By KYIV. Nov 16 (Interfax-Ukraine) – The National Bank of Ukraine (NBU) has developed a regulation on the procedure for supervision on a consolidated basis of nonbank financial groups, regulating, in particular, the activities of controllers and group participants, as well as persons who intend to become them.
As reported on the regulator’s website, the regulations establish the procedure for identification, recognition and de-recognition of a nonbank financial group, requirements for the responsible person of the group and the procedure for its approval by the National Bank, requirements for the group’s ownership structure and corporate governance systems, internal control and risk management. In addition, standards have been established for compliance with prudential requirements, preparation and presentation of reports and the necessary information of the NBU, an updated composition and updated forms of consolidated and sub-consolidated reporting of the group.
To fulfill its powers, the National Bank, in particular, applies, if necessary, to the National Securities and the Stock Market Commission, public authorities and local governments, other legal entities and individuals, and foreign supervisory authorities.
For violation of the requirements of the regulations, the National Bank has the right to apply sanctions to the group and its participants, as well as responsible persons, in accordance with current legislation.
The regulation will come into force on January 1, 2024. At the same time, a six-month transition period will be provided for market participants to bring their activities into compliance with the new requirements until July 1, 2024.
Comments and proposals for the project will be accepted until December 11, 2023.
As reported, as of November 2023, 19 nonbank financial groups are operating in Ukraine.
