Risk-management in management companies: from set of instruments to systemic control, 2008

The trust management market development should be based on risk-oriented system of the state regulation and the branch self-regulation.

To perform a social function at the market of collective investments and asset trust management you need to change core conditions in the branch risk-management. The risk-oriented system provides for a "must-be" risk-management system in any management company, development and support of risk-management branch standards with assistance of the state, professional community, self-regulated organizations, rating agencies, risk-managers certification in line with the branch standards.

The reliability of the collective investment market will depend on compensation mechanisms similar to deposit insurance system, aimed at protecting investors from operation risks in management companies. But market risks are to be taken care of by investors themselves.