The National Bank of Ukraine has set the requirements for consumer credit mediation activities of credit intermediaries in line with the Law of Ukraine On Consumer Credit.
In accordance with the requirements set by the NBU, a credit intermediary shall:
- be a resident and have full civil capacity;
- have sufficient level of knowledge in consumer credit;
- have irreproachable business reputation; and
- meet the set requirements during the whole period of their activities . The bank with which a credit intermediary has entered into an agreement shall monitor the latter's compliance with the requirements set by the regulator.
If a credit intermediary meets all the requirements, he will have the right to engage in the provision of credit mediation services after the agency agreement is concluded and the information thereof is posted on the bank’s website.
“The requirements set by the NBU will oblige credit intermediaries to provide consumers of banking services with more complete information about banks, banking products, lending terms. They shall be liable to consumers for this. This move will promote the development of the consumer credit market and enhance its transparency in Ukraine, said NBU Deputy Governor Kateryna Rozhkova.
If a credit intermediary fails to meet the requirements set by the NBU, the bank should:
- terminate early an agency agreement with the credit intermediary;
- request the NBU to remove information about the credit intermediary from the registry; and
- cease to provide consumer loans with the involvement of this credit intermediary.
It should be mentioned that the bank that has entered into an agency agreement with the credit intermediary shall bear responsibility for violation by the latter of applicable laws and regulations. This requirement stems from the Law of Ukraine On Consumer Credit that strips the NBU of its mandate to apply enforcement measures against credit intermediaries for violation of laws on consumer credit.
However, the NBU shall maintain a register of bank credit intermediaries. The maintenance of the registry provides for:
- automatic entry or removal of information about the credit intermediary (In response to the notification file submitted by the bank, the NBU sends a confirmation receipt as to the entry or removal of information from the register);
- collection and record-keeping of information about the credit intermediary (name, address, telephone number, etc.) and the agency agreement (date of the agency agreement conclusion and number, effective date and expiry date of the agency agreement, names of the signatories, a list of credit mediation services, details about the credit intermediary).
The amendments to this effect are provided for by NBU Board Resolution No. 50 of 8 June 08.06.2017 On the Activities of Consumer Credit Intermediaries in the Banking Services Market, which shall come into force from 10 June 2017.
The Law of Ukraine 1734-VIII On Consumer Credit shall come into force from 10 June 2017.
This law establishes a legal framework for the activities of consumer credit intermediaries. This law aslo gives a mandate to the NBU to sets the requirements for bank credit intermediaries and their consumer Credit mediation activities.