The calculation of credit concentration: the NSSMC amends the Procedure On the Compiling And Disclosure Of Information By AMC

The NSSMC (National Securities and Stock Market Commission) has developed the amendments to the Regulation on the Procedure On the Compiling And Disclosure Of Information By Asset Management Companies and Persons, Who Manage the Assets Of Non-State Pension Funds.

The key to the draft is that the information on the calculation of the mandatory prudential indicator – the concentration ratio of credit should now be added to the pond standards certificate, which should be submitted by the companies.

 “The NSSMC updated the indicators for measuring and assessing the risks of all professional participants in capital markets and organized commodity markets, and this was implemented in most regulatory acts. In particular, the concentration ratio credit establishes the certain limitations of the manager’s credit risk, which may arise as a result of non-fulfillment of its obligations by its individual counterparty. This will increase the level of responsibility of the market participants and will serve to protect the investors’ interests”, said Iraklii Baramiia, the Commissioner of the NSSMC.

Otherwise, the NSSMC brings the Provisions of the Regulation in line with the Requirements of the Law of Ukraine “On Capital Markets And Organized Commodity Markets”.

The Commissioners approved the draft decision at a meeting on November 11, 2021. The document was published on the official website of the NSSMC for comments and suggestions from all interested parties.