Client:

Russian Federation Center for Capital Market Development (CCMD)
 

The Assignment:

In 1996, in the wake of several high profile disastrous pyramid investment scheme scandals, Russian President Boris Yeltsin created the Federal State-Public Foundation for the Protection of the Rights of Shareholders and Investors (Fund). The Fund’s charge was to register the defrauded Russian investors with the government to receive compensation; manage or sell the assets of unlicensed companies; and, represent the interests of defrauded shareholders before the courts and legislative and executive branches of power.

The PBN Company contracted with the CCMD in early 1999 to educate and inform Russian investors and shareholders of the Fund’s mission and to make them better and wiser investors in the future.
 

PBN’s Strategy:

Restoring consumer faith in Russia's capital markets and lending credibility to the Fund were major challenges. Through TV and radio programs, monthly information bulletins, a biweekly newspaper and other public education programs, we sought to educate consumers on how to distinguish between legal and illegal investment companies and to empower defrauded investors to receive compensation from the government compensation fund. We also conducted a capacity-building program so that the Fund would have the ongoing capability to communicate with all its key audiences, including Russian media, government, professional and consumer associations, defrauded shareholders, and securities market participants.
 

Results:

As a result of the public education campaign, the number of defrauded investors who applied for and received compensation rose dramatically. The telephone hotline alone, which operated over a period of 1.5 months, received 9,000 calls. The Fund’s image changed from an institution widely thought of as being ineffective to a credible, well-managed organization that is achieving its mission to serve the Russian public. The Fund also developed strong relationships with key Russian business and public interest media outlets, which continue to this day.
 

Our Work:

Press release, June 30, 1999. Read

Press release, June 15, 1999. Read

CCMD Newsletter, Issue 4, June 1999. Open (92 KB)

CCMD Newsletter, Issue 3, April-May 1999. Open (96 KB)

Media Announcement: Federal Public-State Foundation for the Protection of Investors' and Shareholders' Rights; New Web Site on the Internet - www.fedfond.ru, April 28, 1999. Read