The new standards and rules: the NSSMC approved the License Provisions for the Asset Management Activity of Institutional Investors

The NSSMC approved the License Provisions for the Professional Activity in the Capital Markets –  Asset Management Activity of Institutional Investors, at its regular meeting.

In general, the document provides:

– a number of requirements that should be met by an applicant for obtaining a license, as well as by the a licensee conducting the asset management activity of institutional investors;

– the initial capital requirements for legal entities intending to carry out such activity;

– the list of necessary documents to be submitted to the NSSMC.

“The NSSMC, together with market representatives and government agencies, has prepared rules and standards for market entry and operation for such activity as asset management of institutional investors. We are convinced that the new license provisions are not just another change for market “entry”, but also another step towards the progressive development of this segment,” Yurii Boiko, the Commissioner, said.

So, the licensees are obliged to perform following actions within six months from the date of entry into force of this Resolution:

– to bring their internal documents in accordance with the license provisions;

– to bring the ownership structure in compliance with the requirements, but if there is a foreign legal or natural entity(ies) in the ownership structure of such an entity – foreigners – within one year.

It should be noted that after the adoption of this document, the following Resolutions of the NSSMC are not valid:

– On Approval of License Provisions for Conducting Professional Activity in the Stock Market (Securities Market) – Asset Management Activity of Institutional Investors (Asset Management Activity) №1281 dated July 23, 2013, registered with the Ministry of Justice of Ukraine on September 12, 2013 under №1576/24108 (as amended);

– On Approval of License Provisions for Conducting Professional Activity in the Securities Market – Activity Related to the Mortgage Collateral Management №235 dated February 7, 2012, registered with the Ministry of Justice of Ukraine on February 28, 2012 under №328/20641 (as amended).

The Resolution has been submitted for state registration to the Ministry of Justice of Ukraine.