January 2024: NSSMC stops maintaining the State Register of Financial Institutions

The NSSMC (National Securities and Stock Market Commission) informs that on January 1, 2024, it will cease to maintain the State Register of Financial Institutions due to the expiration of the Law of Ukraine on Financial Services and State Regulation of Financial Services Markets.

At the beginning of 2024, the new Law of Ukraine on Financial Services and Financial Companies came into force, which, among other things, provides a new definition of the concept of «financial institution» and establishes a new list of types of financial services.

Thus, a financial institution is a legal entity whose purpose is to provide financial services and which, in accordance with the law, provides one or more financial services on the basis of a license issued by the regulator.

Regulators in the financial services market, including the National Bank of Ukraine and the NSSMC, must maintain a register (list) of financial or support services providers, information from which is made public in accordance with the procedure established by the regulations of the relevant regulator.

The Law establishes the types of financial services and their characteristics, namely

– insurance;

– provision of funds and banking metals on credit;

– attraction of funds and banking metals to be returned;

– financial leasing

– factoring;

– issuance of guarantees;

– trading in currency values;

– financial payment services;

– financial services provided within the framework of professional activities in the capital markets provided for in part two of Article 41 of the Law of Ukraine on Capital Markets and Organized Commodity Markets.

The provision of financial services not included in the above list is prohibited.

Thus, the register (list) of financial or support services providers, the creation and maintenance of which is required by the Law, for the NSSMC is a list of financial services providers provided within the framework of professional activities in the capital markets. This is an integral part of the register of professional participants of capital markets and organized commodity markets, which is maintained by the NSSMC in accordance with the Law of Ukraine on State Regulation of Capital Markets and Organized Commodity Markets.

Please note that since the beginning of January 2024, non-state pension funds and corporate investment funds have lost the status of financial institutions, and the activities they carry out are no longer classified as financial services.