The NSSMC clarifies: What mitigations apply to license conditions for asset management activities of institutional investors during the period of martial law

The National Securities and Stock Market Commission (NSSMC) clarifies which provisions of the license conditions for conducting asset management activities for institutional investors do not apply during the period of martial law in Ukraine.

In order to minimize the negative impact of the consequences of the military aggression of the russian federation against Ukraine and to promote the stability of capital markets, the NSSMC adopted a Resolution on Monitoring the Compliance of Persons with Positions in Professional Participants of Capital Markets and Organized Commodity Markets during the Period of Martial Law (No. 1339 dated 11.11.2022).

The NSSMC has established that the rules of the license conditions for conducting professional activities in the capital markets and organized commodity markets for its individual types are temporarily not applied with respect to

– the required number of certified specialists of the licensee;

– availability of certificates for the right to perform actions related to the direct performance of professional activities;

– availability of a qualification certificate of a specialist in accounting for professional participants,

– the term for which a person acting as a director may be appointed.

However, the head of a professional participant (except for banks) must ensure that employees performing actions related to the direct performance of professional activities have the appropriate qualifications, business reputation and no conflict of interest.

In addition, the norms of regulatory legal acts on corporate governance standards in professional participants do not apply in terms of the availability of certificates for the right to perform professional activities.

Importantly, these rules apply not only to licensees, but also to applicants, including companies that intend to obtain a license to conduct professional activities in the capital markets.

The NSSMC also provided the UAIB (Ukrainian Association of Investment Business) with the relevant explanation for distribution among its members.