Approved by Ukrianian MPs in principal, “On Financial Service and Financial companies’ legislation is set to provide the terms defining types of financial service, regulate the relations between a financial service provider and a client ensuring customer rights of the latter. It will also regulate the principles of financial services’ operations and state supervision of the financial services’ industry.
The legislation defines two types – financial and associated – services:
Financial services take in insurance, consumer credits, loans, financial leasing, factoring, guarantee provision, currencies’ trade, financial pay service, capital market services, funded pension services. Pawnshops, credit unions, insurance companies and financial service businesses must apply for a state license.
Associated services include intermediary (agents and brokers) and assisting business (information, security and credit bureaus). These services will need to have a state registration and are less regulated compared to financial services.
The law applies four major supervision policies:
- Prudence requiring a minimum amount of assets set in the range of 1-10 million hryvnas depending on the type of a financial service).
- Control of money service business activities with National Bank of Ukraine supervising practices, operations and consumer rights’ polices.
- Adjustment measures that will enable National Bank of Ukraine to adjust policies in risk-scenarios for business activities.
- The regulation allows other economic activities beyond financial services to allow other business opportunities for companies.