A brokerage account, shares, bonds, fund units and assets held in a Russian individual investment account are generally part of a debtor’s bankruptcy estate. The tax status of an individual investment account does not by itself create immunity from enforcement. The debtor should disclose the account, portfolio, cash balance and pre-bankruptcy transactions.
Current as of 24 August 2026. Tax consequences of closing an individual investment account depend on its opening date, the applicable regime and deductions already used; there is no single “three-year rule” for every account.
Short answer
Securities and cash held by a broker are property of the debtor. Once the asset-realisation procedure begins, rights over estate property are exercised by the financial manager. Sales, transfers or concealment before the case may be reviewed.
Investment assets that are examined
| Asset | Key issue | Broker records |
|---|---|---|
| Cash | Balance, currency and unsettled trades | Broker report and cash statement |
| Shares and bonds | Quantity, restrictions and market value | Depository statement and broker report |
| Funds | Redemption or sale mechanism | Fund type and restrictions |
| Individual investment account | Underlying assets and tax regime | Opening date, deduction type and contributions |
| Foreign assets | Jurisdiction, access and restrictions | Foreign broker reports and title records |
Why the investment-account wrapper is not protection
Article 10.2-1 of the Russian Securities Market Law defines the individual investment account as a special internal-accounting arrangement for a client’s money, securities and other permitted assets. Its tax treatment does not turn those assets into exempt property.
Old and new IIS regimes
The Federal Tax Service distinguishes accounts opened on or before 31 December 2023 from new individual investment accounts opened from 2024. Tax conditions, minimum periods and termination consequences may differ. Before any realisation, identify the opening date, any conversion, deductions already claimed and potential tax restoration. Bankruptcy creates neither a tax exemption nor one universal holding period for every IIS.
What changes by stage
| Stage | Practical step | Main risk |
|---|---|---|
| Before filing | Collect reports and record the portfolio | Unexplained sale or transfer |
| After acceptance | Report changes and preserve records | Concealing transactions or new assets |
| Asset realisation | Act through the financial manager | Personal disposal of estate assets |
How the portfolio is included and sold
Accounts and assets
Market and restrictions
Manager’s procedure
Article 213.25 of Federal Law No. 127-FZ places property owned when bankruptcy and realisation are ordered, and property later identified or acquired, into the estate subject to statutory exceptions. Article 213.26 governs the terms and procedure of sale. Liquid exchange-traded securities require a current value and sale-cost analysis; illiquid or restricted assets may need a tailored procedure.
Can the debtor continue trading?
After asset realisation begins, rights over estate property are exercised by the financial manager. Personal transactions by the debtor involving estate assets may be void and create further adverse consequences. Instructions to the broker should be coordinated with the manager.
Transactions before bankruptcy
- sale materially away from the market price;
- transfer of proceeds to a relative or connected person;
- gift or transfer of securities without equivalent value;
- movement to another broker without disclosure;
- losses produced through coordinated trades;
- concealment of a foreign account or access credentials.
Such transactions are assessed under the relevant avoidance grounds and the actual evidence. A market loss or ordinary unprofitable sale does not by itself prove abuse where the decision has a credible market explanation and transparent settlement.
Documents to prepare
- agreements with brokers and asset managers;
- broker reports and depository statements for every account;
- the individual investment account opening date and claimed deductions;
- history of cash and securities transfers;
- records of restrictions, blocking and security interests;
- explanations for major pre-bankruptcy transactions.
Frequently asked questions
Can a small account be omitted?
No. The account and assets should be disclosed; any exclusion is decided through the statutory process.
Will all shares and bonds be sold?
They are generally treated as estate property. The result depends on ownership, value, restrictions and any court-approved exclusion.
Will tax benefits survive?
Not necessarily. The consequences depend on the account regime, duration, claimed deductions and transitional provisions.
At what price are securities sold?
Current value and the approved realisation procedure are relevant. Participants may object where valuation is disputed.
What about blocked foreign securities?
They must still be disclosed. Valuation and realisation depend on custody arrangements and applicable restrictions.
Official legal sources
- Official Legal Information Portal — Federal Laws No. 127-FZ and No. 39-FZ.
- Federal Tax Service: investment tax deductions.
- Bank of Russia: IIS data and 2026 context.
- Supreme Court personal-bankruptcy review of 18 June 2025.
Related guidance
- Asset realisation in Russian personal bankruptcy
- Transaction avoidance in Russian bankruptcy
- Russian personal bankruptcy legal assistance
Practical conclusion
A brokerage or individual investment account should be disclosed as carefully as bank accounts and real estate. The priorities are to record the portfolio, avoid personal transactions after realisation begins and assess the tax consequences of closing the account.
Do you have a brokerage or investment account?
At a paid initial consultation, we can review the assets, transactions, disclosure and tax consequences.
INITIAL CONSULTATIONA Brokerage Account Is Not a Separate Exempt Asset Class
| Asset | Evidence | Review |
|---|---|---|
| Cash | Broker statement | Balance and currency |
| Shares and funds | Depositary statement | Quantity and transferability |
| Bonds | Statement and issue terms | Value and payments |
| IIS | Agreement and opening date | Regime and deductions |
| Margin position | Statement and liabilities | Net result |
Freeze the evidence
Download formal reports before access changes.
Reconcile three sources
Broker, depositary and bank records should explain one another.
Report to the manager
List the account, securities, cash, unsettled trades and restrictions.
IIS Tax Treatment Does Not Create Enforcement Immunity
Article 213.25 of Federal Law No. 127-FZ generally brings the citizen’s property at realization and later-discovered property into the estate, subject to statutory exemptions. An IIS label therefore does not by itself exclude cash or securities. Early termination of an older IIS may require restoration of a previously used deduction and interest; newer accounts follow their applicable rules. Check the case stage and the financial manager’s authority before any instruction. A debtor’s personal disposal after bankruptcy recognition may be void. Practical review requires formal broker, depositary or operator statements, the agreement, transaction history, acquisition-cost evidence and tax-regime records rather than app screenshots. Cash, securities, a claim against an issuer and a digital right are different assets and must not be combined without reconciliation. Disclose domestic and foreign platforms fully to the financial manager and court, but never publish passwords, private keys or authentication codes. Valuation is date-specific and may change with the market. A transfer, sale or account closure shortly before filing does not automatically protect an asset and may require transaction review. Tax consequences, fees, transfer restrictions and actual realizability must be assessed separately. This guide provides a preparation route; the treatment of a particular asset depends on records and the court process.