Financial standards and prudential indicators for new financial institutions have been established

The National Securities and Stock Market Commission (NSSMC) announces that changes in the Regulation on Prudential Standards of Professional Activity in the Stock Market and Requirements for the Risk Management System have come into force, approved by its Resolution №333 as of 25.06.2020.

The Resolution was registered in the Ministry of Justice of Ukraine on 13.07.2020 №652/34935 and comes into force from the date of its official publication in the “Official Bulletin of Ukraine” on 24.07.2020.

The changes to this Resolution establish requirements for compliance with mandatory financial standards and indicators by managers of real estate funds (REF) and construction financing funds (CFF) when carrying out activities to attracting finance of property management founders to building project financing and/or conducting real estate transactions, as well as administrators of private pension funds.

In particular, the following financial standards and indicators have been set for the managers of REF and CFF:

 – mobilisation ratio;

 – liquid funds ratio;

 – required solvency;

 – size of reserve fund.

It is proposed to set the following prudential indicators for NPF administrators:

 – capital adequacy ratio;

 – coverage ratio of operational risk.

Please note that the items on statutory meaning of prudential indicators come into force on January 1, 2021.

The document was developed to meet the requirements of the Law of Ukraine dated 12.09.2019 №79-IX “On Amendments to Certain Legislative Acts of Ukraine on Improving the Functions of State Regulation of Financial Services Markets”, which empowers the NSSMC to regulate the activities of new professional participants in the securities market.

All changes and innovations concerning regulation of new types of professional activities in the securities market are published on the official website of the NSSMC and discussed with participants.