The NSSMC introduces a procedure for monitoring the compliance of persons to the positions held in trade unions during the war instead of approval

The NSSMC (National Securities and Stock Market Commission) is taking another step in reducing regulatory influence in order to facilitate the activities of market participants. To this end, the NSSMC approved Resolution No. 1339 dated November 11, 2022, which introduces the procedure for monitoring the compliance of persons holding positions in professional participants of capital markets and organized commodity markets during the period of martial law and approves the relevant Procedure.

Specialists of trade union members operating in the capital markets and organized commodity markets do not need to undergo approval. In addition, during the period of martial law, the Commission will not apply the norm regarding the minimum number of certified specialists that must be in the licensee. Responsibility for the fact that the specialist has the appropriate qualifications, business reputation and absence of conflict of interests, as well as the quality of the personnel in general, rests with the head of the trade union member.

Also, temporarily, the regulator will not require compliance with the norms of the Procedure for approving candidacies of stock exchange managers and requirements for such managers during their tenure.

The NSSMC reserves the right to monitor compliance with the positions and requirements of only a limited list of officials during the wartime:

⁃ chairman and members of the supervisory board or other body responsible for supervision;

⁃ chairman and members of the collegial executive body;

⁃ a person exercising the powers of a sole executive body and his deputies.

It is important that citizens of the Russian Federation and the Republic of Belarus cannot be appointed to these positions. The exception is residence in Ukraine on legal grounds.

Persons appointed to the specified positions, after Resolution No. 1339 enters into force, must perform actions in accordance with the requirements of the Procedure and within the time limits established by it.

We would like to draw your attention to the fact that the previous NSSMC`s Resolution No. 1272 of October 27, 2022 has become invalid.