The preciseness and clarity: the NSSMC finalized the license provisions of the NPF administration

The NSSMC (National Securities and Stock Market Commission) approved the finalized draft license provisions for conducting professional activity in the capital markets – the activity for the NPF administration (non-State pension funds) at its regular meeting, on February 3, 2022.

“We have prepared a high-quality document that takes into account the expertise of the Regulator’s specialists and the proposals of market representatives and government agencies. It is important for us that the rules on the market are respected, and the professional activity is effective and reliable at all stages,” Yurii Boiko, the Commissioner, said.

Therefore, the NPF administrators are obliged within six months from the date of entry into force of this Resolution:

– to bring its internal documents in accordance with these license provisions;

– to bring the ownership structure in compliance with the requirements, but if there is a foreign legal or natural entity(ies) in the ownership structure of such an entity – foreigners – within one year.

The initial capital requirements of at least 1.25 million UAH apply only to legal entities that intend to carry out the NPF administrative activity, and have submitted an application and relevant documents to the NCSSM for obtaining a license. The amount of the initial capital of the applicant to the bank must not be less than the minimum regulatory capital amount established for the banks.

It is also important that professional experience in the financial services markets, namely the NPF administration services, is equal to the professional experience in the capital markets.

The NSSMC developed the document in accordance with the Provisions of the Law of Ukraine On State Regulation of Capital Markets and Organized Commodity Markets and the Law of Ukraine On Capital Markets and Organized Commodity Markets, and finalized it taking into account the comments and proposals provided by the professional community and other government agencies.

The Draft has already been published on the official website, and its text can be found at the link.