Ruslan Magomedov: Individual investment accounts will attract 5 million new investors

The NSSMC continues to work on creating modern investment instruments to attract citizens’ funds to the development of the economy, ensure market transparency, and stimulate long-term investments.

Ruslan Magomedov, Chairman of the Commission, spoke about this work during the panel discussion “Financial System of Ukraine 2.0” at the 11th Kyiv International Economic Forum (KIEF):

“Everything in the economy comes down to mathematics — money is where there is income. Today, people have about UAH 1 trillion “on hand.” This is our internal resource, which could work for the economy, create jobs, and finance businesses. But there are no attractive instruments on the securities market. Our task is to create conditions so that businesses can raise funds without excessive costs and people can invest on equal terms with the OVDPs (domestic government bonds).”

That is exactly why the Commission initiated the launch of individual investment accounts (IIAs). This is not just a financial product — it is a new standard for attracting capital.

“This instrument will allow citizens to invest money in specific securities and receive tax breaks: if funds are not withdrawn within five years, all income can be withdrawn without taxes. This encourages investment not only in the OVDPs, but also in real business, attracting “long-term” money into the economy,” explained Ruslan Magomedov.

Also, with the help of IIAs opens up a new instrument — shares of state-owned companies. Citizens will be able to buy stock in PrivatBank, Naftogaz, Ukrenergo, and others. The Commission is currently actively discussing at the government level the sale of 7% of such companies.

“We have already prepared a draft law and are holding discussions with the Government to make this tool profitable and simple. Through investment firms licensed by the NSSMC, every citizen will be able to open an IIA online, without paperwork, even via the Diia portal. This is especially relevant for those who are currently on the front lines or in regions without access to bank offices. We expect the country to gain about 5 million new investors — military personnel, entrepreneurs, IT specialists, teachers, and doctors,” added the Commission’s Chairman.

In the long term, this will also open up new opportunities for the pension system, in addition to investments in the OVDPs.

“Pension reform must be carried out in a cautious way: the main task of pension money is to preserve its purchasing power and minimize risks. First of all, IIAs will enable citizens to invest and create a market for shares (of both state-owned and private companies). As a result, some shares will begin to be traded in a more stable way, while other shares less stably. And based on this trading history, it will be possible to determine which securities are safer to invest pension fund money in. Therefore, in the first place we are launching investment accounts and digital solutions, and we will connect pension money to the market a little later,” concluded Ruslan Magomedov.