Amendments to the banking and financial law in November-December 2021



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NBU suggests public debate on new requirements for support and auxiliary service providers in the leasing market

the Regulation on the Rationalization of the Provision of Auxiliary Services in the Leasing Market will resolve these issues. Among others, the following requirements will be discussed:

  • impeccable reputation of the company as well as a sufficient level of knowledge on leasing, the legislation on the protection of the rights of consumers of financial services and the protection of personal data;
  • the training of support service providers and the improvement of their knowledge through training on leasing, legislation on the protection of the rights of consumers of financial services and the protection of personal data organized by the lessor;
  • disclosure of information on providers of support and auxiliary services on the websites of donors;
  • definition of ancillary services, etc.

NBU approved changes to the procedure for issuing licenses to legal persons for the provision of collection services to banks

The changes include:

  • the authority of the National Bank Board to issue licenses for the provision of collection services to banks, granting approval for cash handling and storage operations;
  • the staff of the legal entity acting as the applicant must include a chief accountant who meets the requirements of reputation and professional suitability;
  • the requirements of professional competence and irreproachable commercial reputation of the head of the cash handling and storage service;
  • the list of offenses leading to the annulment by the National Bank of the decision to approve the handling and storage of cash by the legal person is extended.

RESOLUTION # 115 | RESOLUTION # 120

From November 26, Visa and Mastercard cut national interbank commission rates in Ukraine to 1.2%

The development has become possible thanks to the Antimonopoly Committee of Ukraine which authorized on November 11, 2021 to Mastercard and Visa for concerted actions, namely to reduce the size of the national interbank commission rates.

NBU raises policy rate from 0.5% to 9% per year

The key rate is set on the basis of a macroeconomic forecast accompanied by a comprehensive analysis of monetary and financial developments prepared by the National Bank. The decision to raise the rate aims to level the impact of additional pro-inflation risks, improve inflation expectations and ensure a steady reduction in inflation to 5%.

NBU updated its approaches to consolidated supervision of non-bank financial groups (NBFG)

New features include:

  • the procedure for identifying, recognizing, terminating the recognition of NBFGs whose predominant activity is carried out by financial institutions and which are governed and supervised by the NBU;
  • the requirements relating to the ownership structure of NBFGs, clear control criteria (indicators) and conditions for their application are defined, in addition, the process for clarifying the scope of consolidation of NBFGs at the initiative of the regulator is specified;
  • the criteria for determining subgroups in NBFGs and their types and the classification of groups by volume of assets;
  • the obligation for NBFG officials to calculate the group’s regulatory capital adequacy on the basis of the consolidated annual reports and such other reports and additional information in accordance with the updated algorithm;
  • an annual submission of information on significant intragroup transactions by NBFG officials, for this purpose a “materiality threshold” for such transactions is set and the frequency of this information provision is provided for depending on the size of the group’s assets at the request of the regulator.

RESOLUTION # 128

The NBU has completed the list of capital cushions that banks must create to increase their capacity to resist risks in times of financial and economic instability: Conservation, counter-cyclical and systemic importance includes a systemic risk cushion to mitigate non-cyclical systemic risks.

To control the formation of capital buffers by banks within the established amount, the term “combined capital buffer” has been introduced, which will be defined as the total amount of capital buffers set for the bank.

RESOLUTION # 131

Clear criteria for recognizing a person as an accredited investor have been established

New laws on the simplification of the attraction of investments and the introduction of new financial instruments have been drawn up by the National Commission for Securities and Stock Markets. They entered into force on December 10, 2021.

Thus, the Commission has established clear criteria for recognizing a person as a qualified investor, namely:

  • criteria for foreign financial institutions to be recognized as qualified investors;
  • the recognition criteria for transactions involving financial instruments concluded during the last four quarters to recognize a person as an accredited investor;
  • the method of calculating own funds for the purposes of recognizing a person as an accredited investor, etc.

The Commission has also drawn up rules for the conduct of capital market surveys, which provide for:

  • the procedure for obtaining consent to transfer inside information to a potential investor;
  • responsibilities of the respondent;
  • the procedure for transmitting information on capital market surveys and keeping records;
  • the amount of information disclosed, etc.

The Regulation on the procedure for monetary settlement of transactions in securities and other financial instruments concluded on organized capital markets and outside organized capital markets in accordance with the principle of “delivery against payment” (DVP) has been approved by the NBU d ‘Ukraine

The Regulations specify:

  • requirements for entities providing cash settlements for transactions in securities markets and other financial instruments in accordance with the DVP;
  • the procedure for carrying out cash settlements in accordance with the DVP through reflection in the accounting system of the person carrying out the clearing activities, changes in rights and obligations with regard to funds with the reflection of the transfer of claims, including the termination of obligations in view of the compensation of results;
  • the procedure for the cash settlement of transactions in securities and other financial instruments in accordance with the DVP using the technologies of the National Bank’s electronic payment system (EPS);

the procedure for making available to the Central Access Depository the payment service technology using specific EPS media.

RESOLUTION # 130

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