10 Facts About How the NSSMC Protects Investors

When a person invests their money, they want to be sure that the rules are the same for everyone, companies operate honestly, and fraudsters will not be able to take advantage of someone else’s trust without consequences.

This is exactly why the National Securities and Stock Market Commission (NSSMC) exists. Its work is not limited to issuing licenses or developing new rules. Every day, the NSSMC works to ensure that capital markets are transparent and that investors’ rights are reliably protected.

Here are 10 facts that will help to better understand how this works in practice.

1. The NSSMC does not allow random companies onto the market

Before a company receives a license for professional activity in the capital markets, the NSSMC checks its capital, the business reputation of its managers and owners, the qualifications of its specialists, and its readiness to work according to established rules. This helps to filter out at the very beginning those who do not meet the requirements of the legislation.

2. A license is only the beginning

Obtaining a license is not enough. After that, professional market participants regularly report to the NSSMC, while the regulator exercises continuous supervision over their activities. This makes it possible to identify risks in a timely manner and respond before they can affect investors.

3. The NSSMC helps create rules that work in the interests of investors

The NSSMC analyzes draft Laws concerning capital markets and provides its professional opinions. Its task is to help formulate rules that simultaneously protect investors, ensure fair competition, and promote market development.

4. The NSSMC openly warns about fraudulent investment projects

The regulator regularly identifies and publishes a list of dubious investment projects, and also explains the signs by which they can be recognized. This helps people check a company before they invest their money.

5. An investor has the right to know all important information

The NSSMC establishes requirements for the disclosure of information by issuers and professional market participants. Companies must openly disclose information about their financial condition, performance, and risks. Transparent information is what helps investors make informed decisions.

6. The NSSMC works to make investing safer not only in the stock market

The regulator participates in developing mechanisms to protect people who invest in housing construction. In particular, it supports the introduction of a construction guarantee fund and financing mechanisms through escrow accounts, which are intended to make this market more transparent and safer for investors.

7. The NSSMC protects Ukrainians’ future pension savings

Non-state pension funds operate according to clear rules established by the NSSMC. Reporting and disclosure requirements help fund participants understand how their pension savings are managed.

8. The NSSMC is implementing European investor protection standards

Ukraine is gradually harmonizing its legislation with the Law of the European Union. The NSSMC is working on updating the Corporate Governance Code in accordance with OECD principles, preparing modern regulation of the virtual assets market based on the European MiCA regulation, and participating in the implementation of Ukraine’s commitments on the path to EU membership. This makes the Ukrainian market more understandable and predictable for investors.

9. The NSSMC cooperates with leading international organizations and regulators

The NSSMC cooperates with the International Organization of Securities Commissions (IOSCO), the Organisation for Economic Co-operation and Development (OECD), the World Bank, the International Monetary Fund, as well as with national regulators of other countries, in particular the German BaFin and the Spanish CNMV.

Such cooperation helps implement international supervisory standards, exchange experience and information, and also increases the confidence of international investors in the Ukrainian capital market.

10. The NSSMC helps develop a modern capital market

Reliable investor protection is impossible without the development of the market itself. That is why the NSSMC is working on new financial instruments, including covered bonds and securitization, and also supports initiatives that expand opportunities for businesses to raise capital and for citizens to invest their savings over the long term and safely.

Why this matters

Investor protection begins long before a problem arises. It begins with fair rules, transparent information, continuous supervision, and timely response to violations.

This is exactly what the NSSMC works on every day. Because the more people trust the Ukrainian capital market, the more investment the economy receives. And this means new opportunities for business development, job creation, and the post-war recovery of Ukraine.