One of the main elements of state regulation of the securities market is the control over the activity of professional participants of the securities market. Carrying out on-site inspections is one of the measures of realization of the tasks of the NSSMC in accordance with the Law of Ukraine “On State Regulation of the Securities Market in Ukraine”.
In accordance with generally accepted IOSCO principles, the securities market regulator should have the power to inspect, investigate and supervise the market. The regulatory system should provide for effective and fair methods of inspection, investigation and surveillance.
The control function of the NSSMC is to:
- promote compliance with legal requirements;
- to prevent offenses (abuses) in the securities market;
- to ensure the rights and interests of investors, other participants of the stock market;
- identify trends and risks of the stock market.
Currently, the control function of the NCSSMC is carried out in accordance with the requirements of the Law of Ukraine “On the basic principles of state supervision (control) in economic activity sphere”.
The NSSMC is monitored by professional stock market participants through, in particular, on-site scheduled and unscheduled inspections.
- identify problematic issues in the activities of professional stock market participants that increase the risks and may lead to securities market offenses;
- to formulate proposals to improve the legislation.
In order to prevent offenses, the Commission will implement:
- conducting periodic interviews with senior management of individual professional participants in the stock market regarding the business practices and measures taken to manage the risks;
- holding conferences / seminars with a wide range of securities market participants;
- promulgation of recommendations for action and implementation of practical measures to help improve compliance.