Reform of the stock market specialists certification system is in action

Already from September 1, 2021 about 3200 specialists, who are carrying out professional activity on the stock market and activities in the system of accumulative pension provision, will be certified in a new way. This is stipulated by the Regulation approved by the Resolution of the National Securities and Stock Market Commission (NSSMC) № 319 dated June 25, 2020 and published on September 22.

This Regulation on the Procedure of Certification of Stock Market Specialists is the result of three years work of the NSSMC, the USAID Project “Transformation of the financial sector in Ukraine” and the CFA Society Ukraine Association. These parties signed a Memorandum on Intent to Cooperate in Development of Transparent Certification System of Stock Market Specialists and Asset Managers in Ukraine, based on an independent assessment of candidates in accordance with international best practices.

“Much things has changed over the past three years. Firstly, this is so-called Split Law in the result of which now the NSSMC is responsible for certifying property management professionals to finance construction and administration of private pension funds. Secondly, the adoption of the Law on facilitation of involvement of  investment and the introduction of new financial instruments, which is the new “constitution” of capital markets”, – Julia Vitka, Deputy Head of the USAID Project “Transformation of the financial sector in Ukraine” comments. “That is why professional market participants, their clients and society in general are in dire need of the new exam standards laid down in the Regulations.”

Among the novelties of the Regulation is the cancellation of compulsory education in one of the institutions with which the NSSMC concluded cooperation agreements on the certification of specialists.  This should help create a competitive environment among educational institutions, because now people who want to pass the certification will be able to prepare themselves or choose one of the institutions.

“Another important novelty of the Regulation is the introduction of computer testing as an effective and transparent form of knowledge testing, which will also automate the collection, processing and storage of information on the results of qualifying exams,” Maxim Libanov, Commissioner, said.  “Of course, computer exams will not surprise anyone now, but we hope that the software and hardware used for exams and further processing of information will be the most modern, secure and allow the processing of large amounts of data.”

“But, of course, the software and hardware complex is just a functionality that will help pass the exams,” Oleksiy Sobolev, president of the Association of Investment Professionals CFA Society Ukraine, continues. – The main thing is the content of what will be checked, what will be the issues and tasks.  And we are very pleased that finally one of the modules that will be mandatory for all professionals will be ethics, ie checking the mastery of the ethical aspects of the stock market and the rules of ethics.  After all, not only knowledge of the law, practical skills and abilities, but also professional ethics should be tested, because good and ethical behavior increases trust among all participants in financial markets, and this, in turn, feeds their growth.”

New exams will begin in less than a year, and the final stage of reforming the stock market certification system should be the NSSMC’s determination of a methodological center or centers responsible for developing and maintaining a database of test tasks and software and hardware, and a number of certification centers to perform certification of specialists.