The Investment Projects Management Committee’s Regulation

The Investment Projects Management Committee (the IPMC) is a standing RAFMM body and is a part of the Association’s Executive Board, setting as its goal conditions’ development of the project planning, realization and monitoring of the RAFMM participants’ project’s functioning, focused on the empowerment of the collective fund’s investment in any particular financial tools. The IPMC activity is based on the Investment Projects Management Committee’s Regulation and includes several relevant directions: investments at the currency and stock market, as well as at the venture operations market.

Today at the mentioned financial markets the number of the topical trends is indicated, which are typical to the domestic segment of the market, as well as for the international market in whole. These trends are limitation of the raised funds’ volumes, duration of the raising funds’ process, risk increase of the pay inability and bankruptcy, and more the profit reduction in connection with the necessity of payments on the borrowed assets.

That is why the Investment Projects Management Committee’s activity is directed to the variety of aims which are necessary for the successful realization of any RAFMM participant’s investment project. In particular, the admitted by the IRMC Regulation work plan should provide the fair volume of investments for realization the investment project in whole and at every stage of the settling period, optimization of the financing sources’ structure, capital costs cutting and the most important for today the decrease of the investment project’s risk.

Moreover, the development of the new company, meant for the investment project’s realization, i.e. venture financing, is one of the investment project financing form, controlled by the RAFMM participants. The venture financing allows to obtain funds for fulfillment the initial stages of the investment projects realization, which are characterized by the heightened risks, but at the same time by capabilities of the substantial companies value increase, which were established for the purpose of projects’ realization. The venture financing implies funds’ obtaining in authorized capital of the investors’ company, which initially plan to sell their share in the capital after during investment project’s realization its value increase in many times.

In such a way, the IPMC activity should eventually provide the presence of the independent control’s presence of the RAFMM participants’ investment projects’ efficiency, as well as of other finance companies.

Content

1. General provisions

2. Goals and objectives of the IPMC activity

3. The IPMC competence

4. Committee’s reorganization

5. Requirements for the investment projects

6.Decision making

7. Final provisions

1. General provisions

1.1. The present document regulates the Investment Projects Management Committee’s (hereinafter – the IPMC) activity and includes the key provisions concerning committee’s activity.

1.2. Any provisions of the present document are mainland in the IPMC activity and additional concerning Basic Regulations. Any contradictions to the Basic Regulations can be considered as the reason for provisions’ revising of the present document in order and on terms described below.

1.3. The present document includes all provisions concerning the IPMC activity, decision tree, the IPMC reorganization and document’s revision.

1.4. The IPMC Regulation is an agreement about the Committee’ operating procedure, which is admitted by every Association’s participant, regardless of the participant’s status inside of the Committee.

1.5. The present document can be extended by any additional specialized annexes or instructions in the case if such decision was made in order and on terms, described below. Any annex to this document or IPMC instruction is an integral part of the present Regulation, should correspond and agree with its and Basic Regulations’ requirements. An annex of the present Regulation is applicable to all IPMC business lines and an instruction can describe the separate (specific) line of its business.

2. Goals and objectives of the IPMC activity

2.1. The IPMC is an integrated part of the Russian Association of Financial Market Members (hereinafter – the RAFMM), developed for the investment projects’ regulation, including the collective investing (funds) and collective leadership (pools) at financial markets.

2.2. The IPMC business priorities are:

1. Setting of a common standard for investment projects’ assessment;

2. Formation of the minimum requirements’ list for the investment projects;

3. Investment projects’ assessment from the point of correspondence the minimum requirements of the IPMC;

4. Monitoring of the active investment projects;

5. Setting of a common standard for client’s informing about investment projects’ activity and risk, related to investment activity;

6. Assistance in dispute (conflict) situation between investment projects and its clients;

7. Counteraction the fraud in the investment project sphere and inappropriate advertising methods.

2.3. The IPMC major working principles are:

1. Objective, relevant and unbiased assessments;

2. Monitoring transparency;

3. Unbiased approach to the recommendation’s setting of the investment project’s appraisal for the Executive Board.

2.4. The IPMC net working results are:

1. Investment project’s assessment for correspondence to the IPMC minimum requirements (as simultaneous or periodical process);

2. Executive Board’s recommendation on the investment project’s appraisal (as simultaneous process);

3. Investment project’s monitoring (as long-term process, including delivering of information about informative project’s current state, and also – archives of the previous states).

   
   

   3. The IPMC competence

   
   

   3.1. Investment project’s assessment, made on the basis of IPMC specialists’ analytical work with the following delivering for the Executive Board’s consideration.

   
   

   3.2. The IPMC can recommend Executive Board to appraise the investment project, as corresponded to the minimum requirements for the investment projects.

   
   

   3.3. The IPMC assessment or recommendation can be contested by the Executive Board, if at the Executive Board’s voting concerning the IPMC activity more than 75% of votes will be given for result’s cancellation.

   
   

   3.4. The IPMC can influence on any Executive Board’s consideration of the investment projects, by giving additional information (analytical work’s results) to the Executive Board.

   
   

   3.5. The IPMC can be involved by the Executive Board or other committees in any other objects’ consideration, connected with financial markets, if it is needed, by giving written notification (as well as in electronic format) of the consideration’s committees-initiators.

   
   

   4. Committee’s reorganization

   
   

   4.1. The IPMC can reorganize its own structure by admission of a new member from the RAFMM participants or excluding members from the active members of the IPMC.

   
   

   4.2. Two alternative variants of the IPMC formation procedure have the following order:

   1. In the case of the admission/exclusion IPMC members at the initiative of one of the IPMC participants the vote is took inside of the committee on the principle of the votes’ majority.

   2. 2. In the case of the admission/exclusion IPMC members at the external initiative the vote is took by Executive Board on the principle of the votes’ majority.

   
   

   5. Requirements for the investment projects.

   
   

   5.1.For the purpose of effective control over activity of the RAFMM participants’ investment projects the appraisal system is introduced, providing release of the documents, which confirm the investment project’s testing for conformance to standards, developed by the Committee.

   
   

   5.2.The compliance test procedure of the investment project to the RAFMM standards is carried out after the request for proper type certificate obtaining is received.

   
   

   5.3.The current list of the certificates is:

   a) Fund investment project;

   b) Investment project at the currency market;

   c) Venture investment project

   
   

   5.4. Each of the certificates is given for a term of 2 years with the following renewal in the case of maintaining the conditions of the certificate commission requirements.

   
   

   6. Decision making

   
   

   6.1. The following alternative decisions are declared as the main result of the investment project’s consideration by the IPMC members:

   а) To admit the investment project for monitoring;

   b) To reject the application for the investment project monitoring;

   c) To certify the investment project as corresponding the IPMC minimum requirements (and to issue a certificate of a proper type);

   d)To reject the application for investment project’s certification as contradictory the IPMC minimum requirements;

   
   

   6.2. The recommendations on the investment project’s optimization (improvement); the instructions, explaining the point of the considered decision and their range of use; and also other accompanying documents are the additional consideration results of the investment project by the IPMC members.

   
   

   6.3. The consideration result is admitted by the IPMC members by means of putting to vote the different decision variants, which can be put forward by any IPMC member.

   
   

   6.4. The IPMC consideration result is a decision which gets the votes’ majority during the voting. In the case if none of the decisions got the majority of votes the IPMC members hold additional consultations (meetings) and coordination, according to their results new vote is set.

   
   

   7. Final provisions

   
   

   7.1. The present document includes the description of the all IPMC types of activity in the frameworks of the committee’s competence, including decision making procedure and committee’s structuring.

   
   

   7.2. The document can be amended or revised by rectification after the IPMC voting in case if more than 75% votes were for the amendments acceptance.

   
   

   7.3. The document can be amended or revised by rectification after Executive Board voting in case if more than 75% votes were for the amendments acceptance.

   
   

   7.4. The document can be amended at the RAFMM President’s initiative.

   
   

   7.5. The IPMC activity is realized by decisions making in the case of consultations and thorough analysis of the considering objects. The IPMC participants can express dissent with each other by voting and also by negotiations.

   
   

   7.6. The IPMC competence, determined by the present document, is full in the degree as it does not contradict the Basic Regulations.