Oleksii Semeniuk: Ukraine has entered the global system of financial trust

Ukraine’s accession to the IOSCO MMoU is not a formal international recognition, but a practical tool for investor protection, cross-border investigations, and strengthening the confidence of international capital in the Ukrainian market.

Oleksii Semeniuk, Chairman of the National Securities and Stock Market Commission (NSSMC), writes about this in his column for Ukrinform, “Ukraine Has Entered the Global System of Financial Trust. What IOSCO Actually Gives Us.”

In July, the NSSMC officially joined the IOSCO Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information — the IOSCO MMoU. Today, 132 capital market regulators are part of this mechanism.

For Ukraine, this means the ability to interact directly with foreign regulators in cases where the trail of a transaction extends beyond the borders of a single country.

This includes, in particular, the ability to obtain information necessary to reconstruct transactions involving securities and derivatives: data on the movement of funds and assets through bank and brokerage accounts, their owners, transaction volumes, timing and prices, as well as information needed to identify the ultimate beneficial owners of legal entities.

“‘We don’t know because the money went abroad’ should no longer be the final point. This is one of the main changes,” Oleksii Semeniuk emphasizes.

The mechanism works both ways. Foreign regulators can also turn to the NSSMC if, during their investigations, the trail of a transaction leads to Ukraine. Following its accession to the MMoU, the NSSMC has already received the first practical requests from foreign counterparts and has begun the relevant work.

At the same time, the information exchanged between regulators remains confidential and may be used only for the enforcement and investigative purposes specified in the request.

Ukraine had been working toward joining the IOSCO MMoU for almost ten years. A political Resolution alone was not enough: the state had to demonstrate that the regulator had the necessary legal powers, could obtain information about transactions, identify owners and beneficial owners, collect documents and explanations, share data with foreign counterparts, and guarantee its confidentiality.
A key milestone was the adoption of Law No. 3585-IX, which updated the system of state regulation of capital markets and significantly expanded the powers of the NSSMC.

According to the NSSMC’s Chairman, the significance of this step goes far beyond the work of the regulator itself. For Ukrainian investors, it provides an additional level of protection; for businesses, clearer rules for interaction with international markets; and for the state, another element of the trust needed to attract private capital for Ukraine’s recovery.

“Post-war reconstruction cannot be financed solely through budget funds or assistance from partners. Ukraine needs private investment. And before bringing money into a country, a major investor assesses not only potential profitability. They look at whether the law works, whether property is protected, and whether the regulator is capable of acting together with colleagues from other jurisdictions,” Oleksii Semeniuk notes.

Joining the IOSCO MMoU will not create a capital market by itself and will not automatically bring billions in investment. But it establishes one of its key foundations — trust.

“We did not receive a medal. We received a tool. The NSSMC’s task now is to prove its effectiveness through practice: with every investigation, every investor protected, and every Ukrainian company that finds it easier to raise capital,” the Chairman of the NSSMC concludes.

Read Oleksii Semeniuk’s full column, “Ukraine Has Entered the Global System of Financial Trust. What IOSCO Actually Gives Us,” on the Ukrinform website: https://interfax.com.ua/news/blog/1193923.html