For Non-State Pension Fund Administrators – НКЦПФР|НАЦІОНАЛЬНА КОМІСІЯ З ЦІННИХ ПАПЕРІВ ТА ФОНДОВОГО РИНКУ

The activity of administering non-state pension funds is a professional activity of a stock market participant – the administrator of a non-state pension fund – carried out by it for remuneration on its own behalf and on the basis of a relevant agreement with the non-state pension fund.

The administrator acts on behalf of a pension fund and in the interests of its participants. The administrator keeps personalized records of participants in non-state pension funds, which involves maintaining individual pension accounts for fund participants.

The administrator of a pension fund is liable for its obligations to pension funds with which it has concluded administration agreements with all property owned by it.

Compensation for losses caused by the administrator is paid from its reserve fund, and if the reserve fund is insufficient, from other property of the administrator.

The procedure for forming and requirements for placing reserve fund assets are determined by the National Securities and Stock Market Commission.

The administrator does not have the right to transfer its obligations to pension funds to other entities.

To carry out professional activities of administering non-state pension funds, a legal entity is required to obtain the appropriate license in accordance with the established procedure. A list of documents required for obtaining a license, the procedure for its issuance and revocation are defined by the National Securities and Stock Market Commission.

Combining pension fund administration activities with other types of activities is prohibited, except for professional activities in capital markets, namely asset management activities for institutional investors – asset management activities.

Provision of services for the administration of non-state pension funds can only be combined with asset management activities, in accordance with the requirements established by the Law of Ukraine “On Non-State Pension Provision.”

The administrator of a non-state pension fund can be:

a legal entity that provides professional services for the administration of non-state pension funds (professional administrator);
a legal entity – the sole founder of a corporate pension fund that has decided to administer such a fund independently;
an asset management company.

The sole founder of a corporate pension fund that independently administers such a fund does not have the right to manage pension fund assets unless this founder is an asset management company.

The administrator provides services to a pension fund on the basis of a pension fund administration agreement, which is concluded with the board of the pension fund in writing.

The custodian cannot be the founder of the administrators of those pension funds with whose boards it has concluded agreements on the servicing of pension funds.

A professional administrator, established as a joint-stock company, has the right to issue only registered ordinary shares.

The charter of a professional administrator cannot provide for it to engage in any other activities except those specified in the Law of Ukraine “On Non-State Pension Provision.”

The administrator keeps personalized records of participants in non-state pension funds, which involves maintaining individual pension accounts for fund participants.

The asset liquidity ratio is used to measure and assess the risks of professional activities in capital markets and organized commodity markets.

The normative value of the asset liquidity ratio provided for in paragraph 2 of the Resolution No. 1221 dated 29 September 2022 “On Prudential Ratios for Professional Activities in Capital Markets and Organized Commodity Markets” is as follows:

starting 01 January 2023 – no less than 0.1;

starting 01 March 2023 – no less than 0.3;

starting 01 October 2023 – no less than 0.5.

A significant deviation from the calculated value of the asset liquidity ratio is a deviation that is 5 percent or more from its normative value.