OREANDA-NEWS. The National Bank of Ukraine welcomes Parliament’s adoption of Draft Law No.2413-а On Amendments to Certain Legal Acts of Ukraine on the Consolidation of the State Regulation of Financial Markets Functions.  A total of 235 MPs voted in favor of this bill.  

“The National Bank of Ukraine waited for this draft law to be passed for over a year and we are grateful to the MPs for upholding it today. This move represents an important and necessary step towards  the development of a transparent financial services market.  The NBU has the ability to exercise efficient supervision over both banking and non-banking financial services market.  Only the effective consolidated supervision will improve the protection of financial services consumers and enhance their confidence in the market,” said NBU Deputy Governor Vladyslav Rashkovan.

Mr Rashkovan said  that the draft law sets a   timeframe of 6 months  for the National Commission for the State Regulation of Financial Services Markets to devolve its functions to the central bank.

“A Task Force team consisting of NBU project managers are already involved in preparations for the redistribution of functions performed by the National Commission for the State Regulation of Financial Services Markets. The Task Force team is currently conducting a review of the key segments of the non-banking financial services market, such as insurance and leasing segments, credit unions as well as financial companies,” underlined Mr Rashkovan.

The draft law provides for the winding up of the National Commission for State Regulation of Financial Services Markets and  splitting its functions between the NBU and the National Securities and the Stock Market Commission.

Under these draft law, the NBU shall take over the supervision and regulation of insurance, leasing and factoring companies, credit unions, credit history bureaus, pawn-shops and other financial companies.   The regulation of non-state pension funds, construction financing funds and real estate investment funds shall rest with the National Securities and the Stock Market Commission.

The decision to devolve  the regulatory function in respect of non-banking financial institutions to the NBU will provide for the following:

-  cut the number of public regulatory authorities responsible for the supervision over the non-banking financial services market

-  clear the market of fraudulent market players

-  create an even and transparent playing field  for all market players 

- facilitate robust market development

-  make non-banking financial institutions more attractive to investors

-  reduce transaction costs for financial services consumers

- enhance the protection of financial services consumers.