International cooperation

The IFC, a member of the World Bank Group, is an international organization whose mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives.

In January 2020, Cooperation Agreement was signed between the NSSMC and the Ukrainian Corporate Governance Academy (“UCGA”) and the IFC. The purpose of this Agreement is to promote good corporate governance, including governance of environmental and social matters (”ESG”) in Ukraine, as well as realization of the process of drafting of the Core Corporate Governance Code of Ukraine with ESG provisions – a set of recommended corporate governance practices for listed companies on the stock exchange in Ukraine.

As a result of joint work on March 2020, the Code of Corporate Governance (“Code”), its key requirements and recommendations were approved by the NSSMC`s Resolution №118. The Code uses the best world’s practices and developments in corporate governance. It complies with Corporate Governance Guidelines of the Organization for Economic Co-operation and Development (OECD), current Ukrainian legislation and generally accepted standards of ethical conduct.

In August 2020, the NSSMC and the IFC signed a Cooperation Agreement on developing sustainable finance capital market in Ukraine. According to the existing Cooperation Agreement, one of the IFC’s tasks is to support the NSSMC’s cooperation with the Sustainable Banking Network (SBN), acting as a coordination center in the country for all SBN-related activities. The SBN is a voluntary community of financial sector regulatory agencies and banking associations from emerging markets. The purpose of the activity is to improve environmental, social and corporate governance in banking sector and development of the financial market. In July 2020, the NSSMC officially joined the SBN.

On July 7, 2021, the Resolution of the NSSMC №493 “On Approval of Recommendations on Implementation or Financing of Environmental Projects by Issuing Green Bonds” adopted Recommendations on Implementation or Financing of Environmental Projects by Issuing Green Bonds.

In 2020, the NSSMC has been working with  following projects of the international technical assistance:

1. Project “Implementation of the EU practice in accounting, financial reporting and auditing in Ukraine” (EU-FAAR)

EU-FAAR is the EU-funded project that will last until January 9, 2023, providing targeted EU support to strengthen reforms in the areas of accounting, auditing and financial reporting.

The expected results of the Project and its purpose are to increase transparency and improve the business climate by facilitating: obtaining more reliable and standardized data of corporate financial statements, which have been audited by competent auditors;  developing rules for submitting financial statements and conducting audits for businesses of various types and sizes;  EU recognition of the audit oversight regime in Ukraine;  disclosure of standardized financial statements in electronic format by all business entities required by law.

2. European Union Technical Assistance Project “Strengthening the Regulation and Supervision of the Non-Banking Financial Sector” (EU-FINREG)

The aim of the Project is to create a strong environment for non-banking financial services, to assist the Ukrainian authorities in approximating the legal framework and methods of supervision for securities and investment transactions, insurance, pensions, non-banking credit institutions, non-banking payment institutions and other non-banking financial services to European and international standards and practices.

The term of the Project implementation and expansion of its scope was extended to 16.01.2023 with the inclusion of additional actions that were not directly provided for in the current task, but are relevant to achieving the goals and results of the project,.

3. The Financial Sector Transformation in Ukraine (FST), funded by the US Government through the United States Agency for International Development (USAID)

The aim of the Project is to increase confidence in the financial sector, improve citizens’ understanding and increase the level of use of financial services;  to transform the regulatory environment of the non-banking financial sector;  increase access to finance for small and medium enterprises;  expand access to financial services and promote more active use of digital financial solutions;  maintain the balance and stability of the pension system.

The implementation of the FST Project has been extended until August 27, 2021 according to the Protocol on Cooperation between the NSSMC and the USAID/FST Project implemented by DAI Global LLC, signed on November 18, 2020.

The Technical Assistance and Information Exchange Tool (TAIEX) is an instrument of the Directorate General for Enlargement of the European Commission. TAIEX helps countries in the process of approximation, application and implementation of EU legislation.

The main tasks of TAIEX are:
• provision of short-term technical assistance and advice on the implementation of EU legislation in the national legislation of the beneficiary countries and on the appropriate management, implementation and implementation of such legislation.
• technical training and preliminary assistance to partners and stakeholders of beneficiary countries;
• Information mediation, which involves the collection of information and its availability;
• Providing database tools to simplify and monitor progress in the approximation and definition of technical assistance needs.

The use of external assistance of the European Commission in the framework of TAIEX in Ukraine is carried out in accordance with the Procedure for preparation and implementation of the plan for attracting external assistance of the European Commission within the framework of TAIEX, approved by the Cabinet of Ministers of Ukraine from April 9, 2008, No. 316.

In accordance with the above Procedure, the Ukrainian part of the Committee on cooperation between Ukraine and the European Communities twice a year considers and approves the Plan for attracting external assistance of the European Commission within the framework of TAIEX.

The TAIEX tool provides the following services:
– providing experts to beneficiary countries as advisers on the drafting of legislative and interpretative acquis communautaire;
– Study visits enabling civil servants from the beneficiary country to study the Member State’s experience in addressing practical issues related to the implementation and enforcement of the acquis communautaire and interaction with stakeholders;
– Organizing and conducting seminars and workshops to present and explain aspects of the acquis communautaire to a wider audience.

The official website of the Center for Adaptation of the Civil Service to the standards of the European Union hosts and constantly updates the news related to the use of the European Commission’s external assistance within the framework of TAIEX in Ukraine.