NSSMC on the Law on Financial Services and Financial Companies 5065: welcome unification of regulation and strengthening of regulators

The Verkhovna Rada adopted in the second reading and in general the Law оn Financial Services and Financial Companies (№ 5065). The corresponding resolution was supported by 248 deputies at the sitting.

«This draft law is valuable for its complexity and unification of approaches to regulating all segments of the financial market – banks, financial institutions, capital market participants, pawnshops. This is a story about a single government policy in terms of key principles and principles of the financial services market. We thank Mr. Danylo Hetmantsev and other parliamentarians for their joint work and voting», said Maksym Libanov, Сommissioner.

Among the norms of the law are proportional requirements for the minimum capital and the same approach and introduction of supervision of market behavior, simplification of the procedure for acquiring or increasing significant participation and market access for financial companies. The provisions of the draft law also refer to improving the quality of corporate governance, preventing violations and protecting the rights and interests of investors.

«The NSSMC welcomes the fact that our developments and proposals are reflected in the final version of the law. It is about introducing the possibility of a «regulatory sandbox»– a test environment for innovative companies with limited scope to protect their customers. It is also very important for us that the regulator will set requirements for the IT security of market participants. After all, this will help protect not only information but also the clients of financial companies», – added Mr. Libanov.

Summing up, the Сommissioner emphasized: «The main thing in the law 5065 is a single approach to the regulation of the whole sector and strengthening the regulatory function without pressure on the market. We hope that the parliamentarians will continue this tactic when voting for the bill 5865 on state regulation of capital markets and organized commodity markets.»