The National Bank of Ukraine, the National Securities and Stock Market Commission, and the National Commission for the State Regulation of Financial Services Markets addressed a joint letter to the Verkhovna Rada of Ukraine about the necessity to adopt Draft Law No. 2413A On Amendments to Certain Laws of Ukraine On the Consolidation of Functions of the State Regulation of Financial Markets.

Andriy Parubiy,

Chairman of the Verkhovna Rada of Ukraine

Volodymyr Groysman,

Prime Minister of Ukraine

Ihor Rainin,

Head of the Presidential Administration of Ukraine

Leaders of parliamentary factions in the Verkhovna Rada of Ukraine

Artur Gerasimov

Maksym Burbak

Oleh Bereziuk

Yuriy Boiko

Oleksandr Vilkul

Oleh Liashko

Yulia Tymoshenko 

Yaroslav Moskalenko

Vitaliy Khomutynnik

Viktor Bondar

Mykhailo Dovbenko,

First Deputy Head of the Committee on Financial Policy and Banking

Iryna Lutsenko,

Representative of the President in the Verkhovna Rada of Ukraine

Oleksandr Saienko,

Minister of the Cabinet of Ministers of Ukraine

Oksana Markarova,

Acting Minister of Finance

On Draft Law No. 2413A

Dear Mr Parubiy,

Dear Mr Groysman,

Dear Mr Rainin,

On behalf of the financial market regulators, particularly, the National Bank of Ukraine (hereinafter – the NBU), the National Securities and Stock Market Commission (hereinafter – the Securities Commission), and the National Commission for the State Regulation of Financial Services Markets (hereinafter – the Financial Services Commission), we would like to express our respect for you and address you with the following.

Transformation and strengthening of institutional capacity of the financial market regulators is an integral part of the Memorandum on economic and financial policy within the framework of the International Monetary Fund’s program as well as one of the key measures of the Comprehensive Program for the Development of Ukraine’s Financial Sector until 2020, approved by the National Reforms Council on 15 May 2015 and approved by NBU Board Resolution No. 391 dated 18 June 2015 (as amended), decision No. 931 of the Securities Commission dated 30 June 2015 (as amended), ordinance No. 1367 of the Financial Services Commission dated 11 June 2015 year (as amended).

Ensuring and supporting the proper effective regulation of financial services by regulatory authorities is also included in the EU-Ukraine Association Agreement.

On 7 July 2016, the Verkhovna Rada of Ukraine adopted in the first reading the Draft Law No. 2413A On Amendments to Certain Laws of Ukraine On the Consolidation of Functions of the State Regulation of Financial Markets (hereinafter – the Draft Law) which was submitted as a legislative initiative by the President of Ukraine.

The aim of the Draft Law is to raise the quality standards of the financial market regulation in accordance with the EU standards, to improve the business environment with the simultaneous increase of responsibility of the market participants to consumers of financial services and decrease of the number of regulatory and controlling authorities through distribution of functions of the Financial Services Commission between the NBU and the Securities Commission.

The NBU and the Securities Commission made preparations for implementation of the Draft Law and developed a detailed schedule of transferring the functions from the Financial Services Commission to the NBU and the Securities Commission.

On 2 October 2018, the Committee on Financial Policy and Banking of the Verkhovna Rada of Ukraine took a decision to recommend that Verkhovna Rada of Ukraine adopt in the second reading and as a whole the Draft Law prepared by the said Committee for the second reading with participation of representatives of the financial regulators, professional communities of the financial market participants, and the World Bank.

Considering the above, we address you with a request to support inclusion of the Draft Law into agenda of the next plenary week of the parliament and its further adoption taking into account the systemic importance of the draft law for the country’s financial system development and Ukraine’s commitment to fulfil its international obligations.

Sincerely yours,

Kateryna Rozhkova, Acting Governor, National Bank of Ukraine

Timur Khromaiev, Chair of the National Securities and Stock Market Commission

Ihor Pashko, Chair of the National Commission for the State Regulation of Financial Services Markets