemed, on the day of the transfer cash funds in an amount equal to the redemption price of the investment units from the account where the cash assets of the fund are held. 19. The Registrar may not make entries into the register of holders of investment units of a fund if he receives only one of the documents constituting grounds for making entries into the register of holders of investment units of a fund, or if the information in the documents submitted to the Registrar for introduction into the register does not conform with requirements established by the fund rules, the issue prospectus, and this Regulation. If operations on the personal account of an investment unit owner are blocked, the Registrar may not make debit entries in the register of holders of investment units of a fund until the expiration of the time period specified in the documents constituting grounds for blocking such operations or until the receipt of documents confirming the approach of an event that constitutes grounds for terminating the block. Refusing to make entries into the register of investment units on any other grounds is forbidden. If the Registrar refuses to make an entry into the register of holders of investment units of a fund, the Registrar must send a substantiated rejection notice to the Management Company of the fund, the agent for distribution and redemption of investment units of the fund (should such exist), and the person whose application was accepted, within three days after the expiration of the period established by the fund rules for making entries into the register of holders of investment units of the fund. 5. Responsibilities of the Registrar of a Fund 20. The Registrar of a fund maintains and safekeeps the register of holders of investment units of a fund, in accordance with the requirements of the fund rules, the issue prospectus, and this Regulation. 21. Persons who are holders of investment units of a fund may not act as Registrar of that fund. 22. The rights and duties of the Management Company of the fund and the Registrar of the fund are stipulated in the contract concluded by them. The Management Company may conclude a contract for the maintenance and safekeeping of the register of holders of investment units of the fund with only one legal entity. Pursuant to the contract, the Management Company shall transfer to the Registrar all the documents required for maintenance of the register of holders of investment units of the fund. A Management Company that has concluded a contract with a Registrar of the fund is not relieved of its obligations and liability for the maintenance and safekeeping of the register of holders of investment units of the fund. 23. The Registrar is liable, and is obligated to compensate, for damages incurred in the event of violations of the requirements of the fund rules, the issue prospectus and this Regulation. If the register records or the personal account information stored either electronically or in paper form (if the records are kept only in paper form) are lost, the Registrar is required to effect the following measures: Notify the Federal Commission about the loss of the documents, in writing and within one day of the moment when the documents were missed; Publish in the mass media an announcement that all concerned persons must submit documents for the purpose of restoring the missing data; Restore the missing information within 30 days of the moment when the documents were missed. 24. The Registrar of a fund may not delegate to another person the maintenance and safekeeping of the register of holders of investment units of a fund , or transfer to such person documents received by the Registrar and constituting grounds for making entries and recording other information in the register and personal accounts of the holders of investment units of the fund.