THE NSSMC Approves Changes to its Regulations to Protect Consumers of Financial Services

The National Securities and Stock Market Commission (hereinafter referred to as the NSSMC) has approved amendments to a number of its regulatory acts concerning the interaction of participants of the depository system of Ukraine and aimed at strengthening the protection of the rights of consumers of financial services.

Changes were made to the implementation of the Law of Ukraine “On Protection of Consumers of Financial Services” dated 20.09. 2019 №122-IX. The law established the definitions of “financial services consumer” and “client”, introduced requirements for disclosure by a financial institution of the terms and conditions of its activities, and specified the procedure and conditions for the conclusion of a financial services contract. In particular, in case of ambiguous interpretation of the rights and obligations of the consumer of financial services, such rights and obligations should be interpreted in favor of the consumer, and any terms of the contract that limit the rights of the client in comparison with the rights established by law shall be void.

The NSSMC has made the following changes to the following legal acts:

• Requirements to the agreement on servicing of securities account, approved by the NSSMC dated 06.08.2013 No. 1412;
• Requirements for the agreement on the provision of services for account servicing in securities of the nominal holder, approved by the NSSMC’s Resolution dated 13.12.2018 No. 866;
• Requirements to the agreement on servicing of issues of securities between the issuer and the Central Depository, approved by the NSSMC’s Resolution dayed 06.08.2013 №1413;
• Requirements for the depository agreement between the depository institution and the Central Securities Depository, approved by the NSSMC on 06.08.2013 No. 1410;
• Requirements to the agreement on the provision of the register of holders of registered securities, approved by the NSSMC dated 15.08.2013 No. 1518;
• Requirements to the agreement on clearing of securities based on the results of clearing, approved by the NSSMC dated 20.08.2013 №1524;
• Requirements to the agreement on conducting clearing of payments based on the results of the clearing, approved by the NSSMC Resolution dated  15.08.2013 No. 1525;
• Requirements for the Clearing Institution Agreement and the Settlement Center Maintenance Agreement, approved by the NSSNC’S Resolution dated  15.08.2013 No. 1526;
• Requirements for the clearing agreement and settlement of securities transactions (on the provision of clearing services), approved by the NSSMC dated 20.08.2013 No. 1527.

The document is sent for state registration to the Ministry of Justice of Ukraine.