The new licensing terms for investment firms

Last week, the National Securities and the Stock Market Commission (NSSMC) published new licensing terms regarding the activities of investment firms (Resolution №208 dated February 21, 2024).

The new operating conditions for investment firms have been developed and approved to align the conduct of professional activities in trading financial instruments with the requirements of legislation, including the Law of Ukraine On Capital Markets and Organized Commodity Markets. Additionally, these conditions aim to implement European Union legislation as part of Ukraine’s Eurointegration efforts.

“This is a new document in which the Commission has attempted to strike a balance between the requirements of European regulation and the relevance and ability to implement these norms by the domestic market, taking into account its current state. The next important component in the process of regulating the activities of investment firms will be the adoption in the near future of updated operating rules and requirements for contracts,” noted Commissionук Yaroslav Shliakhov.

The Commission emphasizes that the alignment with the new conditions will occur gradually. Investment firms are required to:

• Bring their ownership structure into compliance with the requirements of the Licensing Terms within 12 or 18 months (in certain cases for some investment firms) from the date following the entry into force of this Resolution.
• Submit the relevant documents and information to the NSSMC through official channels no later than the last day of the 12th or 18th month (in certain cases for some investment firms) from the date following the entry into force of this Resolution.

The Resolution can be reviewed on the Commission’s official website via the following link.