Moscow Stock Exchange closed - net asset values suspended
Among the unit-links offered by HSBC Assurances Vie (France) in its life insurance and capitalisation contracts, some are representative of funds invested in assets whose quotation has been suspended due to the closure of the Moscow Stock Exchange.
The valuation of the following funds has been suspended:
- HSBC GIF Russia Equity A (ISIN code: LU0329931090)
- HSBC GIF Russia Equity E (ISIN code: LU0329931256)
For these unit-links, no valuation has been published since 25 February 2022.
As a result, it's no longer possible to invest in these funds (through payments or switches) or to disinvest them (through switches or termination by surrender or death). As a result, the funds concerned have been temporarily withdrawn from the financial offering of the contracts since 4 March 2022. This withdrawal will continue until the funds are valued again.
For each of our policyholders and subscribers who have contracts involving these funds, alternative solutions have been put in place to protect their interests as best as possible, and a dedicated communication will be sent to them.
The following solutions have been implemented:
- The part of the scheduled payments that should have been invested in one of the non-valued funds is invested in the contract's euro fund. This solution will apply as long as the policyholder or subscriber has not requested a change.
- The portion of partial surrenders, which should have disinvested one of the non-valued funds, will be allocated to the other funds disinvested by the surrender, and the last net asset value of the non-valued fund will be used to calculate the tax base only. This solution will apply as long as valuations have not resumed. Once valuations have resumed, the initial allocation of the partial surrender will apply once again.
- The part of the switches that should have been disinvested or invested in one of the non-valued funds will be excluded from the switch and the total amount of the switch will be revised accordingly. Switches that should have been disinvested or invested only in one of the non-valued funds will be cancelled.
Total surrenders and terminations in the event of death are subject to specific discussions with the customers / beneficiaries concerned in order to implement the solution best adapted to their situation.
The policyholders concerned will be notified of the implementation of these measures on their contracts and will be able to request the modification or suspension of future operations.
If further measures should be taken, this communication will be updated as soon as possible. Your advisor and HSBC Assurances Vie (France) will be available to answer any questions you may have.
New European regulatory requirements for events in Ukraine
The European Union has introduced new regulatory requirements[@council-regulation] relating to events in Ukraine which prohibit financial institutions allowing investment in euro-denominated securities issued after 12 April 2022 or in units of collective investment undertakings providing exposure to such securities by:
- any Russian or Belarusian national who is not resident in a European Union country, a member of the European Economic Area, Monaco or Switzerland
- any person residing in Russia or Belarus who is not a national of the European Union, the European Economic Area, Monaco or Switzerland
People concerned by this measure can no longer invest or make switches in life insurance.