Commission updates importance criteria of enterprises

The National Securities and Stock Market Commission approved new criteria for determining which companies are important to the Ukrainian economy. This is necessary so that businesses can reserve their employees from mobilization under transparent and fair rules.

The Resolution of the Cabinet of Ministers of Ukraine No. 76 is currently in effect, requiring any business to meet three criteria (for example, having no outstanding tax or unified social tax liabilities, maintaining a certain level of wages, etc.). If a company fails to meet even one of these criteria, it loses its right to make a reservation. If everything is in order, the relevant authority then evaluates the company based on its industry-specific criteria.

The Commission is developing these rules for the capital markets. Four major changes are added to the existing rules, which have been in effect since last year.

The first concerns security. Previously, the Commission denied reservations only to companies whose owners included Russians or Belarusians. Now the rules became stricter. A company will not be able to obtain critical status if its ownership structure includes residents of any “risk zone” countries that support aggression, or sanctioned individuals.

The second update protects key market players — the so-called “systemically important professional participants.” These are the largest companies on whose operations the stability of the entire financial sector directly depends.

The third update concerns critical infrastructure facilities. Now, if a company is included on this list, the Commission has grounds to classify it as critical. Currently, there is only one such company within the Commission’s jurisdiction.

The fourth update eliminates confusion and overlapping authority among agencies. The Commission’s new rules do not apply at all to banks and financial institutions regulated by the National Bank of Ukraine. This closes a loophole whereby a bank, after being denied by the NBU, could attempt to submit documents to the Commission.

The draft rules will be published on the Commission’s website in the near future for public comment. Market participants and experts will be able to submit their suggestions. Once all feedback is reviewed, the final text will be approved and submitted to the Ministry of Justice for registration.