But the first reason is no longer relevant â€” and it has even become a reason to be a notary. Since banking rules do not have a specific provision on the type of fiduciary account, it is still considered a special account when the holder is the bank; what happens in the event of insolvency is not clear. The fees of a Russian notary acting as an agent in a notarial share transfer is limited by Russian law and amount to only RUB 1,500 (about EUR 20). These fees are significantly lower than those of Russian banks that provide fiduciary services. For certain transactions such as real estate, the fiduciary intermediary may open a trust account on which funds are deposited. Cash is traditionally the capital that people entrust to a trustee. But today, any asset that has value can be put into trust, including shares, bonds, deeds, mortgages, patents or an examination. In the case of quality transactions, for example, buyers and sellers generally agree with the bank (which acts as a trustee) to open a specific bank account with the National Bank of Bulgaria and that not all funds operating there should be considered an asset of the bank. The first positive change occurred in July 2017, when Russian banks were allowed to act as fiduciary agents and open special trust accounts. However, fiduciary accounts have not become very popular due to the high bank fees and the complex and formalistic approach of Russian banks. In principle, from June 2018, anyone can act as an agent, not only the funds, but also other types of property (. B for example, documents, titles, etc.) can be filed with an agent.
In this context, special rules have been introduced for Russian notaries who act as trustees, making them a logical and preferred choice for Russian stock market transactions. The agreement on the terms of payment as well as on possible holdback amounts for warranty rights has always been problematic in Russian stock exchange transactions due to the absence of the trust mechanism internationally recognized in Russian law. In this context, the parties found themselves in a win-win situation and attempted to minimize any risk of transaction by using letters of credit, legal collateral or structuring the transaction under foreign law. Until now, notaries were generally used as agents mainly for real estate transactions in which the buyer was a business (and in rare cases a natural person) who bought real estate at a purchase price of up to 500,000 euros. For higher-value transactions, the parties preferred to cooperate with a bank because: (i) the bank was most likely not to go bankrupt (i.e., the funds in the escrow account would not be in trouble) and (ii) the parties felt that it would be easier to obtain compensation from a bank than from a notary in the event of damages suffered by the failure of the fiduciary intermediary.