The NSSMC approved changes to the procedure for licensing professional capital market participants

The National Securities and Stock Market Commission (NSSMC) has approved draft amendments to the Procedure for Issuing, Suspending and Revoking a License to Conduct Professional Activities in the Capital Markets.

The draft is designed to bring the regulatory act in line with the requirements:

• The Law of Ukraine on Administrative Procedure,
• The Law of Ukraine on Joint Stock Companies,
• the Law of Ukraine on Financial Services and Financial Companies.

Key innovations and changes in the document are related to the implementation of the Law of Ukraine on Administrative Procedure. In particular, the document proposes that in case of submission of an incomplete list of documents or submission in violation of the requirements specified in this document, the NSSMC shall inform the applicant that the application for a license or an application for revocation of a license is left without movement within three business days from the date of receipt of the package of documents and indicate the shortcomings.

The period for eliminating the deficiencies cannot be less than five business days. At the applicant’s request, the NSSMC may extend the deadline for eliminating the identified deficiencies.

Thus, if the deficiencies are eliminated within the established period, the application for issuance of a license or the application for revocation of a license shall be considered submitted on the day of its initial submission. And the term for consideration of documents is extended for the period of leaving the application for issuance of a license, application for revocation of a license without movement.

The document also provides for the possibility of the NSSMC to suspend consideration of an application for license revocation in cases provided for by this document. In this case, the review period is extended from the day when the circumstances that caused the suspension of the application cease to exist.

This draft was discussed with market representatives who were involved in the development of the document. The draft amendments are available on the NSSMC’s official website at the link.