The capital market, including the banking sector, are in need of a strong Regulator: the results of the meeting between the NSSMC and the NABU

The NSSMC (National Securities and Stock Market Commission) and the NABU (National Anti-corruption Bureau of Ukraine) held a working meeting, where Regulator’s members and domestic bankers discussed significant issues of the market dynamics and its development. The main output of the discussion was the position to strengthen the commission’s capacity, in particular, by amending the Draft Law №5865.

“We are always open to dialogue with the market participants and we thank the NABU for the opportunity to discuss really important and painful issues with the Heads of systemically important banks. So, while have been discussing, we’ve found options to improve the rules for trading financial instruments, currency issues arising in the context of the admitting securities of foreign issuers to the Ukrainian market. This worries bankers, and we find solutions to these problems together,” Ruslan Magomedov, the Chairman of the NSSMC said.

Among the issues discussed is the need to improve the institutional capacity of the NSSMC and changes in the functionality of the Regulator.

“We see that capital markets are currently facing the lack of the “gray zones” regulation. At the same time, the upcoming launch of the second level of pension reform creates certain challenges and opportunities for the banks’ growth. In order to answer these questions and properly regulate the markets, the institutional and financial independence of the capital market Regulator, the NSSMC, is absolutely essential. Such strengthening of the NSSMC is possible by amending the Draft Law №5865 prior to its second reading. After all, the entire capital market in general and the banking segment in particular need a strong and independent Regulator,” Olena Korobkova, the Chairman of the NABU Council says.