OREANDA-NEWS. «These amendments are intended to streamline an approval procedure to be followed by the regulator to approve candidates for management positions at banks, optimize a review of documents, and shift away from a perfunctory approach toward a more profound approach to the licensing of banking operations by the NBU,” said NBU Deputy Governor Ms Kateryna Rozhkova. “The NBU will make further efforts to streamline a regulatory framework to strike a balance between the formal requirements for documents and the proper and efficient exercise of registration and licensing functions”.

The main changes include the following:

·         The NBU has reduced requirements for documents submitted to the NBU for the approval of bank managers. The regulator has repealed the requirement for candidates for management positions at banks to submit a notification certificate (a certificate issued by the Ukrainian Educational Credential Assessment Authorities  after  going through the procedure of recognition of foreign educational credentials).  At the same time, in exceptional cases when it is impossible to establish professional qualifications or verify the official status of an educational institution and the authenticity of the educational credentials, the NBU shall retain the right to require that potential candidates submit such certificates.

·         The NBU has repealed the requirement to submit certain documents proving business reputaion for candidates with long-term senior managerial experience in financial regulators, central and commercial banks of the OECD member countries, international financial institutions, as well as CEOs of Subsidiary banks of foreign banking institutions.  Instead, a bank shall submit assurances that a candidate meets the requirements for business reputation.

·         Candidates for the positions of Chairmen of the Management Board at banks shall not undergo testing.  Such candidates will be interviewed by the NBU Board to determine whether they can qualify for the job and meet the requirements for business reputation.

·         The NBU has  granted banks the option to apply to the central bank in advance  to assess business reputation and professional qualifications (prior to the appointment or the selection of a potential candidate. This will enable a bank to promptly replace its management team in М&A deals,  as well as in case when a bank needs to verify whether a potential candidate meets the eligibility requirements set by the NBU. A decision on the preliminary approval shall remain valid for six months. An appointment to a senior management position  within this period will not require the re-approval of candidacy by the NBU.

·         From now on, the NBU shall not approve candidates for the  positions of acting senior managers at banks. Only other senior managers that have previously secured the NBU’s approval  confirming that their business reputation and professional qualifications meet the eligibility requirements set by the regulator shall assume the duties of acting senior managers. Other persons shall not perform the duties of the Chair of the Management Board and Chief Accountant for longer than three consecutive months, and those of other senior managers – for longer than six months (including in cases when persons that have assumed these duties have been replaced)

·         The NBU has extended the list of grounds under which the re-approval of the previously approved senior manager is not required (in cases when this person has changed positions within the same bank).

·         Following recommendations provided by IMF experts, the NBU shall apply a more flexible approach to assessing business reputation of bank managers and qualifying shareholders in banks by taking into account all the available aggregate information about these persons. When the NBU has a proof of the lack of impeccable business reputation, except in cases clearly specified by law, any decisions on whether to approve or reject candidate shall be made on a collegiate basis  by the Committee on Banking Supervision and Regulation, Payment System Monitoring (Oversight).

·         The regulator has simplified requirements for documents issued by foreign states that cannot be authenticated through a standard procedure (notarization, apostle certification and consular certification). If for reasons beyond control a standard procedure for authenticating documents cannot be executed,  an applicant can file a petition to request that the NBU accept documents in their original form.  A decision on whether to accept or reject a request shall be taken depending on the type of a document and the sufficiency of reasoning.

·         The NBU shall have the right to suspend a review of documents  for the term of 30 days  for additional fact-finding.

·         Banks shall be required to ensure accessibility of services rendered under a banking license for people with disabilities and people with limited mobility.

·         The provision of the Law of Ukraine  On Joint Stock Companies  setting out a new procedure for  replacing a member of the Supervisory Board – a shareholder representative – has been implemented.