The NSSMC developed draft Standards of corporate governance for professional market participants

NSSMC (National Securities and Stock Market Commission) at a meeting on April 20, 2021 approved the draft Standards of corporate governance in professional participants of capital markets and organized commodity markets.

The draft consists of six sections, in which the following provisions are prescribed:

– distribution of professional participants by type,

– requirements for the formation and functioning of the body responsible for supervision;

– the notion of “collective suitability of a body” was introduced;

– requirements to internal control system and peculiarities of functioning of its subdivisions: compliance, risk management, internal audit;

– qualification and other requirements for persons ensuring the functioning of the internal control system, in particular, requirements for business reputation,

– requirements for determining the identified personnel of a professional participant, namely persons whose activities have a significant impact on the risk profile.

In addition, there are provisions for establishing the remuneration of the professional participant’s personnel and the peculiarities of its definition for different categories of identified personnel. These peculiarities of payment of remuneration by shares or rights to shares, the procedure for disclosure by professional participant of information on remuneration, etc.

The document was developed taking into account the provisions of the Law of Ukraine “On Capital Markets and Organized Commodity Markets”, introduced by the Law №738-IX, and provides for the implementation of a number of Directives and Regulations of the European Union.

The draft is available on the NSSMC’s official website at https://www.nssmc.gov.ua/document/?id=12120845.