The NSSMC approved new Corporate Governance Standards for professional participants

At the meeting on October 21, 2021, the NSSMC (National Securities and Stock Market Commission) approved a number of drafts on Corporate Governance Standards for professional participants of the capital markets and organized commodity markets.

The NSSMC has developed five drafts of standards for the effective, understandable implementation and functionong of the corporate governance system for professional participants.

One of the standards establishes the basic concepts and terminology used in the corporate governance process of the professional participants. Each of the following four applies to those professional participants whose scope is defined in the name of the standard itself. In particular, it regulates the issue depending on the type of participant and the specifics of its activities. Please be reminded that previously it was a single document, which was shared to all types of professional participants.

It is planned that the standards number three and five will apply to a professional participant from the date of publication of information about its inclusion in the list of the systemically important professional participants, which is approved by the Resolution of the NSSMC

With regard to the banks, according to the Law of Ukraine On Accounting And Financial Reporting In Ukraine, which are the enterprises of social importance, but which do not belong to the systemically important professional participants of the capital markets, the approval of a separate standard is not currently provided.

The draft standards are posted on the official website of the NSSMC for the proposals and comments from the professional community and all interested parties:

– Standard №1 “Corporate governance of professional participants of the capital markets and organized commodity markets. Basic concepts and terms”;
– Standard №2 “Corporate governance of professional participants of capital markets and organized commodity markets. Organization and functioning of the internal control system of professional participants, which are the entities of public interest and are not the banks”;
– Standard №3 “Corporate governance of professional participants of capital markets and organized commodity markets. Organization and functioning of the internal control system of professional participants which are the systemically important professional participants and are not the banks”;
– Standard №4 “Corporate governance of professional participants of capital markets and organized commodity markets. Organization and functioning of the internal control system of professional participants, which do not belong to the enterprises of public interest and to the systemically important professional participants”;
– Standard №5 “Corporate governance of professional participants of capital markets and organized commodity markets. Organization and functioning of the internal control system of professional participants which are the systemically important professional participants and which are the banks”.