Financial sector news

The National Bank of Ukraine held a meeting with representatives of financial companies, during which it presented updated requirements for the operation of this market segment, according to the NBU press service.

The regulator informed market participants in detail about changes in regulatory acts concerning:

• prudential requirements for financial companies;
  
• criteria for determining significant companies and the specifics of their regulation;
  
• authorization of financial service providers;
  
• restrictions on combining financial and other economic activities;
  
• requirements for corporate governance and internal control systems.

According to NBU representatives, the key updates include:

• companies that provide several types of financial services must meet the most stringent capital requirements. According to NBU estimates, this will affect about 9% of market participants;
  
• significance criteria will include the size of assets, off-balance sheet liabilities, the status of a responsible person in a financial group, risks to consumer rights, and participation in state programs;
  
• significant companies are required to develop and annually update an activity plan, as well as conduct a risk self-assessment;
  
• Enhanced checks on significant shareholders and managers will only apply to new persons, and checks on sources of capital will only apply to new transactions.

Restrictions on other activities will not apply, in particular, to income from property rental, sale of equipment by financial leasing companies, or management of collateral.

"These changes will take effect at the beginning of next year, but some of them will require additional time for implementation after that date. As a regulator, we are interested in the seamless adaptation of the market to the new rules, so we propose that relevant associations provide the NBU with a summary list of urgent issues, and we will prepare and publish consolidated explanations for the market," said Serhii Savchuk, Director of the NBU's Department of Methodology for Regulating Non-Bank Financial Institutions.