Additional obligations under investment products for children

Opening a savings account or investment portfolio account for a minor client could be connected with additional requirements for his/her parents or legal guardians, stipulated by legal acts and regulations.

These requirements could be expressed either as an obligation, prior to effecting any transaction on the account of a minor client, to obtain from the state guardianship and trusteeship institution a permission for concluding such a transaction; or as a duty to advise the state guardianship and trusteeship institution of such transactions. Furthermore, transactions on the minor client’s account may have tax consequences that may result in the obligation to declare income, received by a minor client, and, in cases stipulated by legal acts and regulations, to pay income tax. The abovementioned requirements are not exhaustive and may differ depending on the permanent place of residence of a minor client. The parents or legal guardians of a minor must find out on their own all the specific requirements in relation to transactions on the minor client’s account, stipulated by respective legal acts.

This disclosure is provided for informational purposes only and should not be relied on for legal or tax advice.