The Impact of the Establishment of a Compensation Fund for the Protection of Investors on the Construction Industry of Russia
The article considers the problem of house-buying by Russian citizens on the basis of the equity participation agreement in conditions of market volatility and bankruptcy of the building companies. The author studies insurance mechanisms of equity participation agreements and their negative features. The article analyzes the statistical data about the constructed residential objects, their area, unfinished building objects and cases of bankruptcy of construction companies. The author considers the policy of the Government of the Russian Federation regarding the insurance of developers’ obligations - the creation of a state compensation fund. The article describes some functions of the fund, conditions for joining it, as well as its weaknesses. The author elaborates on expected changes as a result of creation and full functioning of the compensation fund. This paper introduces possible solutions to the problem