Investment protection: the NSSMC approves real estate management activities to finance real estate transactions

At its meeting on February 22, 2022, the NSSMC approved the Licensing Conditions for Professional Activities in Capital Markets – Property Management Activities for Financing Construction and / or Real Estate Transactions.

«With this document, we have set requirements for those who want to enter the market, and clear rules for working on it. First of all, we have settled the aspects of protection of the rights and interests of investors. It is important for us to provide adequate protection for investments in such a popular asset as real estate,» said Arsen Ilin, the Commissioner.

The license conditions cover the full range of issues related to property management activities to finance construction and / or real estate transactions, namely:

– the requirements to be met by the applicant for a license and the licensee during the property management activities;

– organizational and operational requirements;

– requirements for the initial, authorized and own capital of the applicant and the licensee;

– requirements for hardware and software;

– requirements for internal documents of the applicant / licensee;

– requirements for disclosure of information by the licensee;

– requirements for the applicant’s / licensee’s premises;

– requirements for employees of the applicant / licensee;

– list of documents submitted by the applicant for a license;

– information that the licensee submits to the NSSMC during the property management activities.

Licensees are obliged within six months from the date of entry into force of this resolution:

– bring their internal documents in line with the license conditions;

– bring the ownership structure in line with the requirements, but if the ownership structure of such a person includes foreign legal entities and / or natural persons – foreigners – within a year.

The NSSMC finalized the document taking into account the comments and suggestions received during the publication, and sent it for state registration to the Ministry of Justice of Ukraine.