European integration of investment funds: the NSSMC presents new draft law to market participants

As part of the process of implementing European standards into Ukrainian legislation, the National Securities and Stock Market Commission (NSSMC) has developed and presented to market participants a new draft Law of Ukraine on Investment Funds.

What does the draft law provide for?
– Establishing a legal framework for the operation of investment funds in line with EU standards,
– introduction of new categories of funds: public (UCITS) and alternative (AIF),
– establishing rules for venture, social and long-term funds,
– a transitional period for the transformation of existing collective investment institutions to European standards.

«We held the first meeting with market representatives and the investment business association, where we presented our developments and vision of changing the paradigm of investment funds in Ukraine. The draft law is focused on European standards that will be adapted into national legislation. The NSSMC is open to dialogue with all stakeholders to prepare a quality document that will help improve business performance and serve as a quality basis for investment development», said Maksym Libanov, Commissioner.

The transitional provisions stipulate, among other things, that the Law will come into force on 1 January 2027, and the NSSMC will have to bring its regulations into line within six months. The Law of Ukraine on Collective Investment Institutions will expire in three years. However, this timeline is currently conditional, as everything depends on the Resolution of the Verkhovna Rada.

A brief overview of the draft law is available here.