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For public discussion
Version 2
COMPREHENSIVE PROGRAM
OF FINANCIAL MARKET DEVELOPMENT
OF UKRAINE UNTIL 2020
Contents
І. Objective Preconditions of the Need to Conduct Reforms at Financial Market of Ukraine .................................................................................................................... 3
ІІ. Objective of the Program and Reform Directions .................................................................................................................................................................................. 7
III. Future Vision ....................................................................................................................................................................................................................................... 10
IV. Comprehensive Action Plan to Implement the Program ..................................................................................................................................................................... 14
V. Expected Results of Program Implementation ..................................................................................................................................................................................... 38
VІ. Regulatory Work Plan ......................................................................................................................................................................................................................... 42
VІI. Comparison of Program Measures with International and National Agreements and Programs ..................................................................................................... 66
Abbreviations:













National Bank of Ukraine – NBU
Ministry of Finance of Ukraine – MinFin
Ministry of Justice of Ukraine – MinJust
Deposit Guarantee Fund – DGF
National Commission on securities and stock market – NCSSM
National Commission on price regulation in financial services sector – NCPRFSS
Comprehensive Program of Financial Market Development of Ukraine until 2020 - the Program
International Monetary Fund – IMF
European Union – EU
European Bank for Reconstruction and Development – EBRD
Bank for International Settlements – BIS
International Organization of Securities Commissions – IOSCO
International Association of Insurance Supervision – IAIS
2
І. Objective Preconditions of the Need to Conduct Reforms at Financial Market of Ukraine
Prior to 2008, financial sector demonstrated dynamic development. Having passed through initial formation stage in 1991-2001, the Ukrainian financial
system became one of the most attractive financial markets of Eastern Europe in its period of economic growth in 2000s. Political changes in the country, as well as
attractive economic prospects resulted in an inflow of international investment and growth of Ukrainian financial system, banks, and world level financial groups.
Financial market development was discretionary and disproportionate in its nature. Accelerating growth rates were demonstrated by the banking system,
emission activity at the market of shares, corporate bonds, and securities of joint investment institutes were issued in ever increasing amounts. However, non-bank
financial market development in this period was complicated by the absence of effective legislation, regulation systems, and prudential supervision. This
situation created a real threat of "financial pyramids", held back financial services market development, and led to a deeper confidence crisis at financial market in
general.
Access to relatively cheap external resources, rapid growth in lending, including in foreign currency, and banks willing to increase their market shares led
to taking additional risks, and created imbalances. At the same time, weak credit standards of banks together with low financial awareness of households at the
backdrop of constant exchange rate of national currency against foreign currencies (FX) and the absence of restrictions on lending inFX resulted in the
situation when households undertook FX risks they were unable to manage.
Accumulation of imbalances has led to major losses in both economy and financial market of Ukraine during the global crisis of 2007-2009. Due to
depreciation of the hryvnia rate from 5 to more than 8 hryvnia per 1 USD, non-paid FX loans increased substantially, and bank capital decreased thus pressing
capital adequacy ratio. The banking sector faced liquidity problem: about 90% of banks suspended lending, and a ban on early withdrawal of deposits was
introduced. All of the above was accompanied by negative trends in the real economy: in 2009, real GDP fell by 15%, real disposable income of households – by
10%, and unemployment of working age population (in line with the ILO methodology) rose to 9.6%, the cost of real estate (in dollar terms) began to rapidly
decline. Under such conditions, profitability of the banking market deteriorated significantly, and losses of the banking system in 2009 amounted to 38.5 billion
USD. Over this period, general assets of non-banking financial market demonstrated a sizeable increase. Among the factors exercising a positive impact on nonbanking financial sector it is worth mentioning increase in assets of joint investment institutions and increase of the market value of financial instruments, in
particular those held by insurance companies and non-state pension funds.
Given the fact that the crisis of 2007-2009 convincingly proved the inability of micro-prudential regulation and supervision to
identify and influence systemic risks of the financial sector, the latest world trends in the regulation and supervision domains are, inter alia, to develop and
3
implement a macro-prudential policy.
Hence, one of the main issues today is the timely detection and effective management of systemic risks in financial sector. With this in mind, the main task of
financial sector regulators is, on the one hand, the establishment of institutional foundations for the development and implementation of a macroprudential policy, and on the other hand – the development and implementation of preventive measures aimed at minimizing risks of a systemic financial crisis.
Financial system in 2010-2013: average annual growth rate of bank loans accounted for 6% and deposits – 19%, while loans to non-banking financial institutions
demonstrated a markedly active development – the volume of loans extended by credit institutions during this period increased 2.2 times, by pawnbrokers – 2.6
times, and by financial companies – 18 times. Financial indicators of the banking market over the period were moderate, namely after three years of losses the
banking system became profitable only in 2012, but return on equity remained low. The non-bank financial market demonstrated dynamic recovery of assets
reaching 18% of the aggregate value of financial institutions assets. Total assets of non-bank financial institutions amounted to UAH 386, 6 billion by the end of
2013. However, this period in general is characterized by rapid foreign trade imbalance – foreign trade deficit in goods and services exceeded 44 against USD 27.5
billion during the previous four years. This laid the foundations for the mass-scale depreciation of hryvna in 2014.
New challenges faced the financial system in 2014. Internal and external shocks, as well as escalation of the conflict in the East of the country, negatively affected
economic development, brought down confidence levels, and led to imbalances of financial markets. Economic activity has shrunk. As a result of the national
currency depreciation and administrative prices increase, consumer price inflation accelerated in 2014. So, by the end of 2014, inflation was 25 percent per annum,
given that hryvnia lost nearly half of its value against the USD. These trends further deteriorated loan portfolio quality resulting in the need for significant reserves.
In 2014, allocations to bank reserves became the determining factor of losses in the banking system. The situation with problem arrears (bad debts) was further
aggravated by a number of restrictions, primarily, in the tax sphere and in legal procedures.
Banks of Ukraine have short open FX position that faces them with the FX risk. At the same time, clients of banks also experience increased FX risk. So, by end2014, the share of FX loans amounted to almost 50%. As a result of substantial hryvna devaluation, FX risk for clients having no FX income sources transforms into
a credit risk for banks. Again banks face liquidity problem. In 2014, outflow of deposits in national currency totaled USD 56.3 billion (13.3%), and in FX – USD
11.4 billion (37%). In 2014, outflow trend was a more protracted one compared to previous crisis.
Financial services market remains very fragmentated with low capitalization levels because of unstable business conditions, unprotected property
rights, and low level of corporate governance. Furthermore, financial services market development is hampered by the following:

inappropriate mechanism of protecting consumer and creditor rights;
4







low level of institutional investor development;
restricted financial instruments;
complicated restructuring procedures;
lack of confidence and knowledge of retail investors;
absence of proper prudential requirements and regulation at the non-financial services market;
inappropriate tax legislation;
restrictions in FX legislation.
Ukrainian economy today is also characterized by a high level of dollarization, cash payments, and interest rates resulting primarily from
inefficient and inconsistent state economic policy of previous years. Discrepancies between economic policy and actual economic situation in recent years led to
the accumulation of internal imbalances in all economic sectors. Budget support of inefficient industries, imbalanced energy sources pricing policy for HHs, keeping
artificially fixed exchange rate (ER) resulted in the loss of competitiveness for Ukrainian manufacturers, increase of current account
deficit, substantial fiscal deficit, and expansion of the public debt.
In order to achieve accelerated growth in the medium term, the country needs to decisively strengthen its macroeconomic and financial stability, adopt wide-ranging
and ambitious structural reforms in order to improve business climate, attract more investment, and enhance competitiveness of Ukraine. Implementation of effective
monetary and financial policy will help anchoring inflation expectations, whereas introduction of deep and comprehensive financial and economic reforms solving
deeply-rooted problems that have been hampering the country’s economic development prospects, would ensure the return of confidence to financial market, and
restore access of public and private sectors to capital markets. That would make Ukraine an attractive object for investment, and improve the prospects of the country
over the mid-term perspective.
5
Assets of financial market of Urkaine
Financial assets
Financial market
Deposit corporations 2
Non-banking financial market
Other financial
intermediaries3
Auxiliary financial
organizations 4
Insurance corporations and
non-state pension funds
(volumes, UAH billion)
2012
2013
20141
1 967,1 2 134,5 2 482,3
1 608,7 1 747,9 2 046,0
358,4
386,6
436,2
2008
1 464,1
1 267,9
196,2
2009
1 549,9
1 322,3
227,6
2010
1 737,6
1 468,9
268,7
2011
1 882,9
1 584,0
298,8
98,5
114,3
142,3
180,3
224,7
250,1
293,1
54,2
70,2
79,0
70,1
76,5
70,9
75,1
43,1
47,4
Structure,%
100,0
100,0
85,3
84,5
14,7
15,5
7,4
8,2
4,5
4,5
48,5
57,3
65,7
68,0
100,0
84,1
15,9
9,6
3,7
100,0
81,8
18,2
11,4
3,9
100,0
81,9
18,1
11,7
3,3
100,0
82,4
17,6
11,8
3,0
2,6
2,9
3,1
2,7
144,6
121,7
22,9
13,8
5,4
139,4
114,0
25,4
15,9
5,4
146,7
120,1
26,6
17,2
4,9
163,4
134,7
28,7
19,3
4,9
3,7
4,1
4,5
4,5
43,5
Financial market
Deposit corporations
Non-banking financial market
Other financial intermediaries
Auxiliary financial org.
Insurance corporations and
non-state pension funds
100,0
86,6
13,4
6,7
3,7
Financial market
Deposit corporations
Non-banking financial market
Other financial intermediaries
Auxiliary financial org.
Insurance corporations and
non-state pension funds
154,4
133,7
20,7
10,4
5,7
3,0
4,6
2,8
2,7
% to GDP
169,7
160,5
144,8
135,7
24,9
24,8
12,5
13,1
7,7
7,3
4,7
4,4
1 9 months of 2014
2 Including data of the NBU, other deposit corporations (banks).
3 Including data of the joint investment institutes (investment funds), credit unions, financial companies, and other financial intermediaries.
4 Including data of auxiliary financial organizations (stock exchanges, securities brokers, asset management companies, etc).
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ІІ. Objective of the Program and Reform Directions
Financial market is one of the most important market segments of interaction among various economic agents, and the result of financial market functioning is that
financial resources transform into actively working capital investment thus promoting sustainable economic development. Financial markets demonstrate
accumulation and redistribution of financial resources on the basis of balancing economic interests of all market participants in order to achieve capitalization
of financial resources and added value in economy.
The main objective of the Comprehensive Program of Financial Market Development until 2020 (hereinafter – the Program) is to ensure conditions for effective
functioning and development of financial market at the backdrop of a full-fledged competitive market environment in line with the EU standards. In future, through
attracting investment resources, this ensures sustainable economic development and helps Ukraine to integrate into the European financial space while
preserving internal integrity of Ukrainian financial market.
Accomplishing the Program objective is to be ensured through implementation of a number of interrelated actions aimed at a comprehensive reform of financial
market. The following basic principles are considered when drawing the list of actions:
-
The need to ensure macroeconomic stabilization and conduct in-depth structural reforms as the major precondition for financial markets development;
Liberalization of financial markets and euro-integration;
Ensuring balanced economic interests through formation of competitive environment;
Independent and efficient regulators, and supervision based on risk assessment;
Enhancing transparency and information disclosure standards by both regulators and market participants;
Enhancing greater efficiency in dealing with problem assets;
Liability to execute their undertakings and perform their respective functions by market participants;
Agreements among market participants and regulators;
Integrity through consolidation of markets and their infrastructure;
Effective right protection for creditors, consumers, and financial market investors.
To reach Program objectives, reforms are to be implemented along four basic directions and corresponding objectives:
Directions
Objectives
1. Monetary policy based on inflation targeting and
A. Ensuring macroeconomic stability
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Directions
B. Ensuring financial stability and
dynamic financial market
development
C. Development of institutional
potential of financial market
regulators
D. Protection of rights of financial
market consumers and investors
Objectives
flexible ER regime.
1. Aligning legislation to the EU standards.
2. Modernization of regulation and suprevision
systems.
3. Enhancing transparency and stability of financial
markets.
4. Freeing markets from problem assets.
5. Ensuring dynamic development of financial market
instruments and infrastructure.
6. Improving taxation system for financial markets
participants.
1. Ensuring institutional independence of regulators.
2. Enhancing organizational efficiency of regulators.
3. Improving coordination of regulators and financial
market participants.
4. Incentives to implement cutting-edge IT
technologies.
1. Incentives to develop financial literacy of consumers
and financial market investors.
2. Raising standards of protecting rights of consumers
and financial market investors.
Reforms are to be conducted in all segments of financial market: in the banking sector, the sector of non-bank financial institutions, the stock market and the capital
market sectors, etc. Reform effectiveness is to be achieved by conducting comprehensive changes:
- As regards financial market regulators, to strengthen institutional capacity of regulatory bodies and to create appropriate conditions to enhance regulatory
enforcement, strengthen stability of the country’s financial system, and to support its credit and investment potential;
- As regards financial market participants (with different forms of ownership), to ensure financial market infrastructure development on the basis of
balanced economic interests, confidence, and responsibility, to observe rights of financial services consumers, intermediaries, and the state, and to
formulate more competitive, transparent, and efficiently functioning financial market with effective regulatory enforcement mechanism that the state utilizes to
impact its terms of trade and institutional development.
8
The Program was developed in line with the Strategy for sustainable development "Ukraine-2020", Association Agreement between Ukraine and the European
Union, the Memorandum on cooperation with the International Monetary Fund, the Coalition Agreement among parliamentary factions “European Ukraine”, etc.
In order to achieve the objectives and implement the Program, as well as recognizing the importance of the effective system of rules and their practical
implementation in financial services sector so that to ensure sustainable economic development, cooperation programs are to be implemented in cooperation with
the institutions of the EU, the IMF, the World Bank, the EBRD, the EIB, the BIS, the IOSCO, the IAIS, and other international financial organization associations
and regulators in the domain of financial markets and services.
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III. Future Vision 5
In the process of implementing Program directions and objectives it is expected that preconditions for a stable economic development of Ukraine are set up by 2020,
and that financial market of Ukraine is transformed into a competitive environment with investment and innovative climate. It is also expected that financial market
starts to play a greater role in resources redistribution processes, whereas the financial status of financial market participants and their investment potential are
expanded.
A detailed future vision of Ukrainian financial market in 2020 is as follows:
Monetary policy focuses on maintaining price stability, and consumer inflation is below 5%, which also helps to reduce nominal and real interest rates on
deposits and credits (loans) in economy, and the level of average weighted rates on new credits (loans) in national currency to non-financial
corporations remains below 8% per annum (16.4% in 2014).
The National Bank adheres to flexible ER that reflects the relationship between supply and demand and helps to adjust trade balance, maintain
and increase international reserves levels. All of the above allows achieving reserves level of USD 38.7 billion.
During 2014-2019, the number of banks decreased, and the banking sector became more consolidated and demonstrates a diversified structure –
90% percent of the banking market is concentrated in 25-30 banks, there are no agencies at the market with the market share of more than 15%, and
Herfindahl-Hirschman concentration index on assets increased to 800. Banking system is characterized by high competitiveness, but is less fragmented than in
2014.
The banking system is sufficiently capitalized and is profit-making – capital adequacy ratio is above 8% according to Basel III principles, and
capital profitability is at least 10%. The NBU applies a progressive system of evaluating bank capital, and conducts assessment of development and capital (equity)
needs by both individual banks and the banking system in general.
State (public) banks mission is identified, as well as their activities and instruments, and the best management and operation practices from private sector are
directed to the state banks management, hence state banks efficiency increased, and the number of banks with state participation (state share) went down. State
5 Vision of the future financial market in Ukraine within the context of stock market in 2020 is in the works
10
banks shares are placed and traded at stock exchange.
Single EU rules on free movement (flow) of capital and risk management tools are implemented, relating to capital infows and outflows and mitigation of
potentially negative impacts of free capital movement (flow) onto economy. Conditions and mechanisms are set up to attract foreign institutional investors with long
and relatively cheap funds to domestic market. Meanwhile, liberalization of FX legislation and implementation of FX risk hedging mechanisms allowed to reduce
dollarization level of assets and liabilities of Ukrainian banks to levels below 40%, with a tendency to decrease further.
Formation of the interbank market indicators (benchmarks) system, and the use of various tools to bring actual interbank market interest rates to the rates set up by
the NBU monetary and credit policy, as well as implementation of an effective mechanism of local syndication allows for increase of borrowing levels in national
currency and to implement an effective and transparent system to manage structural liquidity of banks.
Introduction and development of compulsory and voluntary funded portion of accumulative pension system provisioning, implementation of tax mechanisms
stimulation for long-term investment assisted to set up a developed market for long-term bonds, and as a result to resume lending to Ukrainian economy and to
achieve the banking system assets level of UAH 2 500 billion.
Long-term investment to Ukrainian economy increased three-fold (from UAH 5 to 15 billion) through long-term insurer reserves on life insurance, whereas the
number of insurance companies decreased in 2014-2019, and insurance market became more consolidated. There are some 80 insurance companies with
insurance types different from life insurance, and some 20 life insurance companies, therefore, insurance penetration level rose from 0.7% to 7% of
GDP due to net premiums increase.
Agro-insurance became a significant trigger for insurance market development, as insured crops share increased from 1% to 12% of their total scope, and yet
another driver for insurance market was represented by active development of voluntary medical insurance with the number of insured rising from 1.2 million to
5 million.
In 2015-2019 growth level of deposits in the banking system twice exceeded the credit portfolio growth, thus the ratio of credits (loans) to deposits in the banking
system of Ukraine decreased by 39% compared to end-2014 (149%), reaching the level of 110%.
Introduction of creditor rights protection system, and changes in the legal and judicial systems, allowed to set up a mechanism of creditor rights protection,
resolve problem assets issue, standardize procedures of arrears enforcement debt and selling collaterized property and debtor bankruptcy (alienation procedures for
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collaterized property to the benefit of creditors take up under 3 months). Thus, during 2015-2020, the level of overdue arrears on loans dropped, and currently
remains below 5%.
Enhancing the role and functions of bank and non-banking financial institutions supervisory councils, implementing requirements on internal audit and controls in
banks and non-banking financial institutions, establishing the H7 norm for banks at the level of 15% of the bank regulatory capital, as well as enhancing
shareholders and bank management liability for financial performance results in the banks and non-banking financial institutions led to reduction
in risk concentration in the banking system, and to implementation of a sound corporate governance and internal controls mechanisms at financial market,
as well as to increase in the share of independent directors in the banking system of Ukraine.
Single State Register of credit histories was set up to consolidate information on the existing credit bureaus holding specific information on a particular economic
agent, and access was provided for credit bureaus to information in all open public registries. The above was also facilitated by definition of functions
for holders and administrators of single and State registries on providing credit bureau information from State registers.
Innovation stimulation mechanisms in the payments domain were implemented, the cost of non-cash payments went down, and increased cost of cash transactions
led to reduction in cash levels in economy to 15%, and to increase in non-cash payments in local payment system to at least 30%. Implementation of open
procedures and operation, and regulation principles for payment systems in Ukraine were also facilitative to the above.
Through comprehensive overhaul of financial sector supervision and active implementation of the IOSCO, IAIS, Basel III, and the EIOPA principles effective
macro- and micro-prudential supervision system based on assessment of existing and potential risks was formed (risk based supervision).
Through transformation of financial market regulators, and redistribution of functions and enhanced coordination among financial market regulators,
effective consolidated supervision over financial sector was implemented providing the potential to effectively diagnose and prevent the distribution of
risks across individual segments of financial sector, and to assess real and potential shock effects onto financial system in general and its components in particular.
Risk weighted assessment approach is used to money-laundering cases, and effective system of supervisory services is established (both within the country
and with foreign agencies) in accordance with the FATF recommendations and requirements. Consequently, efficient mechanisms and systems are in place to
counteract terrorist financing, including mechanisms to disclose new and more sophisticated fraud schemes, including in e-payments.
Necessary legal framework is in place to use cutting-edge technologies in the banking sector, including through the use of cloud-based technologies for data
12
storing and processing, and expanded methods of client identification, allowing to transfer a wide range of banking transactions to electronic sphere and to
streamline performance of such transactions.
Through implementation of standardized electronic XBRL format for data collection, transmission, and exchange of information for internal and
external users, single information data system was set up to accumulate statistical, financial, regulatory, and fiscal reporting. Consequently, reporting numbers are
reduced, and quality of data development and analysis is enhanced. Implementation of single standards of international reporting also supported the above
achievements.
Extension of administrative services and communications with banks, non-banking financial institutions and other state agencies are transferred into
electronic format through implementation of single standards for e-documents circulation.
Due to program implementation on enhancing consumer right protection, increasing the level of financial literacy, and by establishing the office of
Financial Ombudsman confidence level to financial system and the financial services market increased. This was also brought about by developing supervision
systems over the implementation of legislation on consumer right protection, and the implementation of effective enforcement measures to fight violations of
legislation, as well as introduction of compensatory mechanisms to investors.
Consumer rights protection was enhanced as regards services on insuring civil liability of vehicle owners by progressive raising the limits of insurers liability.
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IV. Comprehensive Plan of Measures to Implement the Program
№
Direction
Block
A.1.1 А. Ensure
1. Monetary
macroeconomic policy based on
stability
inflation
targeting and
flexible ER
regime
Measures
1. Develop and
implement
monetary policy
based on
inflation
targeting
Actions
(і) Strengthen the role of accounting rate as monetary
policy rate, and interest rates on instruments for liquidity
regulation are to be determined depending on the policy
rate
(іі) Define clear principles and rules for the use of monetary
policy, operating principles serving the criteria to assess
adequacy of the tools and procedures for liquidity
regulation
Data
Data to
from
1
31
January December
2015
2016
Responsible
agency
NBU
(ііі) Develop and implement a monetary policy plan based
on inflation targeting envisaging the following measures:
A.1.2 А. Ensure
1. Monetary
macroeconomic policy based on
stability
inflation
targeting and
flexible ER
regime
2. Develop and
implement ER
policy based on
flexible ER
regime
- development of regulators institutional capability;
- changes in the relevant legislation and administrative
limitations;
- move to inflation targeting.
(і) Make flexible ER regime the basis for the FX and ER
policy;
(іі) Improve FX interventions at the backdrop of
transferring to inflation targeting regime;
(ііі) Develop guidelines to impose temporary bans and
restrictions when conducting flexible exchange
rates in crisis situations;
(іv) Develop and implement performance plan for FX and
ER policy envisaging the following measures on:
- bringing down high dollarization levels, including
dollarization of assets and liabilities of banks;
- change in relevant legislation and administrative
limitations as regards FX market transactions;
1
January
2015
30 June
2016
NBU
14
№
Direction
Block
B.1.1 В Ensure
1. Align
financial
legislation to
stability and
EU standards
dynamic
development of
financial
markets
B.1.2 В Ensure
1. Align
financial
legislation to
stability and
EU standards
dynamic
development of
financial
markets
Measures
Actions
(і) Develop and implement plan to align legislation
envisaging the following measures on:
- equal access to financial services (access to the market
and guarantees of equal conditions to conduct professional
activities at financial services market);
- equal access to clearing systems and official mechanisms
of financing and refinancing that are accessible when doing
business as usual;
- equal access of investors and creditors to agencies
extending financial services;
- support of dialogue between regulators and market
participants;
- ensure reporting and public control over the plan
implementation through publishing intermediary results of
harmonization plan implementation;
(іі) Support dialogue with the EU representatives as regards
success levels of legislation harmonization efforts;
2. Update
(і) Develop and implement the plan to align legislation
legislation as
envisaging measures as follows:
regards ensuring - direct investment, its repatriation, as well as repatriation
free movement of of their profits,
capital
- extending credits (loans) to conduct trade transactions or
to extend services,
- portfolio investment, and financial loans and investor
credits,
- protection of investor rights,
- support the dialogue between regulators and market
participants,
- ensure reporting and public control over the plan
implementation through publishing intermediary results of
harmonization plan implementation,
1. Update
legislation as
regards ensuring
equal competitive
conditions at
financial markets
Data
from
1 July
2015
Data to
1 July
2015
30
September
2018
30
September
2018
Responsible
agency
NBU, NCPRFSS,
NCSSM
NBU, NCSSM
15
№
Direction
Block
Measures
Actions
(іі) Develop and implement FX legislation liberalization
plan, envisaging, inter alia, the following measures:
- liberalization of FX transactions account regime;
- improvement of the mechanism and conditions to convert
FX foreign valuables used to conduct investment in
Ukraine, including those used as contributions to statutory
capital of legal entities and equity capital of institutional
investors, as well as when repatriating the above;
- ensure access of Ukrainian investors to foreign financial
instruments;
(ііі) At the FX market, implement the experience of
regulation, institutional development and mechanism for
unbiased price formation previously tested at stock
exchange market segment;
(іv) Support dialogue with the EU representatives as
regards success levels of legislation harmonization efforts.
B.1.3 В Ensure
1. Align
3. Update
(і) Develop and implement the plan to align legislation
financial
legislation to
legislations as
envisaging the following measures:
stability and
EU standards
regards general - meeting requirements of the relevant EU practices
dynamic
regulation of
mentioned in Appendix XVII of Association Agreement;
development of
financial markets - support dialogue between regulators and market
financial
participants;
markets
- ensure proper reporting and public control over the plan
implementation through publishing intermediary results of
harmonization plan implementation;
(іі) Support dialogue with the EU representatives as regards
success levels of legislation harmonization efforts.
B.2.1 В Ensure
2. Modernization 1. Improve
(і) Improve legislation on disclosure of beneficiaries and
financial
of regulation and regulation and
identification of parties related to financial institutions;
stability and supervision
supervision
(іі) Revise rules to conduct financial transactions with
dynamic
system
system as regards related parties;
Data
from
1 July
2015
Data to
1 July
2014
30
September
2018
NBU, NCPRFSS,
NCSSM
1
January
2015
30 June
2016
NBU, NCPRFSS,
NCSSM, DGF
31
December
2016
Responsible
agency
NBU, NCSSM
16
№
Direction
Block
development of
financial
markets
Actions
(ііі) Improve reporting of financial institutions, including
banks as regards related party transactions, and conduct
prudential analysis of such reports;
(іv) Develop action plant to decrease volumes of related
party transactions and control its realization at the level of
individual financial institutions and market in general;
(v) Ensure unification of terminology in Ukrainian
legislation as regards identification of related parties,
controllers, beneficiaries, etc;
(vі) Introduce personal property, administrative, and
criminal liability for bank related parties for their action or
inaction leading to detriment incurred to creditors.
2. Improve
(і) Develop system of regular asset quality assessment of
regulation and
banks and non-banking financial institutions to identify
supervision
restructuring needs, and consider the necessity to conduct
system as regards regular stress-tests;
identification of (іі) Ensure systemic assessment on banks and non-banking
financial market financial institutions needs in liquidity support and
participants
recapitalization;
needs in
(ііі) Develop mechanism to conduct recapitalization of
recapitalization
financial institutions alongside with effective control over
recapitalization plans and improvement of financial
situation;
(іv) Introduce new requirements to capitalization, solvency
and liquidity of financial institutions according to Basel ІІІ,
Solvency II and other EU requirements.
3. Improve
(і) Introduce mechanist to remove ineffective financial
regulation and
market participants from the market, including those failing
supervision
to perform recapitalization plans and to improve their
system as regards financial situation;
Data
from
Data to
Responsible
agency
identification,
control, and
bringing down
the number of
transactions with
related parties
B.2.2 В Ensure
2. Modernization
financial
of regulation and
stability and supervision
dynamic
system
development of
financial
markets
B.2.3 В Ensure
financial
stability and
dynamic
Measures
2. Modernization
of regulation and
supervision
systems
1
January
2015
31
December
2015
NBU, NCPRFSS,
NCSSM
1
January
2015
1
January
2015
31
December
2019
31
December
2015
NBU, NCPRFSS,
NCSSM
NBU, NCPRFSS,
NCSSM, DGF
17
№
Direction
Block
Measures
development of
financial
markets
removing
ineffective
financial market
participants from
the market
B.2.4 В Ensure
2. Modernization 4. Improve
financial
of regulation and regulation and
stability and supervision
supervision
dynamic
systems
(oversight)
development of
system as regards
financial
functioning of
markets
system-important
financial market
players
B.2.5 В Ensure
2. Modernization
financial
of regulation and
stability and supervision
dynamic
systems
development of
financial
markets
5. Improve
regulation and
supervision
(oversight)
system as regards
implementation
of international
supervision
(oversight)
standards for
financial markets
Actions
Data
from
Data to
Responsible
agency
(іі) Enhance efficiency of creditor rights protection when
removing financial institutions from the market, including
through establishing timeframe to finalize bank and other
financial institutions liquidation procedures.
(і) Develop and implement changes to legislation as regards
identification of system-important non-banking financial
institutions;
(іі) Develop strategy to prevent risks related to activities of
system-important banks and non-banking financial
institutions;
1
January
2015
31
December
2015
NBU, MINFIN,
NCPRFSS,
NCSSM
1 April
2015
31
December
2016
NBU, NCPRFSS,
NCSSM
(ііі) Identify special regulatory and supervisory
requirements to be applied to system-important banks and
non-banking financial institutions;
(іv) Design system to monitor activities of systemimportant banks and non-banking financial institutions;
(v) Ensure effective mechanism to support liquidity and
conduct recapitalization of system-important banks and
non-banking financial institutions to protect interests of
consumers, participants and regulators of financial market.
(і) Transfer the focus in further development of
supervisory function at financial market from compliance
based supervision to risk based supervision;
(іі) Analyze normative and legal documents on supervision
at financial market in terms of their adherence to the best
international practices, in particular:
- “Basic principles of effective banking supervision” of the
Basel Committee;
- “Basic insurance principles” of the International
Supervisors Association over insurance practices;
18
№
Direction
Block
Measures
Actions
Data
from
Data to
Responsible
agency
- “Objectives and principles of regulating securities
circulation” of the International Organization of Securities
Commissions;
- “Principles for financial markets infrastructure” of the
Committee on payment systems of the Bank for
International Settlements and Technical Committee of the
International Organization of Securities Commissions;
(ііі) Organize dialogue with market participants to explain
changes in normative and legal documents as regards
supervision;
(іv) Develop a plan for gradual change of regulatory
requirements to enable adaptation of financial market
participants, and to implement diversified approaches to
regulation and prudential supervision;
(v) Improve quality of regulation system as regards
activities of non-banking financial institutions and improve
supervisory function over such institutions
(vі) Implement measures of consolidated supervision over
activities of stock exchanges and their participants, as well
as over activities of non-banking financial institutions;
(vіі) Improve conditions of introducing and listing
securities;
(vііі) Ensure equal conditions for placing applications
(bids) and drawing stock exchange contracts;
(ix) Implement full-fledged regulation of price-formation
for all trade organizers;
(x) Introduce mechanism to assess whether payment
systems of Ukraine meet international standards;
(xі) Expand participation of market participants in
regulating practices in financial sector on the basis of selfregulation institutes.
19
№
Direction
Block
Measures
Actions
B.3.1 В Ensure
financial
stability and
dynamic
development of
financial
markets
B.3.2 В Ensure
financial
stability and
dynamic
development of
financial
markets
3. Enhance
transparency
and stability of
financial
markets
1. Stimulate
consolidation of
financial markets
alongside
ensuring
competitiveness
(і) Improve legislation as regards merging financial market
participants;
(іі) Implement effective system of controls on preventing
unsubstantiated mergers to set up system financial
institutions aimed at further recapitalization by the state.
3. Enhance
transparency
and stability of
financial
markets
2. Ensure
transparency of
reports and
transactions of
financial market
participants
(і) Transfer of financial market participants to IFRS when
drawing financial reports;
(іі) Streamline and unify reports submitted to regulators by
financial market participants;
(ііі) Implement COREP and FINREP standards
(іv) Ensure implementation of “Ten basic principles of
information exchange”, disseminated by finance ministers
of G-7 member-countries and OECD agreements on
information exchange on taxation issues”
B.3.4 В Ensure
financial
stability and
dynamic
development of
financial
markets
B.3.5 Ensure
financial
stability and
dynamic
development of
3. Enhance
transparency
and stability of
financial
markets
(v) Unify reference books used by financial institutions
when compiling reports for regulators and when extending
financial services.
4. Improve
(і) Develop comprehensive strategy for state banks
financial
development;
situation and
(іі) Improve control mechanism over state banks activities;
control over state (ііі) Improve coordination between state banks and
banks
regulators.
3. Enhance
transparency
and stability of
financial
markets
5. Enhance
efficiency of the
system to
counteract
money-
(і) Enhance coordination of financial market regulators and
law enforcement agencies to prevent and counteract money
laundering, terrorism financing, and financing proliferation
of weapons of mass destruction;
Data
Data to
from
1
31
January December
2015
2016
Responsible
agency
NBU, NCPRFSS,
NCSSM
1
30
January November
2015
2018
NBU, NCPRFSS,
NCSSM
1 April
2015
30
September
2016
MINFIN, NBU
1 July
2015
31 March
2017
NBU, NCPRFSS,
NCSSM
20
№
Direction
Block
financial
markets
Measures
Actions
Data
from
Data to
Responsible
agency
laundering,
financing
terrorism, and
proliferation of
mass destruction
weapons through
financial markets
6. Ensure further
development of
non-cash
circulation to
decrease cash
circulation
segment, and to
develop retail
non-cash epayments in
Ukraine
(іі) Finalize implementation of International Standards on
counteracting money laundering, and financing terrorism,
and proliferation of weapons of mass destruction of
Financial Action Task Force on Money Laundering.
(і) Develop policies for cash circulation aimed at effective,
uninterrupted and safe performing of cash transactions, as
well as gradual decrease of cash segment and its
replacement by non-cash payments;
(іі) Ensure access to the market of international e-payment
systems in line with transparent and free competition
conditions;
(ііі) Create equal conditions for payment systems
functioning at the market to increase the volume of noncash payments, liberalize market, and reduce the cost for
consumers;
(іv) Create conditions to increase the share of non-cash
payments by introducing innovative payment products and
developing e-payments and their infrastructure.
1 April
2015
31
December
2016
NBU
(і) Improve requirements to corporate governance of
financial market participants, including through enhancing
the role of supervisory councils, development of
independent directors institutes, and identification of
reasons and driving forces to conduct internal and
independent audits;
(іі) Tighten requirements to risk-management of financial
market participants.
(і) Analyze and adapt international experience on out-ofcourt settlement and offering incentives to restructure
arrears that may be rehabilitated;
1 April
2015
31
December
2016
NBU, NCSSM
NCPRFSS
1
January
2015
31
December
2015
NBU, DGF
B.3.6 В Ensure
financial
stability and
dynamic
development of
financial
markets
3. Enhance
transparency
and stability of
financial
markets
B.3.7 В Ensure
financial
stability and
dynamic
development of
financial
markets
3. Enhance
transparency
and stability of
financial
markets
7. Improve
corporate
governance of
financial market
participants
B.4.1 В Ensure
financial
stability and
4. Clear out
markets of
problem assets
1. Stimulate
restructuring of
arrears that may
21
№
Direction
Block
Measures
dynamic
development of
financial
markets
B.4.2 В Ensure
4. Clear out
financial
markets of
stability and
problem assets
dynamic
development of
financial
markets
be rehabilitated
B.4.3 В Ensure
4. Clear out
financial
markets of
stability and
problem assets
dynamic
development of
financial
markets
3. Implement
effective
mechanism to
protect creditor
rights
2. Enhance
efficiency of
work with
problem and noncore assets of
state banks,
including
nationalized
banks
Actions
(іі) Ensure legislative support for the out-of-court
settlement mechanism, including by envisaging tax
privileges and streamlining enforcement mechanism for
failed restructuring.
(і) Analyze current practices and problems arising with
problem and non-core assets in state financial institutions;
(іі) Develop approach to implement the most effective
market practices on resolving problem arrears in state
financial institutions, giving due consideration to market
value of problem and non-core assets;
(ііі) Ensure amendments to normative and legal documents
aimed at protection of state interests that decrease
efficiency of work with problem and non-core assets in
state financial institutions, keeping proper control levels
and protection of state interests.
(і) Improve legislation on enforced payment of arrears and
alienation and sale of collaterized property, as well as to
make shorter alienation procedures for collaterals to the
benefit of creditors;
(іі) Introduce an institute of private enforcement agents
(executors), as well as ensure relevant legislative changes;
(ііі) Streamline legislation on bankruptcy of debtors and
financial market participants through shortening bankruptcy
procedures;
Data
from
Data to
Responsible
agency
1
January
2015
31 March
2016
NBU, MINFIN
1
January
2015
31
December
2015
NBU, DGF,
NCSSM,
NCPRFSS
(iv) Resolve status of assets that are subject to agreements
in systems with central counter-agent, as of the day of
announced moratorium and as of the day when decision of
moratorium is announced;
(v) Develop approaches to protection of pension assets
placed with commercial banks;
22
№
Direction
Block
В.5.1 В Ensure
5. Ensure
financial
dynamic
stability and development of
dynamic
financial market
development of
instruments and
financial
infrastructure
markets
В.5.2 В Ensure
5. Ensure
financial
dynamic
stability and development of
dynamic
financial market
development of
instruments and
financial
infrastructure
markets
Measures
Actions
Data
from
(vi) Revise requirements on assets that act as reserves
(provisions) in non-banking financial institutions;
1. Stimulate
(і) Resolve, at legislative level, functioning aspects of
1
development of derivative financial instruments market (derivatives), thus
January
financial market enabling to conduct transactions on hedging of credit,
2015
derivative
interest, and FX risks;
instruments
(іі) Develop normative base to regulate transactions at the
(derivatives)
market of derivative instruments (derivatives);
(ііі) Ensure practical implementation of calculation cycle
1
Т+2 and optimum calculation models as regards legal
January
documents on securities in line with “security delivery
2015
against payment” principle.
2. Stimulate
(і) Lift restrictions to conduct placement and/or circulation
1
development of of securities issued by foreign entities in Ukrainian
January
financial market territory, including securities of Ukrainian issuers placed at
2015
instruments
foreign stock markets;
(іі) Stimulate activities on securities managements, in
particular, implement practice of joint investment to
securities according to agreement on joint management of
securities;
(ііі) Reconcile transactions of lending securities and credit
transactions with securities placed as collateral at stock
markets;
(іv) Expand the range of corporate debt securities, including
by allowing to issue stock securities and debt instruments to
finance infrastructure projects, with the simultaneous
adoption of a legal mechanism to issue convertible bonds
and to transfer issuer liabilities to debt and share securities;
(v) Ensure possibilities to conduct issuance of securities by
financial market participants with liquid financial assets of
the issuer acting as collateral.
Data to
Responsible
agency
31
December
2015
NCSSM, NBU
30 June
2017
NCSSM, NBU
30 June
2016
NCSSM, NBU
23
№
Direction
Block
В.5.3 В Ensure
5. Ensure
financial
dynamic
stability and development of
dynamic
financial market
development of
instruments and
financial
infrastructure
markets
В.5.4 В Ensure
5. Ensure
financial
dynamic
stability and development of
dynamic
financial market
development of
instruments and
financial
infrastructure
markets
Measures
Actions
(і) Develop and implement a plan to introduce and
stimulate accumulative pension provisioning, envisaging
the following measures on:
- implementation of accumulative system of compulsory
state pension insurance (2nd tier of the pension system);
- ensure effective regulation and supervision over
participants in the accumulative system of the compulsory
state pension insurance and over the mechanism to
accumulate and use pension funds;
- ensure legislative implementation of the “smart investor”
rule when managing assets of non-state pension funds;
- set up special “long” financial instruments (state bonds
with yields not lower than inflation level) to invest assets of
the accumulative pension system;
- provide more incentives to employers and workers to
participate in additional pension provision programs;
- tax incentives for employers participation;
- incentives for services consumers participation;
(іі) Ensure coordination of market regulators and other state
institutions, as well as financial market participants in
implementation of the plan to stimulate non-state pension
provisioning.
4. Stimulate more (і) Improve methodology of long-term banking credits
effective
(loans);
functioning of
(іі) Give incentives to local syndicate and consortium
available
contract development;
instruments and (ііі) Facilitate equal opportunities to get access to T-bills
infrastructure of sales to all participants in stock exchange trade;
financial markets (іv) Provide incentives for bank transactions at T-bills
market, including by developing the mechanism of liquidity
support in exchange of T-bills acting as collateral;
3. Stimulate
development of
accumulative
pension
provisioning
Data
from
1 July
2015
1
January
2015
Data to
31
December
2019
30 June
2016
Responsible
agency
NCSSM,
NCPRFSS
NBU, MINFIN
NCPRFSS,
24
№
Direction
В.5.5 В Ensure
financial
stability and
dynamic
Block
5. Ensure
dynamic
development of
Measures
5. Stimulate
development of
intermediaries
institute of
Actions
(v) Improve T-bills issue conditions by introducing earmarked issues, in particular to finance long-term
infrastructure and investment projects;
(vі) Facilitate formation of benchmarks system for local FX
market and cash market;
(viі) Support setting up of an insurance agency for export
credits and investment to implement instruments of state
support of export;
(vііi) Reconcile the legal norm envisaging unconditional
right of deposit owner for early termination of agreement
(contract);
(ix)Ensure favorable conditions to implement basic
economic interests of the most active market segment
(public companies, stock market, investors), and to
facilitate fighting the use of counterfeit financial
instruments;
(х) Stimulate increase in sources and volumes of local longterm financial resources;
(xi) Stimulate development of local public debt market as
an effective source for Ukrainian companies to attract and
invest funds;
(хіі) Stimulate financial leasing by introducing change to
legislation as regards recognizing leasing companies as
creditors, creating mechanisms to return property and to
streamline taxation;
(xііі) Develop and implement a plan for a step-by-step
transformation of credit cooperation market.
(і) Reconcile activities of intermediaries (agents) at
financial market;
(іі) Introduce liability of financial institutions for activities
of their intermediaries (agents);
Data
from
Data to
1
30
January September
2015
2016
Responsible
agency
NCSSM,
NCPRFSS, NBU
25
№
Direction
Block
development of financial market
financial
instruments and
markets
infrastructure
В.5.6 В Ensure
5. Ensure
financial
dynamic
stability and development of
dynamic
financial market
development of
instruments and
financial
infrastructure
markets
В.5.7 В Ensure
5. Ensure
financial
dynamic
stability and development of
dynamic
financial market
development of
instruments and
financial
infrastructure
markets
В.5.8 В Ensure
5. Ensure
financial
dynamic
stability and development of
dynamic
financial market
development of
instruments and
financial
infrastructure
markets
Measures
Actions
Data
from
Data to
Responsible
agency
financial market (ііі) Ensure regulation of intermediaries (agents) acting at
financial market.
(і) Reconcile functioning of collector companies, and
ensure development of instruments to improve payment
discipline as regards problem assets;
(іі) Implement and ensure development of private enforcers
institute;
(ііі) Ensure development of legislation as regards selling
debts to financial companies;
(іv) Lift barriers to work with collaterized and agricultural
quittances (receipts).
7. Stimulate
(і) Set up Credit Registry in the NBU;
infrastructure
(іі) Ensure cooperation among credit bureaus, and
development to consolidation of accessible information on credit histories;
ensure effective (ііі) Stimulate formation of a single registry of credit
accumulation and histories, and expansion of the registry users list;
information
(іv) Ensure systemic and complete disclosure of negative
exchange as
credit histories of financial institution borrowers to be
regards
accumulated in registries.
borrowers credit
history
8. Stimulate
(і) Support development of agricultural insurance;
comprehensive (іі) Improve regulation of insuring civic and legal
development of responsibility of automobile owners, and enhance
insurance
transparency and efficiency of Motor Vehicle Insurance
services market Bureau of Ukraine operation;
(ііі) Set up preconditions to develop accumulative insurance
of life;
(іv) Set up preconditions to develop voluntary medical
insurance.
6. Stimulate
infrastructure
development to
ensure efficient
management of
problem assets
1 April
2015
31
December
2016
MINJUST, NBU
1 April
2015
31
December
2015
NCPRFSS,
NCSSM,NBU
1 April
2015
30 June
2016
NBU, NCPRFSS
1 April
2015
31
December
2017
МЕРТУ, NCSSM,
NCPRFSS
26
№
Direction
Block
Measures
Actions
В.5.9 В Ensure
5. Ensure
financial
dynamic
stability and development of
dynamic
financial market
development of
instruments and
financial
infrastructure
markets
9. Ensure
consolidation and
development of
stock exchange
infrastructure
(і) Reconcile issues on agricultural stock exchange
accountability as regards regulating transactions with
derivatives;
(іі) Stimulate consolidation of stock exchange infrastructure
to conduct better control and counteract price manipulation
and defragmentation, and to move from local level of stock
exchange competition to the national one;
(ііі) Ensure legislative and technological provisions to
transfer securities under the scope of the NBU
responsibility (in line with the Law of Ukraine “On
depository system of Ukraine”) to depository service of the
Central Depository;
(іv) Improve accounting and clearing infrastructure of
financial market;
(v) Improve mechanisms of Central Depository functioning
(guaranteeing the non-banking financial institution status,
implementing control over depository establishments at
licensing stages, and consolidating information on actions
of corporate issuers of securities, etc).
B5.10 В Ensure
5. Ensure
financial
dynamic
stability and development of
dynamic
financial market
development of
instruments and
financial
infrastructure
markets
10. Ensure
development of
rating agencies
institute
B.6.1 В Ensure
financial
stability and
dynamic
1. Improve
system to tax
transactions
related to
6. Improve
taxation system
for financial
market
Data
from
1 April
2015
Data to
(і) Reconcile rules of rating agencies functioning and use of
(quoting) ratings;
(іі) Improve supervision over rating agencies to ensure
quality of ratings and prevent conflict of interests.
1 April
2015
31
December
2016
NCSSM,
NCPRFSS, NBU
(і) Optimize taxation of transactions on selling assets and
collateral to the benefit of creditors of financial institutions
that are being liquidated, as well as other transactions
related to liquidation;
1
January
2015
31
December
2015
NBU, DGF
30 June
2017
Responsible
agency
NCSSM, NBU,
NCPRFSS
27
№
Direction
development of
financial
markets
B.6.2 В Ensure
financial
stability and
dynamic
development of
financial
markets
Block
participants
Measures
enforcement of
problem arrears
Actions
2. Harmonize
taxation systems
of financial
market
instruments
Data to
Responsible
agency
(іі) Optimize taxation of transactions on alienation and sale
of assets and collateral to the benefit of creditors.
(і) Ensure harmonization of taxation systems for
transactions with financial instruments, and improve
legislation on taxation of non-banking financial institutions
and consumers of their services;
(іі) Improve legislation on tax agents operation when taxing
transactions with securities;
(ііі) Identify characteristics of accounting transactions with
financial instruments, including derivatives, and to ensure
their legislative effect.
B.6.3 В Ensure
6. Improve
3. Ensure tax
(і) Support setting up favorable taxation system for
financial
taxation system stimulation of
derivatives market;
stability and
for financial
financial market (іі) Develop mechanism for tax stimulation of long-term
dynamic
market
instruments
investment;
development of participants
development
(ііі) Support setting up a favorable taxation system for joint
financial
investment market taxation.
markets
С.1.1 С.
1. Ensure
1. Ensure
(і) Analyze Ukrainian legislation as regards functioning of
Development institutional
institutional
financial market regulators and their adequacy to the best
of institutional independence
independence of world practices of ensuring independent regulators
potential for
regulators
operation;
of regulators
financial
through changes (іі) Introduce changes to laws on financial market
market
to corresponding regulators operation with the objective of enhancing their
regulators
legislation
(regulators) autonomy and independence.
С.1.2 С.
1. Ensure
2. Ensure
(і) Ensure independence of regulators as regards their
Development institutional
financial
budget capabilities;
of institutional independence
independence of (іі) Ensure independence of regulators profit distribution;
potential for
regulators and
(ііі) Introduce the system for differentiated contributions to
of regulators
financial
the DGF
the DGF depending on the assessment of the banks asset
market
quality.
6. Improve
taxation system
for financial
market
participants
Data
from
1 April
2015
31 March
2016
MINJUST,
NCSSM,
NCPRFSS, NBU
1
January
2015
31
December
2015
NCSSM
1 April
2015
31
December
2016
NBU, NCSSM
NCPRFSS
1
January
2015
31
December
2015
NCSSM, NBU,
NCPRFSS, DGF
28
№
Direction
Block
Measures
Actions
Data
from
Data to
Responsible
agency
regulators
С.1.3 С.
Development
of institutional
potential for
financial
market
regulators
С.1.4 С.
Development
of institutional
potential for
financial
market
regulators
1. Ensure
institutional
independence
of regulators
3. Enhance
institutional
control of
regulators
(і) Enhance supervisory council (or collegial agency) role
of each regulator by making the council (or collegial
agency) responsible for internal control measures;
(іі) Set up audit committees at the level of supervisory
councils (or collegial agencies) of regulators;
(ііі) Continue to conduct independent external audit.
1 April
2015
31 March
2016
NBU, NCSSM
NCPRFSS
1. Ensure
institutional
independence
of regulators
31
December
2016
NBU, NCSSM
NCPRFSS
2. Enhance
organizational
efficiency of
regulators
(і) Analyze enforcement instruments of regulators,
including those of restrictive character, as the ones to be
implemented as preventive measures;
(іі) Develop and implement effective range of enforcement
instruments to ensure equal efficiency of enforcement
measures, including those of restrictive nature, to be
implemented by regulators in various segments of financial
market.
(і) Conduct detailed analysis of this financial market reform
strategy to be detailed to the level of each particular
regulator;
(іі) Identify ear-marked model of regulators operation on
the basis of detailed strategy, including the expediency of
functions transfer among regulators;
(ііі) Develop program and road-map to transform financial
market regulators;
(іv) Conduct decomposition of transformation program
into specific projects with clearly identified objectives and
performance schedules;
(v) Ensure implementation of regulators transformation
program through centralized management of program
projects at the level of special committees of regulators.
1 April
2015
С.2.1 С.
Development
of institutional
potential for
financial
market
regulators
4. Ensure
institutional
potential of
regulators
through raising
efficiency of
enforcement
strategies
1. Conduct
effective
transformation of
regulators in line
with functioning
strategy
1 April
2015
31
December
2016
NBU, NCSSM
NCPRFSS
29
№
Direction
Block
Measures
Actions
С.2.2 С.
Development
of institutional
potential for
financial
market
regulators
2. Enhance
organizational
efficiency of
regulators
2. Ensure
institutional
capacity of
regulators to
implement
international
supervision
standards at
financial market
and to move from
compliance based
supervision to
risk based
supervision
С.2.3 С.
Development
2. Enhance
organizational
3. Ensure
institutional
(і) Analyze international practices and formulate
supervision and oversight standards based on risk
assessment, in particular:
- “Major principles of effective banking supervision” of the
Basel Committee;
- “Major insurance principles” of the International
Supervision Association for insurance activities;
- “Objectives and principles to regulate securities
circulation” of the International Organization of Securities
Commissions;
- “Principles for financial markets infrastructure” of the
Committee on payment and accounting systems of the Bank
for International Settlements and Technical Committee of
the International Organization of Securities Commissions;
- International standards to counteract money laundering
and terrorism financing and proliferation of weapons of
mass destruction under FATF;
(іі) Conduct adaptation of normative documents and
internal procedures and instructions of regulators to
international supervision standards;
(ііі) Conduct training of staff in charge of supervision
focusing at risk assessment, and stimulate experience
exchange among international regulators;
(іv) Implement gradual transfer to supervision based on risk
assessment.
(і) Improve monetary policy instruments to implement
inflation targeting regime;
Data
from
1 July
2015
Data to
1 April
2015
31
December
31
December
2019
Responsible
agency
NBU, NCSSM
NCPRFSS
NBU
30
№
Direction
of institutional
potential for
financial
market
regulators
Block
efficiency of
regulators
С.2.4 С.
Development
of institutional
potential for
financial
market
regulators
2. Enhance
organizational
efficiency of
regulators
С.2.5 С.
Development
of institutional
potential for
financial
market
regulators
2. Enhance
organizational
efficiency of
regulators
Measures
Actions
capacity of
regulators to
organize
monetary policy
based on
inflation
targeting and
flexible FX
regime
4. Enhance
institutional
potential of
regulators to take
effective
balanced
decisions, to
enhance internal
control
(іі) Improve the system to analyze and the model to project
NBU macroeconomic indicators as a single source to take
decisions in case of inflation targeting regime
implementation.
(і) Analyze available structures, processes, and systems of
decision taking;
(іі) Develop specialized committees system for each
regulator to ensure efficient and timely taking of collegial
decisions through board-delegated authority;
(ііі) Conduct re-engineering of decision taking processes
aimed at preventing functions duplication, setting up
effective internal control system, and enhancing quality of
analytical data to take efficient decisions;
(іv) Change organizational structures of regulators to
enhance their controlling and analytical functions
independence, differentiate between functions having
potential conflict of interests, and enhance internal controls;
(v) Conduct organizational and functional centralization.
5. Raise
(і) Develop communication strategy, and ensure its
communication harmonization at all financial market regulators levels;
efficiency of
(іі) Ensure smooth internal information exchange processes
regulators with among regulators to provide for transparent and efficient
consumers and
communication;
financial market (ііі) Develop communication instruments and channels, and
participants
set up a mechanism for regular system communication to
enhance regulators operational transparency;
Data
from
Data to
Responsible
agency
2016
1 April
2015
31
December
2016
NBU, NCSSM,
NCPRFSS
1
January
2015
31
December
2015
NBU, DGF,
NCSSM,
NCPRFSS
31
№
Direction
Block
С.2.6 С.
Development
of institutional
potential for
financial
market
regulators
2. Enhance
organizational
efficiency of
regulators
С.2.7 С.
Development
of institutional
potential for
financial
market
regulators
2. Enhance
organizational
efficiency of
regulators
Measures
Actions
(іv) Ensure transparency of taking decisions on the NBU
monetary policy through disclosure of motives and reasons
in decision making process.
(і) Enhance liability for manipulations at the FX and stock
markets, and misuse (abuse) of insider information;
6. Increase
efficiency of
counteracting
corrupt practices (іі) Enhance liability for swindling at financial markets,
at financial
including liability of beneficiaries and financial institutions
markets
management whose actions lead to deterioration of
financial situation of the said institutions, and for twisting
financial information;
(ііі) Revise and enhance efficiency of normative documents
on identification of corruption at financial markets;
(іv) Ensure development of institutional capacity of
regulators to identify related parties when regulating
financial markets, and improve control instruments over
credits extended to related parties.
7. Improve
(і) Enhance efficiency of identification of potentially
regulators
problem and ineffective financial market participants;
effectiveness in
working with
(іі) Standardize and raise efficiency of regulators
problem assets at instruments on working with inefficient financial market
financial markets participants, ensure development of the curator office and
temporary manager of a financial institution;
Data
from
Data to
Responsible
agency
1
January
2015
31
December
2015
NBU, DGF,
NCSSM,
NCPRFSS
1 April
2015
30 June
2016
NBU, DGF,
NCSSM,
NCPRFSS
(iіі) Enhance efficiency of credit risk management
processes (including management of collateral) undertaken
by regulators when rehabilitating or liquidating inefficient
market participants, and ensure development of an institute
of a financial institution agency liquidator;
32
№
Direction
Block
Measures
Actions
Data
from
Data to
Responsible
agency
(іv) Introduce accumulation of non-core assets in
specialized management funds to ensure efficient
management of non-core financial market assets with the
objective of receiving partial compensation and selling of
assets at the most favorable market conditions;
С.3.1 С.
Development
of institutional
potential for
financial
market
regulators
3. Improve
coordination
between
regulators and
financial
market
participants
(v) Ensure development of a single center, on the basis of
one regulator, to sell non-core assets to the benefit of
financial market regulators, including the NBU and the
DGF.
1. Improve
(і) With all financial market regulators participation, to set
coordination
up a collegial body to conduct regular discussions of market
among financial development problems and tendencies, to coordinate efforts
market regulators of regulators, and to ensure effective operation of such
collegial body committees;
(іі) Set up mechanisms to exchange information on market
participants, on supervisory efforts, and other analytical
data among market regulators to formulate single
informational space;
(ііі) Identify mechanisms for regulators to cooperate with
financial market participants when implementing cuttingedge legal initiatives;
(іv) Ensure dialogue and coordination among regulators to
harmonize market regulation, expand joint prudential
supervision measures, regulatory restrictions, and to
synchronize work on supervision over financial
conglomerates, etc;
(v) Improve legal enforcement system to financial market
participants through enhancing interaction among
regulators, including by implementing restrictive preventive
measures to counteract corruption at financial markets.
1
January
2015
30 June
2016
NBU, NCSSM
NCPRFSS
33
№
Direction
С.3.2 С.
Development
of institutional
potential for
financial
market
regulators
C.4.1 С.
Development
of institutional
potential for
financial
market
regulators
C.4.2 С.
Development
of institutional
Block
Measures
Actions
(і) Enhance efficiency of dialogue between self-regulated
organizations of financial market participants, attract
market representatives to discussion of major changes that
are planned to implement.
(іі) Stimulate functional build-up and enhance efficiency of
self-regulated organizations, including with the objective to
improve dialogue efficiency on legislative and supervision
issues;
(ііі) Formulate and implement, jointly with market
participants, requirements to key experts of financial
market, including by devising standardized codes of ethics
and membership in professional organizations.
4. Stimulate
1. Implement
(і) Study world experience of the XBRL standard
implementation standards of
implementation;
of cutting-edge reporting and
(іі) Analyze technical requirements of the XBRL standard
IT technologies information
implementation, and assess technical capability to transfer
exchange to
to information exchange in line with the XBRL standard;
ensure effective (ііі) Develop and implement the plan of XBRL standard
integration into introduction envisaging:
the EU financial - steps to increase the ІТ-maturity level of market
market
regulators;
- steps to implementing the XBRL standard by market
participants;
- adequate timeline to implement the above and ensure
compulsory reporting according to the new standard;
- harmonization to initiative of implementing COREP and
FINREP.
4. Stimulate
2. Upgrade
(і) Develop dialogue with financial market participants on
implementation normative and
limitations to use forward-looking IT-technologies as
of cutting-edge legal basis as
established by the current normative and legal documents;
3. Improve
coordination
between
regulators and
financial
market
participants
2. Improve
coordination
between financial
market regulators
and market
participants on
the basis of selfformed
organizations
Data
from
1 July
2015
Data to
1 July
2015
31
December
2018
NCSSM
NCPRFSS, NBU
1 July
2015
30 June
2018
MINFIN, NBU,
NCSSM,
NCPRFSS,
МЕРТУ
1 July
2015
31
December
2018
NBU, NCSSM
NCPRFSS
31
December
2015
Responsible
agency
NCSSM
NCPRFSS, NBU
34
№
Direction
potential for
financial
market
regulators
C.4.3 С.
Development
of institutional
potential for
financial
market
regulators
C.4.4 С.
Development
of institutional
potential for
financial
market
regulators
Block
Measures
IT technologies regards using IT
technologies by
financial market
participants
Actions
3. Implement
cutting edge IT
security
standards at
financial market
Data to
Responsible
agency
1 July
2015
31 March
2019
NBU, NCSSM
NCPRFSS
1 July
2015
31
December
2016
NBU, NCSSM
NCPRFSS
(іі) Analyze proposed changes on deterioration of
regulators capacity to perform their functions as the result
of such changes, and as regards meeting IT-security
standards;
(ііі) Adapt normative and legal documents to use cuttingedge IT-technologies;
(іv) Implement legal changes to establish unified formats
and single unified template of e-documents to organize edocuments circulation among financial institutions.
(і) Organize systemic analysis of the best international
practices and standards of IT-security in sectors relevant for
financial market operation;
(іі) Ensure systemic work on improving IT-security
standards set up by financial market regulators;
(ііі) Ensure control over relevant IT-security standards
implementation by market participants.
4. Stimulate
4. Continue
(і) Introduce system of e-documents circulation, and ensure
implementation implementation all internal processes transfer to e-document circulation;
of cutting-edge of IT
(іі) Support possibilities of implementing procedures to
IT technologies technologies to identify clients without them being physically present by
regulators
using cutting-edge achievements in IT and reliable
operation to
technological tools;
ensure more
(ііі) Ensure accumulation of data formed by each regulator
efficient outcome in a single data depository enabling such data adequate
archiving;
(іv) Implement control mechanism over such data quality;
(v) Organize internal report system to enhance efficiency of
information compilation to formulate managerial decisions;
(vi) Conduct centralization of IT-decisions, wherever
expedient, to improve manageability of data quality and
lowering expenditures.
4. Stimulate
implementation
of cutting-edge
IT technologies
Data
from
35
№
Direction
Block
Measures
D.1.1 D. Financial
market
consumers and
investors rights
protection
1. Stimulate
development of
financial
literacy of
consumers
financial
market
investors
1. Implement
comprehensive
program of
enhancing
financial literacy
of people of
Ukraine,
including through
development of
savings
(economy)
culture
D.2.1 D. Financial
market
consumers and
investors rights
protection
2. Raising
standards of
protecting
rights of
consumers and
financial
market
investors
1. Raise
standards of
information
disclosure to the
benefit of
consumers and
financial market
investors
D.2.2 D. Financial
market
consumers and
investors rights
protection
2. Raising
standards of
protecting
rights of
consumers and
financial
market
2. Improve
legislation as
regards
protecting rights
of consumers and
financial market
investors
Actions
Data
from
1 April
2015
(і) Through expanded dialogue with market participants and
financial organizations, to develop program materials to
raise financial literacy, including, inter alia, the following:
- explanation (description) of typical financial services and
instruments, and risks related to the above, as well as major
types of price formation;
- explanation of important clauses in contracts (agreements)
on extension of typical financial services;
- advice on managing personal and family (HH) finances;
- explanation of advantages to save and control
expenditures;
(іі) Disseminate information and training systems for HHs
within the Program framework;
(ііі) Implement the mechanism of updating program
materials depending on financial market development.
(і) Stimulate development of information disclosure
1
practices by public shareholding companies to ensure
January
greater transparency, and raise information disclosure
2015
standards;
(іі) Ensure transparent and complete disclosure of
information for a comprehensive understanding by a client
of possible risks and total value of extended services;
(ііі) Introduce clearly defined sanctions to participants of
financial services market for failure to provide preliminary
information on financial services.
(і) Implement a mechanism for protecting minority
1
shareholders rights, including through introducing the
January
mechanism of forced purchase and sale of shares and the
2015
Corporate Agreement Institute (Shareholder Agreement
(contract);
(іі) Implement efficient mechanisms of out-of-court settling
of disputes between financial market participants and
Data to
31 March
2016
Responsible
agency
NBU, DGF,
NCSSM,
NCPRFSS
31
December
2015
NCSSM, NBU,
NCPRFSS
31
December
2016
NCSSM, DGF,
NCPRFSS, NBU
36
№
Direction
Block
investors
D.2.3 D. Financial
market
consumers and
investors rights
protection
2. Raising
standards of
protecting
rights of
consumers and
financial
market
investors
Measures
Actions
Data
from
Data to
Responsible
agency
consumers of financial services;
(ііі) Study the possibility to set up compensation schemes
of protecting investor deposits and other consumers of nonbanking financial services;
(іv) Implement procedures to protect rights of owners of
corporate debt securities and legal reconciliation of t he
dialogue between the issuer and the investor.
3. Being
(і) Initiate setting up of the Financial Ombudsman Office
proactive to
with the functions of out-of-court settlement of disputes and
protect rights of complaints between financial institutions and their clientsconsumers and
physical persons;
financial market (іі) Introduce the mechanism to prevent setting up and
investors
functioning of financial pyramids;
(ііі) Enhance transparency and convenience of repaying
funds to bank depositors in case of bank liquidation through
revising the mechanism of funds repayment and refunding
to bank depositors;
(іv) Initiate revision and implementation of the Cabinet of
Ministers Strategy on reforming the system of consumer
rights protection at financial service markets.
1
January
2015
30 June
2016
NBU, DGF,
NCSSM,NCPRFSS
37
V. Expected Results of Program Implementation
Based on implementation of other priority reforms, Program implementation is to be monitored on a quarterly basis in line with the following key
parameters (indicators) execution.
Indicator
Indicator Calculation
2014
2020
Specific Indicators of Program Implementation
Consumer inflation
24,9%
Not higher than 5% per
Consumer price index
annum
Gold and FX reserves level
-
USD 7,3 billion
USD 38,7 billion
Cash in economy level
In line with methodology, М0 to GDP
18%
15%
Non-cash payments level in local payment system
In line with methodology
[1,2]%
Not lower than 30%
Credits and deposits dollarization level
In line with methodology
~50%
Lower than 40%
16,7% per annum
Not higher than 8% per
annum
Level of average weighted rates on new credits
(loans) to non-financial corporations in national
currency
In line with methodology
Capital adequacy ratio
According to requirements of Basel III
15.66
Not lower than 8%
Capital profitability level
In line with methodology
- 30,46%
Not lower than 10%
Herfindahl-Hirschman concentration index on
assets
In line with methodology
565
800
Credit to deposit ratio
In line with methodology
149%
110%
6 In line with the NBU methodology
38
Indicator
Insurance infiltration level
Indicator Calculation
In line with methodology, share in GDP
0,7%
2014
[7]%
2020
Insurers technical reserves
Insurers technical reserves ration to GDP
[1,2]%
[7]%
Pension savings of HHs
HHs pension savings ratio to GDP
1%
15%
Assets of the second tier pension system
Assets ratio to GDP
0%
10%
Assets of public JII
Public JII assets to GDP
[0,1]%
10%
Ukrainian financial market status according to the
FTSE International Index Agency Classification
According to the FTSE International Index Agency
Classification
Without status
Advanced Emerging
Financial market development in line with
methodology of calculating Global
Competitiveness Index
In line with methodology of calculating Global
Competitiveness Index (GCI).
107 position among 148
countries
50 position
Stock exchanges regulation in line with Global
Competitiveness Index calculation
In line with Global Competitiveness Index
calculation (GCI).
107 position among 148
countries
60 position
Economic freedom rating in line with rating
calculation by “Heritage Foundation”
In line with rating calculation by “Heritage
Foundation”
162 position among 189
countries
Ukraine among 30
positions
Legal rights reliability index in line with the
World Bank methodology
In line with the World Bank methodology
8
12
Indicators of social appraisal of Program implementation
Expert assessment as regards success of regulators
According to identified methodology
No data7
Not lower than 70%
7 Assessment commencement is planned from July 01, 2015
39
Indicator
Indicator Calculation
2014
2020
operation
Participants assessment of financial market
infrastructure
According to identified methodology
Social assessment of financial market credibility
According to identified methodology
No data7
Not lower than 70%
No data7
Not lower than 70%
-
EU Directives
implemented
Principles implemented
Process indicators of Program implementation
Implemented EU Directives for financial markets
Implementation of IOSCO, IAIS, Basel ІІІ,
EIOPA principles
Implementation of FX regulation and FX control
liberalization
Legislation on taxing transactions and services in
financial sector is changed
Changes are introduced to legislation on
enhancing financial and institutional independence
of financial sector regulators and functional
distribution
According to identified methodology
Expert assessment of implementation
Expert assessment of FX regulation and FX control
liberalization
Expert assessment of changes
-
Expert assessment of changes
-
Implementation of international reporting and
audit standards in financial sector
Implementation of single international standards
of e-document circulation, extending
administrative services, and e-communication
with market participants
Expert assessment of international reporting and
audit standards implementation
Expert assessment of single international standards
implementation as regards e-documents circulation
Free movement of capital
implemented
Changes introduced to
legislation
Changes introduced to
legislation
International standards
are implemented
according to expert
opinion
E-circulation of
documents is
implemented
40
VІ. Regulatory Work Plan
When implementing the Program, revision and amendments to some laws and normative and legal documents of Ukraine are made, including:
№ Legal documents to be changed/developed Reference
Measures
Date
to the
from
measure
1 The Law of Ukraine “On the National Bank of
А.1.1
Develop and implement monetary policy based on inflation
01
Ukraine”
targeting
January
2015
С.1.1
Ensure institutional independence of regulators by changing
corresponding legislation
С.1.2
Ensure financial independence of regulators and the DGF
1 January
2015
С.1.3
Enhance institutional control of regulators
01
January
С.2.3
Ensure institutional capability of regulators to implement
2015
monetary policy based on inflation targeting and flexible ER
regime
С.2.4
Enhance institutional capability of regulators to take effective
balanced decisions, and enhance internal controls
2 Decree of the Cabinet of Ministers of Ukraine
А.1.2
Develop and implement ER and FX policy base on flexible ER
1 July
“On the system of FC regulation and FX
regime
2015
control”
В.1.2
Upgrade legislation as regards ensuring free movement of
capital
3 The Law of Ukraine “On banks and banking
В.1.1
Upgrade legislation as regards ensuring equal competitive
1 January
activities”
conditions at financial markets
2015
В.1.3
Upgrade legislation as regards general regulation of financial
markets
В.3.1
Simulate consolidation of financial markets alongside
preserving competitiveness
В.3.6
Ensure further development of non-cash circulation to decrease
the share of cash circulation and develop retail non-cash
payments through e-payment means in Ukraine
В.4.1
Stimulate restructuring of arrears that can be rehabilitated
Date to
30 April 2015
31 December
2015
30 April 2015
30 September
2016
31 December
2015
41
№
Legal documents to be changed/developed
4
The Law of Ukraine “On financial services
and state regulation of financial services
markets”
5
The Law of Ukraine “On insurance” (new
edition)
Reference
Measures
to the
measure
С.1.4
Enhance institutional capacity of regulators through raising
efficiency of enforcement instruments
В.1.1
Upgrade legislation as regards ensuring equal competitive
conditions at financial markets
В.1.2
Upgrade legislation as regards ensuring free movement of
capital
В.1.3
Upgrade legislation as regards general regulation of financial
markets
В.2.1
Improve regulation and supervision systems as regards
identification, control, and downsizing the number of
transactions with related parties
В.2.2
Improve regulation and supervision systems as regards
identification of recapitalization needs of financial market
participants
В.2.4
Improve regulation and supervision (oversight) systems as
regards system-importantу financial market players operation
В.2.5
Improve regulation and supervision (oversight) systems as
regards implementation of international standards of financial
market supervision
В.3.3
Ensure accumulation and exchange of information on
borrowers credit history
В.5.5
Stimulate development of financial market intermediaries
В.5.7
Stimulate development of infrastructure to ensure efficient
accumulation and exchange of information on borrowers credit
history
В.5.9
Ensure consolidation and development of stock exchange
infrastructure
В.1.1
Upgrade legislation as regards ensuring equal competitive
conditions at financial markets
В.1.3
Upgrade legislation as regards general regulation of financial
markets
Date
from
Date to
01
September
2015
31 December
2016
01
January
2015
31 December
2015
42
№
6
Legal documents to be changed/developed
The Law of Ukraine “On credit unions”
7
The Law of Ukraine “On depository system
of Ukraine”
8
The Law of Ukraine “On joint investment
institutes”
9
The Law of Ukraine “On pawnbrokers and
pawnbrokers activities” (new)
10 The Law of Ukraine “On securities and stock
market”
Reference
Measures
to the
measure
В.2.1
Improve systems of regulation and supervision as regards
identification, control, and reduction of the number of
transactions with related parties
В.2.2
Improve regulation and supervision systems as regards
identification of recapitalization needs of financial market
participants
В.5.5
Stimulate development of financial market intermediaries
В.5.8
Stimulate development of a comprehensive insurance services
market
В.1.1
Upgrade legislation as regards ensuring equal competitive
conditions at financial markets
В.1.3
Upgrade legislation as regards general regulation of financial
markets
В.5.9
Conduct consolidation and development of stock exchange
infrastructure
D.2.2
Improve legislation as regards protection of consumers and
financial market investor rights
В.1.2
Upgrade legislation as regards ensuring free movement of
capital
В.3.1
Stimulate financial markets consolidation while keeping
competitiveness
В.1.1
Upgrade legislation as regards ensuring equal competitive
conditions at financial markets
В.1.3
Upgrade legislation as regards general regulation of financial
markets
В.1.3
Upgrade legislation as regards general regulation of financial
markets
В.2.1
Improve regulation and supervision systems as regards
identification, control and reduction of the number of
transactions with related parties
Date
from
Date to
01 March
2015
31 December
2016
1 April
2015
1 January
2015
1 July
2015
1 January
2015
01
January
2015
30 June 2017
1 July
2014 р.
1 January
2015
31 December
2016
30 September
2018
31 December
2016
31 December
2016
30
September 2018
31 October
2017
43
№
Legal documents to be changed/developed
Reference
Measures
to the
measure
В.2.5
Improve regulation and supervision (oversight) systems as
regards implementation of international supervision standards
at financial markets
В.5.1
Stimulate development of financial market derivatives
В.5.2
Stimulate development of financial market instruments
В.5.5
Stimulate development of financial market intermediaries
D.2.1
Raise standards of information disclosure to the benefit of
consumers and financial market investors
Improve legislation as regards protecting rights of consumers
and financial market investors
D.2.2
11 The Law of Ukraine “On state regulation of
securities market in Ukraine”
В.2.1
В.2.5
Improve regulation and supervision systems as regards
identification, control, and reduction of the number of
transactions with related parties
Improve regulation and supervision (oversight) systems as
regards implementation of international supervision standards
for financial markets
С.1.1
Ensure institutional independence of regulators through
introducing corresponding legislative changes
С.1.2
Ensure financial independence of regulators and the DGF
С.1.4
Ensure institutional capability of regulators through enhancing
efficiency of enforcement instruments
Date
from
Date to
1 April
2015
30 June 2017
1 January
2015
1 January
2015
1 January
2015
1 January
2015
1 January
2015
31 December
2015
30 June 2016
30 September
2016
30 June 2017
31 December
2016
1 January
2015
31 October
2017
1 April
2015
30 June 2017
1 April
2015
31 December
2016
1 January
2015
31 December
2015
1 April
2015
31 December
2016
44
№
Legal documents to be changed/developed
12 The Law of Ukraine “On shareholding
companies”
13
The Law of Ukraine “On payment systems
and money transfer (wire) in Ukraine”
Reference
Measures
to the
measure
С.2.2
Ensure institutional capability of regulators to support
implementation of international supervisory standards at
financial markets and to transfer from compliance based
supervision to risk based supervision
С.2.6
Enhance efficiency of counteracting corruption at financial
markets
Date
from
Date to
1 July
2015
31 December
2019
1 January
2015
30 June 2016
С.2.7
Enhance regulator efficiency as regards operating with problem
assets at financial market
1 April
2015
30 June 2016
В.3.7.
Stimulate increase in corporate governance levels for financial
market participants
1 April
2015
31 October
2017
D.2.1
Raise standards for information disclosure to the benefit of
consumers and financial market investors
1 January
2015
30 June 2017
D.2.2
Improve legislation as regards protecting rights of consumers
and financial market investors
1 January
2015
31 December
2016
В.3.5
Raise efficiency of the system to prevent and counteract money
laundering, financing terrorism, and proliferating weapons of
mass destruction though financial markets use
1 January
2015
30 June 2016
В.3.6
Facilitate further development of non-ash circulation to
decrease the share of cash circulation and development in
Ukraine of retail non-cash payments through the use of epayment means
Stimulate more effective functioning of available instruments
and financial market infrastructure
В.5.4
45
№
Legal documents to be changed/developed
14 The Law of Ukraine “On state registration of
legal entities and physical persons – economic
agents”
15 The Law of Ukraine “On derivatives” (new)
16 The Law of Ukraine “On non-state pension
provisioning”
Reference
Measures
to the
measure
В.3.6
Ensure further development of non-cash circulation with the
objective of decreasing the cash circulation share and to
develop in Ukraine retail non-cash payments through the use of
e-payment means
В.5.1
Stimulate development of financial market derivatives
В.1.3
В.5.3
В.5.8
17 Civil Code of Ukraine
В.3.1
В.3.6
В.5.4
18 The Law of Ukraine “On collector agencies
activities in Ukraine”
19 The Law of Ukraine “On private enforcers
(new)
20 The Law of Ukraine “On organization,
formation and circulation of credit histories”
21 The Law of Ukraine “On compulsory state
pension insurance”
В.4.1
В.5.6
В.5.6
В.5.7
В.1.3
В.5.3
В.5.8
Modernize legislation as regards general regulation of financial
markets
Stimulate development of cumulative pension provisioning
Stimulate comprehensive development of insurance services
market
Stimulate consolidation of financial markets at the backdrop of
keeping competitiveness
Stimulate further development of non-cash circulation to reduce
the share of cash circulation and to develop retail non-cash
payments sing e-payment means in Ukraine
Stimulate more efficient use of available financial market
instruments
Stimulate restructuring of arrears that can be rehabilitated
Stimulate development of infrastructure ensuring efficient
management of problem assets
Stimulate development of infrastructure ensuring efficient
management of problem assets
Stimulate development of infrastructure ensuring efficient
accumulation and exchange of information on borrowers credit
history
Upgrade legislation as regards general regulation of financial
markets
Stimulate development of accumulative pension provisioning
Stimulate comprehensive development of insurance services
market
Date
from
Date to
1 April
2015
31 December
2016
1 January
2015
1 May
2015
31 December
2015
30 September
2018
1 January
2015
31 December
2015
1 April
2015
1 April
2015
1 January
2015
31 December
2016
31 December
2016
31 December
2016
1 April
2015
30 June 2016
46
№
Legal documents to be changed/developed
22 The Law of Ukraine “On compulsory
insurance of civil and legal liability of
automobile and other vehicle owners”
Reference
Measures
to the
measure
В.5.8
Stimulate comprehensive development of insurance services
market
В.6.1
Improve taxation of transactions related to enforcement of
problem arrears
В.6.2
Harmonize taxation systems of financial market instruments
В.6.3
Ensure tax stimulation of financial market instruments
development
В.4.1
Stimulate restructuring of arrears that can be rehabilitated
24 The Law of Ukraine “On reinstating solvency
of debtors or recognizing them as bankrupts”
В.4.3
Introduce effective mechanism of protecting creditor rights
25 The Law of Ukraine “On notary offices”
В.4.3
Introduce effective mechanism of protecting creditor rights
26 The Law of Ukraine “On enforced
proceedings”
В.4.3
Introduce effective mechanism of protecting creditor rights
27 The Law of Ukraine “On collateral”
В.4.3
Introduce effective mechanism of protecting creditor rights
28 The Law of Ukraine “On mortgage”
В.4.3
Introduce effective mechanism of protecting creditor rights
23 Tax Code of Ukraine
Date
from
Date to
1 April
2015
31 серпня 2016
01
January
2015
01
January
2015
01
January
2015
01
January
2015
01
January
2015
01
January
2015
01
January
2015
01
January
2015
01
January
2015
31 December
2015
31 серпня 2016
31 December
2015
31 December
2015
31 December
2015
31 December
2015
31 December
2015
31 December
2015
31 December
2015
47
№
Legal documents to be changed/developed
29 Code of Ukraine on administrative violations
Reference
Measures
to the
measure
С.2.6
Ensure effectiveness of counteracting corruption at financial
markets
30 Criminal Code of Ukraine
С.2.6
Ensure effectiveness of counteracting corruption at financial
markets
31 The Law of Ukraine “On the system of
guaranteeing deposits of physical persons”
С.2.7
Ensure effectiveness of regulators working with problem assets
at financial markets
Proactive attitude to protect rights of consumers and financial
market investors
Implement standards of reporting and information exchange
ensuring efficient integration to the EU financial market
Stimulate development of financial market instruments
Improve legislation as regards rights protection of consumers
and financial market investors
Raise standards of disclosing information in the interest of
consumers and financial market investors
Improve legislation as regards rights protection of consumers
and financial market investors
Proactive attitude to protect rights of consumers and financial
market investors
Raise standards of disclosing information in the interest of
consumers and financial market investors
Improve legislation as regards rights protection of consumers
and financial market investors
Proactive attitude to protect rights of consumers and financial
market investors
Raise standards of disclosing information in the interest of
consumers and financial market investors
Improve legislation as regards rights protection of consumers
and financial market investors
D.2.3
32 The Law of Ukraine “On electronic digital
signature”
33 The Law of Ukraine “On promissory notes
circulation in Ukraine”
34 The Law of Ukraine “On protection of
consumer rights”
C.4.1
B.5.2
D.2.2
D.2.1
D.2.2
D.2.3
35 The Law of Ukraine “On consumer credits”
D.2.1
D.2.2
D.2.3
36 The Law of Ukraine “On Financial
Ombudsman Office”
D.2.1
D.2.2
Date
from
Date to
01
January
2015
01
January
2015
01
January
2015
30 June 2016
1 July
2015
1 January
2015
30 June 2018
1 January
2015
31 December
2015
1 January
2015
31 December
2015
1 January
2015
31 December
2015
30 June 2016
30 June 2016
30 June 2016
48
№
Legal documents to be changed/developed
37 The Law of Ukraine “On bank of financial
pyramids in Ukraine” (new)
Reference
Measures
to the
measure
D.2.3
Proactive attitude to protecting rights of consumers and
financial market investors
D.2.3
Proactive attitude to protecting rights of consumers and
financial market investors
38 The Law of Ukraine “On financial leasing”
В.5.4
39 The Law of Ukraine “On credit rating
agencies”
40 On compensation schemes to investors (new)
В.5.10
D.2.2
Stimulate more effective functioning of available instruments
and infrastructure of financial markets
Ensure development of rating agencies institute
Improve legislation as regards rights protection of consumers
and financial market investors
Date
from
Date to
01
January
2015
1 January
2015
1 January
2015
1 January
2015 р.
31 December
2015
30 June 2016
31 December
2016
31 December
2017 р.
49
№
1
The list of the EU legislation aimed at financial market to be implemented in line with Association Agreement between Ukraine and the EU
Name of the EU legal document
Reference
Measures
Date of
Timing to
to the
commencement implement
measure
Directive № 2006/48/EU of the EU
Parliament and of the Council of June 14 ,
2006, relating to the taking up and pursuit of
the business of credit institutions (with
changes and amendments) (hereinafter –
Directive 2006/48/EU)
В.1.1
В.1.3
В.2.2
В.2.4
В.2.5
В.3.2
В.3.6
В.4.4
В.5.2
С.2.2
Modernize legislation as regards ensuring equal competitive
conditions at financial markets
Modernize legislation as regards general regulation of
financial markets
Improve systems of regulation and supervision as regards
identification of recapitalization needs of financial market
participants
Improve systems of regulation and supervision (oversight) as
regards functioning of system-important financial market
players
Improve systems of regulation and supervision (oversight) as
regards implementation of international standards of
supervision over financial markets
Ensure transparency of reporting and transactions of financial
market participants
Ensure further development of non-cash circulation to reduce
the share of cash circulation and to develop retail non-cash
payment system in Ukraine through using e-payment means
Stimulate more effective functioning of available instruments
and financial market infrastructure
Stimulate development of financial market instruments
Ensure institutional capability of regulators to support
implementation of international supervision standards at
financial markets and to move from compliance based
supervision to risk based supervision
1 January 2015
до 2020
(according
to
schedule)
50
№
Name of the EU legal document
Reference
to the
measure
2
Commission Directive № 2007/18/EU of
March 27, 2007, on introducing changes to
Directive № 2006/48/EU of the EU
Parliament and of the Council on inclusion
and exclusion certain institutions outside its
authority as regards multilateral development
banks
Directive № 2007/44/EU of the EU
Parliament and of the Council of September
5, 2007, on introducing changes to Council
Directive № 92/49/ЄЕС and to Directives
№№ 2002/83/EU, 2004/39/EU, 2005/68/EU
and 2006/48/EU on procedures for prudential
assessment of purchase and share increase in
financial sector
Directive № 2006/49/EU of the EU
Parliament and of the Council of June 14,
2006, on capital adequacy of investment
companies and credit institutions (revised)
(hereinafter– Directive 2006/49/EU)
В.2.5
Improve systems of regulation and supervision (oversight) as
regards implementation of international supervision standards
at financial markets
1 April 2015
before
2019
В.1.3
Modernize legislation as regards general regulation of
financial markets
Improve systems of regulation and supervision (oversight) as
regards implementation of international supervision standards
at financial markets
1 April 2015
before
2020
Modernize legislation as regards general regulation of
financial markets
Improve systems of regulation and supervision as regards
identification of recapitalization needs of financial market
participants
Improve systems of regulation and supervision (oversight) as
regards implementation of international supervision standards
at financial markets
Modernize legislation as regards general regulation of
financial markets
Improve systems of regulation and supervision (oversight) as
regards implementation of international supervision standards
at financial markets
1 January 2015
before
2020
(according
to
schedule)
1 January 2015
before
2019
3
4
В.2.5
В.1.3
В.2.2
В.2.5
5
Directive № 2002/87/EU of the EU
Parliament and of the Council of December
16, 2002, on the supplementary
supervision of credit institutions,
В.1.3
В.2.5
Measures
Date of
Timing to
commencement implement
51
№
Name of the EU legal document
insurance undertakings and investment
firms in a financial conglomerate, and on
6
introducing changes to the Council Directives
№№ 73/239/ЄЕС, 79/267/ЄЕС, 92/49/ЄЕС,
92/96/ЄЕС, 93/6/ЄЕС та 93/22/ЄЕС, and to
Directives of the EU Parliament and Council
№№ 98/78/EU і 2000/12/EU
Directive № 2009/110/EU of the EU
Parliament and of the Council of September
16, 2009, on initiating and conducting
activities to operate e-money and prudential
supervision over the above
Reference
to the
measure
С.2.2
Ensure institutional capability of regulators to support
implementation of international supervision standards at
financial markets and to move from compliance based
supervision to risk based supervision
В.2.4
Improve systems of regulation and supervision (oversight) as
regards functioning of system-important financial market
players
Improve systems of regulation and supervision (oversight) as
regards implementation of international supervision standards
at financial markets
Ensure further development of non-cash circulation to reduce
the share of cash circulation and to develop retail non-cash
payment system in Ukraine through using e-payment means
Ensure financial independence of regulators and the DGF
Improve legislation as regards protection of consumer and
financial market investors rights
Proactive attitude to protect rights of consumers and financial
market investors
Ensure transparency of reports and transactions of financial
market participants
Implement standards of reporting and information exchange to
ensure efficient integration into the EU financial market
Ensure transparency of reports and transactions of financial
market participants
Implement standards of reporting and information exchange to
ensure efficient integration into the EU financial market
В.2.5
В.3.6
7
Directive № 94/19/EU of the EU Parliament
and of the Council of May 30. 1994, on the
system of guaranteeing deposits
С.1.2
D.2.2
D.2.3
8
9
Directive of the EU Council № 86/635/EEC
of December 8, 1986, on annual reporting and
consolidated reporting of banks and other
financial institutions
Directive № 2001/65/EU of the EU
Parliament and of the Council of September
27, 2001, on introducing changes to
Directives №№ 78/660/ЄЕС, 83/349/ЄЕС
and 86/635/ЄЕС on rules to verify annual
Measures
В.3.2
С.4.1
В.3.2
С.4.1
Date of
Timing to
commencement implement
1 January 2015
before
2019
1 January 2015
before
2019
1 January 2015
before
2019
1 January 2015
before
2019
52
№
10
11
12
Name of the EU legal document
consolidated reporting of certain types of
companies, banks, and other financial
institutions and insurance companies
Directive of the EU parliament and of the
Council № 2003/51/EU of June 18, 2003, on
introducing changes to Directives
№№ 78/660/ЄЕС, 83/349/ЄЕС, 86/635/ЄЕС
and 91/674/ЄЕС on annual and consolidated
reporting of certain types of companies,
banks, and other financial institutions and
insurance companies
Directive № 2006/46/EU of the EU
Parliament and of the Council of June
14, 2006 on introducing changes to the EU
Council Directives EU № 78/660/ЄЕС on
annual reports of certain types of companies,
№ 83/349/EEC on consolidated reports,
86/635/EEC on annual reports and
consolidated reports of banks and other
financial institutions, and № 91/674/EEC on
annual reports and consolidated reports of
insurance companies
Directive of the EU Council № 89/117/EEC
of February 13, 1989, on the obligations of
branches established in a member state of
credit institutes and financial institutions
having their head offices outside that
Member State regarding the publication
of annual accounting documents
Reference
to the
measure
Measures
В.3.2
Ensure transparency of reports and transactions of financial
market participants
Implement standards of reporting and information exchange to
ensure efficient integration into the EU financial market
1 January 2015
before
2019
Ensure transparency of reports and transactions of financial
market participants
Implement standards of reporting and information exchange to
ensure efficient integration into the EU financial market
1 January 2015
before
2019
Modernize legislation as regards general regulation of
financial markets
Ensure transparency of reports and transactions of financial
market participants
Implement standards of reporting and information exchange to
ensure efficient integration into the EU financial market
1 January 2015
before
2019
С.4.1
В.3.2
С.4.1
В.1.3
В.3.2
С.4.1
Date of
Timing to
commencement implement
53
№
Name of the EU legal document
Reference
to the
measure
13
Directive № 2001/24/EU of the EU
Parliament and of the Council of April
4, 2001 on the reorganisation and winding
В.2.2
14
up of credit institutions
В.2.3
Directive 98/26/EU of the EU Parliament and
of the Council of May 19, 1998, on settlement
finality for securities through payment and
settlement systems
В.1.1
В.2.4
В.2.5
В.3.6
В.5.9
15
Directive 2007/64/EU of the EU Parliament
and of the Council of November 13, 2007, on
payment (settlement) services at internal
market, introducing changes to the Directives
97/7/EU, 2002/65/EU, 2005/60/EU and
2006/48/EU, and cancelling Directive
97/5/EU
В.2.4
В.2.5
В.3.6
Measures
Improve regulation and supervision systems as regards
identification of recapitalization needs of financial market
participants
Improve regulation and supervision systems as regards
removing ineffective financial market participants from the
market
Modernize legislation as regards ensuring equal competitive
conditions at financial markets
Improve systems of regulation and supervision (oversight) as
regards functioning of system-important financial market
players
Improve regulation and supervision (oversight) systems as
regards implementation of international supervision standards
over financial markets
Ensure further development of non-cash circulation to reduce
the share of cash circulation and to develop retail non-cash
payment system in Ukraine through using e-payment means
Ensure consolidation and development of stock exchange
infrastructure
Improve systems of regulation and supervision (oversight) as
regards functioning of system-important financial market
players
Improve regulation and supervision (oversight) systems as
regards implementation of international supervision standards
over financial markets
Ensure further development of non-cash circulation with the
objective of decreasing the cash circulation share and to
develop retail non-cash payments in Ukraine through the use
of e-payment means
Date of
Timing to
commencement implement
1 January 2015
before
2019
1 January 2015
before
2020
1 January 2015
before
2020
54
№
16
Name of the EU legal document
Directive 2005/60/EU of the EU Parliament
and of the Council of October 26, 2005, on
the prevention of the use of the financial
system for the purpose of money
laundering and terrorist financing
17
Commission Directive 2006/70/EU of August
1, 2006, laying down implementing
Reference
to the
measure
В.3.5
С.2.2
В.1.3
Measures
Date of
Timing to
commencement implement
Enhance efficiency of the system to prevent and counteract
money laundering, terrorism financing, and financing
proliferation of weapons of mass destruction through the use
of financial markets
Ensure institutional capability of regulators to support
implementation of international supervision standards at
financial markets and to move from compliance based
supervision to risk based supervision
Modernize legislation as regards general regulation of
financial markets
1 July 2015
before
2017
1 January
2015
before
2017
Improve systems of regulation and supervision (oversight) as
regards functioning of system-important financial market
players
Improve regulation and supervision (oversight) systems as
regards implementation of international supervision standards
over financial markets
Ensure further development of non-cash circulation to reduce
the share of cash circulation and to develop retail non-cash
payment system in Ukraine through using e-payment means
1 January 2015
before
2017
measures for Directive 2005/60/ЄС of the
European Parliament and of the Council
as regards the definition of politically
exposed person and the technical criteria
for simplified customer due diligence
procedures and for exemption on grounds
of a financial activity conducted on an
occasional or very limited basis
18
Corrigendum to Regulation (EC) No
1781/2006 of the European Parliament and of
the Council of 15 November 2006 on
information on the payer accompanying
transfers of funds
В.2.4
В.2.5
В.3.6
55
№
Name of the EU legal document
19
Directive 2004/39/EC of the European
Parliament and of the Council of 21 April
2004 on markets in financial instruments
amending Council Directives 85/611/EEC
and 93/6/EEC and Directive 2000/12/EC
of the European Parliament and of the
Council and repealing Council
Directive 93/22/EEC
В.2.5
Improve regulation and supervision (oversight) systems as
regards implementation of international supervision standards
over financial markets
1 April 2015
before
2019
20
Commission Directive № 2006/73/EU of
August 10, 2006, on implementing Directive
№ 2004/39/EU of the EU Parliament and of
the Council on organizational requirements
and operational conditions for investment
companies, and on identifying terminology
for the purpose of the mentioned Directive.
Commission Regulation (EU) № 1287/2006
of August 10, 2006, on implementation of
the Directive № 2004/39/EU of the EU
Parliament and of the Council as regards
В.2.5
Improve regulation and supervision (oversight) systems as
regards implementation of international supervision standards
over financial markets
1 April 2015
before
2019
Improve regulation and supervision (oversight) systems as
regards implementation of international supervision standards
over financial markets
Ensure transparency of reports and transactions of financial
market participants
Implement standards of reporting and information exchange to
ensure efficient integration into the EU financial market
1 January 2015
before
2019
Improve legislation as regards protecting rights of consumers
and financial market investors
1 January 2015
before
2019
21
recordkeeping obligations for investment
firms, transaction reporting, market
transparency, admission of financial
instruments to trading, and defined terms
for the purposes of that Directive.
22
Directive № 97/9/EU of the EU Parliament
and of the Council of March 3, 1997, on
investor compensation schemes.
Reference
to the
measure
В.2.5
В.3.2
С.4.1
D.2.2
Measures
Date of
Timing to
commencement implement
56
№
Name of the EU legal document
Reference
to the
measure
23
Directive № 2003/6/EU of the EU Parliament
and of the Council of January 28, 2003, on
insider dealings and market manipulation.
В.2.1
Commission Directive № 2004/72/EU of
April 29, 2004, on implementing the
Directive № 2003/6/EU of the EU Parliament
and of the Council as regards accepted
Date of
Timing to
commencement implement
Improve systems of regulation and supervision to identify,
control, and reduce the number of transactions with related
parties
Enhance effectiveness of counteracting corruption at financial
markets
1 January 2015
before
2019
С.2.6
Enhance effectiveness of counteracting corruption at financial
markets
1 January 2015
before
2019
С.2.6
Enhance effectiveness of counteracting corruption at financial
markets
1 January 2015
before
2019
С.2.6
Enhance effectiveness of counteracting corruption at financial
markets
1 January 2015
before
2019
С.2.6
24
Measures
market practices, the definition of inside
information in relation to derivatives on
commodities, the drawing up of lists of
insiders, the notification of managers'
transactions and the notification of
suspicious transactions.
25
Commission Directive
№ 2003/124/EU December 22, 2003, on
implementing the Directive № 2003/6/EU of
the EU Parliament and of the Council as
regards the definition and public
disclosure of inside information and the
definition of market manipulation.
26
Commission Directive
№ 2003/125/EU December 22, 2003, on
implementing the Directive № 2003/6/EU of
the EU Parliament and of the Council as
regards the fair presentation of investment
recommendations and the disclosure of
57
№
Name of the EU legal document
Reference
to the
measure
Measures
Date of
Timing to
commencement implement
conflicts of interest.
27
Commission Regulation (EU) № 2273/2003
of December 22, 2003, on implementing the
Directive № 2003/6/EU of the EU Parliament
and of the Council as regards exemptions
С.2.6
Enhance effectiveness of counteracting corruption at financial
markets
В.5.10
1 January 2015
before
2019
Ensure development of a rating agency institute
1 April 2015
before
2019
В.1.2
Update legislation as regards ensuring free movement of
capital
1 July 2015
before
2019
В.1.2
Update legislation as regards ensuring free movement of
capital
1 July 2015
before
2019
В.5.2
Stimulate development of financial market instruments
1 January 2015
before
2020
for buy-back programmes and
stabilisation of financial instruments.
28
29
Regulation (EU) № 1060/2009 of the EU
Parliament and of the Council of September
16, 2009, on Credit Rating Agencies.
Directive № 2009/65/EU of the EU
Parliament and of the Council of July 13,
2009, on the coordination of laws,
regulations and administrative provisions
relating to undertakings for collective
investment in transferable securities
30
(UCITS) (revised).
Commission Directive № 2007/16/EU
of March, 19, 2007, on implementing the
Directive of the Council № 85/611/EEC on
the coordination of laws, regulations and
administrative provisions relating to
undertakings for collective investment in
transferable securities (UCITS), to explain
31
certain definitions
Directive № 2002/47/EU of the EU
Parliament and of the Council of June 06,
2002, on financial collateral arrangements
58
№
Name of the EU legal document
Reference
to the
measure
32
Directive № 2009/44/EU of the EU
Parliament and of the Council of May
6, 2009, introducing changes to the Directive
№ 98/26/EU on settlement finality in
payment and settlement systems for
securities, and the Directive № 2002/47/EU
on financial provisions regarding related
systems and credit claims
Directive № 2008/48/EU of the EU
Parliament and of the Council of April 23,
2008, on credit agreements for consumers,
and repealing the Council Directive
№ 87/102/EEC
В.1.1
Update legislation as regards ensuring equal competitive
conditions at financial markets
В.5.9
Ensure consolidation and development of stock market
infrastructure
D.1.1
Implement comprehensive program of raising financial
literacy of Ukrainian people, including through giving
incentives to savings culture
Improve legislation as regards protecting rights of consumers
and financial market investors
Proactive attitude to protect rights of consumers and financial
market investors
Ensure transparency of reports and transactions of financial
market participants
33
D.2.2
D.2.3
34
35
Regulation (EU) № 1606/2002 of the EU
Parliament and of the Council of July 19,
2002, on the application of international
accounting standards
Directive № 2009/138/EU of November 25,
2009, on the taking-up and pursui of the
business of insurance and re-insurance
(Solvency II)
В.3.2
С.4.1
Implement standards of reporting and information exchange to
ensure efficient integration into the EU financial market
В.1.3
Proactive attitude to protect rights of consumers and financial
market investors
Improve regulation and supervision systems as regards
identification of recapitalization needs of financial market
participants
Stimulate comprehensive development of insurance services
market
Proactive attitude to protect rights of consumers and financial
market investors
В.2.2
В.5.8
36
Directive № 2009/103/EU of September 16,
2009, relating to insurance of civil liability in
Measures
В.1.3
Date of
Timing to
commencement implement
1 July 2015
before
2020
1 January 2015
before
2017
1 January 2015
before
2017
01 January 2015
before
2019
01 April 2015
before
2017
59
№
37
Name of the EU legal document
respect to the use of motor vehicles, and the
enforcement of the obligation to insuring
against such liability
Directive № 91/674/EEC of December 19,
1991, on the annual accounts and
Reference
to the
measure
Measures
Date of
Timing to
commencement implement
В.5.8
В.1.3
Stimulate comprehensive development of insurance services
market
Proactive attitude to protect rights of consumers and financial
market investors
01 January 2017
before
2019
01 January 2015
before
2017
1 July 2015
before
2017
1 January 2015
before
2019
consolidated accounts of insurance
undertakings
38
39
40
Directive № 2002/92/EU of the EU
Parliament and of the Council of December 9,
2002, on intermediaries in insurance sector
В.1.3
Directive № 2003/41/EU of the EU
Parliament and of the Council of June 3,
2003, on operation of pension provisioning
offices and ensuring supervision over the
above
European Commission Directive
№2007/14/EU of March 08, 2007, laying
В.5.3
В.5.5
D.2.1
Proactive attitude to protect rights of consumers and financial
market investors
Stimulate development of financial market intermediaries
institute
Stimulate development of accumulative pension provisioning
Enhance standards of disclosing information in the interests of
consumers and financial market investors
down detailed rules for the
implementation of certain provisions of
Directive 2004/109/EC on the
harmonisation of transparency
requirements in relation to information
about issuers whose securities are
admitted to trading on a regulated market
60
№
41
Name of the EU legal document
Directive № 2001/34/EU of the EU
Parliament and of the Council of May 28,
2001, on the admission of securities to
Reference
to the
measure
Measures
Date of
Timing to
commencement implement
В.2.5
Improve regulation and supervision (oversight) systems as
regards implementation of international supervision standards
over financial markets
1 April 2015
before
2019
В.3.2
Ensure transparency of reports and transactions of financial
market participants
1 January 2015
before
2019
official stock exchange listing and on
information to be published on those
securities, with amendments introduced by
the Directive 2003/71/EU of the EU
Parliament and Council of November 4,
2003, on the prospectus to be published
when securities are offered to the public
or admitted to trading, and the Directive
2004/109/EU of the EU Parliament and of the
Council of December 15, 2004, on
harmonization of transparency requirements
as regards information on issuers whose
securities are admitted to be traded at
regulated markets
42
Commission Regulation (EU) № 1569/2007
of December 21, 2007, establishing a
mechanism for the determination of
equivalence of accounting standards
applied by third country issuers of
securities pursuant to
Directives 2003/71/EC and 2004/109/EC
of the European Parliament and of the
Council
61
№
43
Name of the EU legal document
Directive 2003/71/EU of the EU Parliament
and of the Council of November 4, 2003, on
Reference
to the
measure
Measures
Date of
Timing to
commencement implement
D.2.1
Enhance standards of disclosing information in the interests of
consumers and financial market investors
1 January 2015
before
2019
D.2.1
Enhance standards of disclosing information in the interests of
consumers and financial market investors
1 January 2015
before
2019
the prospectus to be published when
securities are offered to the public or
admitted to trading, considering
44
amendments introduced by the Directive
№ 2008/11/EU of the EU Parliament and of
the Council of March 11, 2008
Commission regulation (EU) №809/2004 of
April 29, 2004, on implementing the
Directive of the EU Parliament and of the
Council 2003/71/EU on information
prospectus, including information on
references, publication of prospectus and
dissemination of advertisement with
introduced amendments:
by Commission Regulation (EU) №
1787/2006 of December 4, 2006, introducing
amendments to the Commission Regulation
(EU) № 809/2004 on implementing Directive
№ 2003/71/EU of the EU Parliament and of
the Council on information in prospectus, and
on its format incorporating references and
publications of such mentioned prospectus
and advertisement dissemination;
by Commission Regulation (EU) № 211/2007
of February 27, 2007, introducing changes to
Regulation (EU) № 809/2004 on
implementing the Directive № 2003/71/EU of
the EU Parliament and of the Council on
62
№
45
Name of the EU legal document
financial information in prospectus where the
issuer has complete financial history or has
substantial financial liabilities;
by Commission Regulation (EU) №
1289/2008 of December 12 , 2008,
introducing changes to the Commission
Regulation (EU) № 809/2004 on
implementing the Directive № 2003/71/EU of
the EU Parliament and of the Council on
elements relating to prospectus and
advertisement
Directive 2004/109/EU of the EU Parliament
and of the Council of December 15, 2004, on
Reference
to the
measure
Measures
Date of
Timing to
commencement implement
D.2.1
Enhance standards of disclosing information in the interests of
consumers and financial market investors
1 January 2015
before
2019
В.2.1
Improve systems of regulation and supervision to identify,
control, and reduce the number of transactions with related
parties
1 January 2015
before
2019
В.3.1
Stimulate consolidation of financial markets alongside with
keeping competitiveness ї
1 January 2015
before
2019
the harmonisation of transparency
requirements in relation to information
about issuers whose securities are
admitted to trading on a regulated market,
46
and introducing changes to the Directive
2001/34/EU
Commission Directive № 2010/43/EU of July
1, 2010, on implementing the Directive №
2009/65/EU of the EU Parliament and of the
Council as regards organisational
requirements, conflicts of interest,
conduct of business, risk management and
content of the agreement between a
depositary and a management company
47
Commission Directive № 2010/44/EU of July
1, 2010, on implementing the Directive №
2009/65/EU of the EU Parliament and of the
63
№
Name of the EU legal document
48
Council on certain conditions of merging
funds, master-feeder structures, and
notification procedures
Commission Regulation (EU) № 583/2010 of
July 1, 2010, on implementing the Directive
№ 2009/65/EU of the EU Parliament and of
the Council as regards key investor
Reference
to the
measure
В.3.7
Measures
Stimulate enhanced level of corporate management of
financial market participants
Date of
Timing to
commencement implement
1 April 2015
before
2019
1 July 2015
before
2019
information and conditions to be met
when providing key investor information
or the prospectus in a durable medium
other than paper or by means of a website
49
Commission Regulation (EU) № 584/2010 of
July 1, 2010, on implementing the Directive
№ 2009/65/EU of the EU Parliament and of
the Council as regards the form and
В.1.2
Update legislation as regards ensuring free movement of capital
content of the standard notification letter
and UCITS attestation, the use of
electronic communication between
competent authorities for the purpose of
notification, and procedures for on-thespot verifications and investigations and
the exchange of information between
competent authorities
64
VІI. Comparison of Program Measures with International and National Agreements and Programs
№
1
2
3
4
5
6
Requirements according to international and national agreements and programs
Reference
Agreement
to
Objectives
Essence
agreement
IMF
A.5
Monetary and FX
Monetary policy shall be focused at
policy
bringing inflation to single digits before
end 2016
IMF
A.6
Monetary and FX
Monetary policy shall be formulated
policy
according to inflation objectives based on
inflation targeting of monetary aggregates
IMF
A.7
Monetary and FX
Monetary program shall support signals
policy
that arrive depending on the monetary
policy stance, and shall assist in guiding
inflation expectations
IMF
A.8
Monetary and FX
Adhere to flexible FX regime serving the
policy
buffer to counteract external shocks. At
the same time, we aim to reinstate,
gradually, FX reserves buffers
IMF
A.11
Monetary and FX
We shall continue our efforts to complete
policy
the transfer to inflation targeting
IMF
B.13
Financial sector
Modernization of regulation and
policies
supervision systems to identify and cut
Modernization of
down credits extended to related parties
regulation and
supervision
systems to identify
and reduce credits
(loans) extended to
related parties
Reform measures allowing to meet requirements
Reference
to
Measures
measures
A.1.1.
A.1.1. Develop and implement monetary policy
A.1.2.
based on inflation targeting
С.2.3.
A.1.2. Develop and implement FX policy based
C.2.5.
on flexible ER regime
С.2.3. Ensure institutional capacity of regulators
to implement monetary policy based on inflation
targeting and flexible ER regime
C.2.5. Enhance communication efficiency of
regulators with consumers and financial market
participants
В.2.1.
С.2.6.
В.2.1. Improve regulation and supervision
systems as regards identification, control over and
reduction of transactions with related parties
С.2.6. Enhance efficiency of counteracting
corruption at financial markets
65
№
7
Requirements according to international and national agreements and programs
Reference
Agreement
to
Objectives
Essence
agreement
IMF
B.14
Financial sector
We also take action at some other fronts
policies
of supervision and regulation aiming to
Modernization of
strengthen supervision (oversight) over
regulation and
bank risks with the IMF support
supervision
systems to identify
and reduce credits
(loans) extended to
related parties
8
IMF
B.15
9
IMF
B.16
Financial sector
policies
Upgrading our
strategy on bank
capitalization
Financial sector
policies
Upgrading our
strategy on bank
capitalization
We revised our strategy of removing
problem banks from the market to
implement it (the strategy) alongside with
gradual reduction of credits extended to
related parties
Banks failing to perform their
recapitalization plans shall be removed
from the market
Reform measures allowing to meet requirements
Reference
to
Measures
measures
B.2.2.
B.2.2. Improve systems of regulation and
B.2.4.
supervision as regards identification of
B.2.5.
recapitalization needs of the market players
C.2.2.
B.2.4. Improve regulation and supervision
(oversight) systems as regards functioning of the
system-important financial market players B.2.5.
Improve regulation and supervision (oversight)
systems as regards implementing international
supervision standards over financial markets
C.2.2. Ensure institutional capacity of regulators
to support implementation of international
supervision standards at financial markets, and to
move from compliance based supervision to risk
based supervision
B.2.3.
B.2.3. Improve regulation and supervision
C.2.7.
systems as regards removing inefficient financial
market participants from the market.
C.2.7. Enhance regulator efficiency when
working with problem assets at financial market
66
№
10
Requirements according to international and national agreements and programs
Reference
Agreement
to
Objectives
Essence
agreement
IMF
B.19
Financial sector
We shall ensure efficiency of the system
policies Enforcing to resolve negatively classified credits
bank capacity to
issue.
resolve problem
loans issues
11
IMF
E.32
12
IMF
A.9
Governance,
transparency, and
business climate
Improving
normative and
legal framework of
the National AntiCorruption Bureau
functioning
(NACB).
Monetary and FX
policy
Improve normative and legal basis as
regards counteracting money laundering,
and ensure cooperation among the
NACB, NBU, and State Financial
Monitoring
To strengthen institutional foundations
and efficiency of the NBU, we shall
develop Draft Law “On the National
Bank of Ukraine” within the framework
of consultations with the IMF before end
February 2015
Reform measures allowing to meet requirements
Reference
to
Measures
measures
B.5.6.
B.5.6. Stimulate development of infrastructure
B.5.7.
ensuring effective management of problem assets
B.6.1.
B.5.7. Stimulate development of infrastructure
B.4.1.
ensuring effective accumulation and exchange of
B.4.2.
information on borrowers credit history
B.4.3.
B.6.1. Improve taxation systems for transactions
related to enforcing problem arrears
B.4.1. Stimulate restructuring of arrears that can
be rehabilitated
B.4.2. Enhance efficiency of operating problem
and non-core assets, including in nationalized
banks
B.4.3. Implement effective mechanism of creditor
rights protection
B.3.5.
B.3.5. Enhance efficiency of the system to
C.2.2.
prevent and counteract money laundering,
terrorism financing, and financing proliferation of
mass destruction weapons through financial
markets
C.2.2. Ensure institutional capability of regulators
to implement international supervision standards
at financial markets and to move from
compliance based supervision to risk based
supervision
C.1.1.
C.1.1. Ensure institutional independence of
C.1.2.
regulators through changes of corresponding
C.1.3.
legislation
C.1.2. Ensure financial independence of
regulators and the DGF
C.1.3. Enhance institutional control of regulators
67
№
13
Requirements according to international and national agreements and programs
Reference
Agreement
to
Objectives
Essence
agreement
IMF
A.10
Monetary and FX
Restructuring of the NBU institutional
policy
structure as regards:
a. Defining and implementing monetary
policy;
b. Communications.
14
IMF
B.18
15
IMF
III
16
IMF
17
18
Reform measures allowing to meet requirements
Reference
to
Measures
measures
С.2.3.
С.2.3. Ensure institutional capability of regulators
C.2.5.
to implement monetary policy based on inflation
targeting and flexible ER regime
C.2.5. Raise effectiveness of regulator
communications with consumers and financial
market participants
B.4.2.
B.4.2. Raise efficiency of work with problem and
C.2.7.
non-core assets, including nationalized banks.
C.3.1.
C.2.7. Raise efficiency of regulators as regards
working with problem assets at financial market
C.3.1. Enhance coordination among regulators of
financial market
Financial sector
policies
Improve
reinstating
economic value of
assets and official
investigation of
insolvent banks
Safeguard
mechanisms
We shall continue improving prospects to
revive economic value of assets and
accounting of the DGF, as well as to
identify inadequate banking practices in
insolvent banks
NBU governance and autonomy
С.1.3.
C.2.4.
III
Safeguard
mechanisms
NBU internal control mechanisms
C.2.4.
EU
IV.
Chapter 6:
Financial
services
New financial
services
B.1.1.
EU
IV.
Chapter 6:
Financial
services
Clearing and
payment systems
Ensure possibility for EU financial
service providers to extend financial
services similar to those potentially
extended to own suppliers of financial
services
Ensure access to payment and clearing
systems operated by state (public)
companies to EU providers of financial
services set up in Ukrainian territory, and
C.1.3. Tighten institutional control of regulators
C.2.4. Increase institutional capacity of regulators
to take balanced effective decisions, and enhance
internal control
C.2.4. Enhance institutional capacity of regulators
to take effective balanced decisions and enhance
internal controls
B.1.1. Update legislation as regards ensuring
equal competition conditions at financial markets
68
№
19
20
21
22
23
Requirements according to international and national agreements and programs
Reform measures allowing to meet requirements
Reference
Reference
Agreement
to
Objectives
Essence
to
Measures
agreement
measures
to ensure their access to official financing
and refinancing mechanisms that are
accessible under ordinary (usual)
conditions of doing business, except
access to the mechanism of the last resort
creditor
EU
IV.
Capital flows
Ensure free flow of capital related to
B.1.2.
B.1.2. Update legislation as regards ensuring free
Chapter 7
- inflow of direct investment and their
movement (flow) of capital
Current
repatriation
payments
- extension of credits that relate to trade
and capital
transactions, or to extension of services
flows
- portfolio investment and financial loans
and credits of EU investors
EU
IV.
Capital flows
Finalize liberalization of transactions at
Chapter 7
capital transactions account and BoP
Current
financial account to the EU liberalization
payments
levels
and capital
flows
EU
IV.
Approximation of
Ensure gradual approximation of current
B.1.3.
B.1.3. Update legislation as regards general
Chapter 6: legislation
laws and prospective legislation to the EU
regulation of financial markets
Financial
standards
services
EU
IV.
Efficient and
“Basic principles of efficient banking
B.2.5.
B.2.5. Improve regulation and supervision
Chapter 6: transparent
supervision” of the Basel Committee
B.3.2.
(oversight) systems as regards implementing
Financial
regulation
B.3.5.
international supervision standards at financial
services
C.2.2.
markets
B.3.2. Ensure transparency of reports and
EU
IV.
Efficient and
“Basic insurance principles” of the
transactions of financial market participants
Chapter 6: transparent
International Association of Insurance
B.3.5. Enhance efficiency of the system to
Financial
regulation
Supervisors
69
№
Requirements according to international and national agreements and programs
Reference
Agreement
to
Objectives
Essence
agreement
services
24
EU
25
EU
26
EU
27
EU
28
EU
29
EU
IV.
Chapter 6:
Financial
services
IV.
Chapter 6:
Financial
services
IV.
Chapter 6:
Financial
services
IV.
Chapter 6:
Financial
services
IV.
Chapter 6:
Financial
services
IV.
Chapter 7
Current
payments
and capital
flows
Efficient and
transparent
regulation
Efficient and
transparent
regulation
Efficient and
transparent
regulation
Efficient and
transparent
regulation
Efficient and
transparent
regulation
Facilitating
execution and
further
liberalization of
regulations
“Objectives and principles of securities
circulation regulation” of the
International Organization of Securities
Commissions
OECD Agreement on information
exchange on taxation issues
Reform measures allowing to meet requirements
Reference
to
Measures
measures
prevent and counteract money laundering,
terrorism financing and weapons of mass
destruction proliferation through the use of
financial markets
C.2.2. Ensure institutional capability of regulators
to implement international supervision standards
at financial markets and to move from
compliance based supervision to risk based
supervision
Statement by “G-20”member-countries
on information transparency and
information exchange for taxation
purposes
“Forty recommendations” and “Nine
special recommendations” on fighting
terrorism financing of the Financial
Action Task Force on Money Laundering
“Ten basic principles of information
exchange” disseminated by finance
ministers of the G-7 member-countries
During first four years to implement
measures to create necessary conditions
for further gradual use of the EU rules on
free capital movement (flow)
B.1.1.
B.1.2.
B.1.3.
B.1.1. Upgrade legislation as regards ensuring
equal competitive conditions at financial markets
B.1.2. Update legislation as regards ensuring free
movement (flow) of capital
B.1.3. Update legislation as regards general
regulation of financial markets
70
№
30
Requirements according to international and national agreements and programs
Reference
Agreement
to
Objectives
Essence
agreement
EU
V. Chapter Efficient and
Development of cooperation among
12:
transparent
various participants of financial system,
Financial regulation
in particular, regulators and supervision
services
agencies
31
EU
V. Chapter
12:
Financial
services
Efficient and
transparent
regulation
Development of administrative potential
of regulation and supervision agencies
32
EU
V. Chapter
12:
Financial
services
Efficient and
transparent
regulation
Ensuring independent and efficient
supervision
33
EU
V. Chapter
12:
Financial
services
Consumer
protection
Ensure effective and proper protection of
investors and other financial service
consumers
34
ППРФС 2 Component Strengthening
(Program
1
operational,
Loan to
financial, and
rehabilitate
regulatory capacity
financial
of the DGF on
sector)
resolving insolvent
banks.
ПЗ 1: State budget for 2015 envisages
reserve financing of the DGF, and the
Government of Ukraine ensures
necessary DGF financing in line with the
DGF needs, related to removing banks
from the market and refunding depositor
fund.
Reform measures allowing to meet requirements
Reference
to
Measures
measures
C.3.1.
C.3.1. Enhance coordination among financial
C.3.2.
market regulators
C.3.2. Enhance coordination among regulators of
financial market and market participants on the
basis of self-regulating organizations
C.2.1.
C.2.1. Conduct effective transformation of
C.2.2.
regulators in line with functioning strategy
C.2.4.
C.2.2. Ensure institutional capability of regulators
to implement international supervision standards
at financial markets and to move from
compliance based supervision to risk based
supervision
C.2.4. Raise institutional capability of regulators
to take effective balanced decision, and enhance
internal control
D.2.1.
D.2.1. Raise standards of information disclosure
D.2.2.
in the interests of consumers and financial market
D.2.4.
investors
D.2.2. Improve legislation as regards protecting
rights of consumers and financial market
investors
D.2.3. Act in proactive way to protect rights of
consumers and financial sector investors
B.2.2.
B.2.2. Improve systems of regulation and
B.2.3.
supervision as regards identification
B.2.4.
recapitalization needs of financial market
B.4.2.
participants
C.2.7.
B.2.3. Improve regulation and supervision system
C.3.1.
as regards removing ineffective financial market
participants from the market
71
№
35
36
Requirements according to international and national agreements and programs
Reference
Agreement
to
Objectives
Essence
agreement
ППРФС 2 Component Raising levels of
ПЗ 2: Approval of “anti-crisis” law
(Program 2
banking system
ensuring legal basis to implement
Loan to
solvency through
principles of state participation in bank
rehabilitate
implementation of recapitalization as adopted by the
financial
recapitalization
Program Loan to rehabilitate financial
sector)
and restructuring
sector (ППРФС1). Approval of
plans and
normative and legal documents ensuring
implementation of practical implementation of state
timely
participation in bank recapitalization as
enforcement
stipulated by the Program Loan to
measures.
rehabilitate financial sector (ППРФС1),
including identification of the decisionmaking mechanism and management
ППРФС 2 Component Enhance solvency
ПЗ 3: 35 larger banks finalize execution
(Program 2
level of the
of recapitalization and restructuring plans
Loan to
banking system
on the basis of the “anti-crisis” law (exact
rehabilitate
through
date will be specified later on and will set
financial
implementation of up implementation timing of the Program
sector)
recapitalization
Loan to rehabilitate financial sector
and restructuring
ППРФС2)
plans and
conducting timely
enforcement
measures.
Reform measures allowing to meet requirements
Reference
to
Measures
measures
B.2.4. Improve systems of regulation and
supervision (oversight) as regards functioning of
system-important financial market players
B.4.2. Enhance efficiency of operating problem
and non-core assets, including in nationalized
banks
C.2.7. Enhance efficiency of regulators work with
problem assets at financial market
C.3.1. Enhance coordination among financial
market regulators
72
№
37
38
Requirements according to international and national agreements and programs
Reference
Agreement
to
Objectives
Essence
agreement
ППРФС 2 Component Enhance solvency
ПЗ 4: The NBU initiates removing from
(Program 2
level of the
the market, with the DGF assistance, of
Loan to
banking system
all banks that fail to perform
rehabilitate
through
recapitalization and restructuring plans
financial
implementation of within the specified time and in line with
sector)
recapitalization
methodology set up in the “anti-crisis”
and restructuring
law and in the Law on the system of
plans and
guaranteeing deposits of physical persons
conducting timely
enforcement
measures.
ППРФС 2 Component Strengthening
(Program 3
legal and
Loan to
institutional
rehabilitate
resilience and
financial
efficiency of the
sector)
banking system.
ПЗ 5: The borrower adopts a degree
creating the High Level Committee on
financial stability comprising
representatives of the NBU, MinFin,
DGF, and the other two regulators in
financial sector
Reform measures allowing to meet requirements
Reference
to
Measures
measures
B.2.2.
B.2.2. Improve systems of regulation and
B.2.3.
supervision as regards identifying recapitalization
B.2.4.
needs of financial market participants
B.4.2.
B.2.3. Improve systems of regulation and
C.2.7.
supervision as regards removing inefficient
C.3.1.
financial market participants from the market
B.2.4. Improve systems of regulation and
supervision (oversight) as regards functioning of
the system-important financial market players
B.4.2. Enhance efficiency of operating problem
and non-core assets, including in nationalized
banks
C.2.7. Enhance efficiency of operating problem
and non-core assets, including in nationalized
banks
C.3.1. Enhance coordination among financial
market regulators
C.3.1.
C.3.1. Enhance coordination among financial
market regulators
73
№
39
40
Requirements according to international and national agreements and programs
Reference
Agreement
to
Objectives
Essence
agreement
ППРФС
Component Strengthening
ПЗ 6: The Government shall ensure
(Program 3
legal and
adopting of the normative documents
Loan to
institutional
aimed at decreasing related party risks in
rehabilitate
sustainability and
the system by means of: 1) the NBU
financial
efficiency of the
commenced information disclosure as
sector) 2
banking system.
regards final bank beneficiaries. This is
confirmed by the fact that the NBU home
web-page contains accurate and exact
information on final beneficiaries of
banks operating in Ukraine; 2)
implementation of legal requirements as
regards corporate borrowers to disclose
final beneficiaries; 3) tighter minimum
capital requirement; 4) improving
procedures on mergers and acquisitions
of financial institutions
ППРФС 2 Component Strengthening
ПЗ 7: Borrowers and the NBU adopt a
(Program 3
legal and
number of legal and normative
Loan
institutional
documents aimed at improving
rehabilitate
resilience and
environment to resolve non-performing
financial
efficiency of the
loans with the objective of: 1) lifting
sector)
banking system.
hurdles related to legal barriers and taxes;
2) enhancing efficiency of court
procedures through adoption of the law
on private enforcement agents
Reform measures allowing to meet requirements
Reference
to
Measures
measures
B.2.1.
B.2.1. Improve systems of regulation and
B.2.2.
supervision as regards identification, control, and
B.3.1.
reduction of transactions with related parties
B.3.3.
B.2.2. Improve systems of regulation and
B.5.7.
supervision as regards identifying recapitalization
C.2.6.
needs of financial market participants
B.3.1. Stimulate consolidation of financial market
alongside with preserving competitiveness.
B.3.3. Ensure accumulation and exchange of
information on borrowers credit history
B.5.7. Stimulate development of infrastructure
ensuring efficient accumulation and exchange of
information on borrowers credit history
С.2.6. Enhance efficiency of counteracting
corruption at financial markets
B.5.6.
B.6.1.
B.4.1.
B.4.2.
B.4.3.
C.2.7.
B.5.6. Stimulate development of infrastructure
ensuring efficient management of problem assets.
B.6.1. Improve taxation system for transactions
related to enforcement of problem arrears
B.4.1. Stimulate restructuring of arrears that can
be rehabilitated.
B.4.2. Enhance efficiency of operating problem
and non-core assets, including in nationalized
banks.
B.4.3. Introduce effective mechanism of creditor
rights protection
C.2.7 Enhance efficiency of regulators as regards
working with problem assets at financial market
74
№
41
42
43
44
Requirements according to international and national agreements and programs
Reference
Agreement
to
Objectives
Essence
agreement
ППРФС 2 Component Strengthening
ПЗ 8: The NBU adopts normative and
(Program 3
legal and
legal documents establishing special
Loan to
institutional
regulatory and supervisory requirements
rehabilitate
sustainability and
to system-important banks
financial
efficiency of the
sector)
banking system.
ППРФС 2 Component Strengthening
ПЗ 9: Improve quality of information on
(Program 3
legal and
corporate borrowers submitted to the
Loan to
institutional
NBU for supervision purposes through
rehabilitate
resilience and
adoption of legislative changes
financial
efficiency of the
envisaging revision of Credit Registry
sector)
banking system.
operation
ППРФС 2 Component Strengthening
ПЗ 10: Adopt normative and legal
(Program 3
legal and
documents envisaging tightening
Loan to
institutional
requirements on information disclosure in
rehabilitate
resilience and
consumer credit (loan) sector
financial
efficiency of the
sector)
banking system.
CA
Section 1
Introduction of
Enhance quality of regulation in financial
(Coalition
efficient
sector with the objective of performing a
Agreement)
supervision
more balanced consolidated prudential
supervision, including by transferring
supervision functions over credit history
bureaus from the National Commission
on state regulation at financial services
market to the NBU
Reform measures allowing to meet requirements
Reference
to
Measures
measures
B.2.4
B.2.4. Improve systems of regulation and
supervision (oversight) as regards functioning of
the system-important financial market players
B.3.3.
B.5.7.
B.3.3.Ensure accumulation and information
exchange as regards borrowers credit history
B.5.7. Stimulate development of infrastructure
ensuring efficient accumulation and information
exchange as regards borrowers credit history
B.3.2.
D.2.1.
B.3.2. Ensure transparency of reports and
transactions of financial market players
D.2.1. Raise standards of information disclosure
in the interests of consumers and financial market
investors
B.2.5.
B.3.3.
C.2.1.
C.2.2.
C.3.1.
B.2.5. Improve systems of regulation and
supervision (oversight) as regards implementing
international supervision standards at financial
markets
B.3.3. Ensure accumulation and information
exchange as regards borrowers credit history
C.2.1. Conduct efficient transformation of
regulators in line with functioning strategy
С.2.2. Ensure institutional capacity of regulators
to support implementation of international
supervision standards at financial markets, and to
move from compliance based supervision to risk
based supervision
75
№
Requirements according to international and national agreements and programs
Reference
Agreement
to
Objectives
Essence
agreement
45
CA
Section 1
Introduction of
efficient
supervision
Harmonize requirements to stock market
participants with those in the EU
Directives, and enhance control over
execution of prudential requirements with
further enhanced reliability of stock
market participants
46
CA
Section 1
Introduction of
efficient
supervision
Align legislation on insurance companies
regulation to the EU Directives.
47
CA
Section 1
Introduction of
efficient
supervision
Develop normative and legal framework
to protect creditor rights in line with
international experience, thus developing
efficient financial mechanisms to protect
financial system and decrease risk effects
as regards financial market participants
Reform measures allowing to meet requirements
Reference
to
Measures
measures
C.3.1. Enhance coordination among financial
market regulators
B.1.3.
B.1.3. Update legislation as regards general
B.2.5.
regulation of financial markets
C.2.2.
B.2.5. Improve systems of regulation and
supervision (oversight) as regards implementing
international supervision standards at financial
markets
С.2.2. Ensure institutional capability of regulators
to implement international supervision standards
at financial markets and to move from
compliance based supervision to risk based
supervision
B.2.5.
B.2.5. Improve systems of regulation and
B.3.8.
supervision (oversight) as regards implementing
international supervision standards at financial
markets
B.3.8. Stimulate comprehensive development of
insurance services market
B.5.6.
B.5.6. Enhance efficiency of infrastructure to
B.4.3.
operate problem assets
B.4.3. Implement efficient mechanism of
protecting creditor rights
76
№
48
49
50
51
Requirements according to international and national agreements and programs
Reference
Agreement
to
Objectives
Essence
agreement
CA
Section 1
Introduction of
Remove possibilities of tax evasion
efficient
through financial instruments by
supervision
implementing efficient mechanisms of
preventing formation and operation of
financial pyramids, fictitious securities,
their identification and liquidation, as
well as tightening regulation of financial
institutions operation
CA
Section 1
Introduction of
Aligning legislation on mergers and
efficient
acquisitions of financial market
supervision
participants to the best EU practices, thus
accelerating procedures of consolidation,
streamlining operational and legal
processes during consolidation, and
resolving issues of rights protection of
depositors, borrowers, investors, and
taxpayers
CA
Section 1
Introduction of
Ensure implementation of the
efficient
membership for the National Commission
supervision
on securities and stock market in the
International Organization of Securities
Commissions (IOSCO), and
implementation of international standards
and principles in regulating Ukrainian
stock market
CA
Section 1
Introduction of
efficient
supervision
Implementation by financial market
regulators of single international
standards of e-document circulation,
provision of administrative services, and
communication with market participants
Reform measures allowing to meet requirements
Reference
to
Measures
measures
B.2.5.
B.2.5. Improve systems of regulation and
D.2.3.
supervision (oversight) as regards implementing
international supervision standards at financial
markets
D.2.3. Ensure proactive protection of consumer
and financial market investors rights
B.1.3.
B.3.1.
D.2.2.
B.1.3. Update legislation as regards general
regulation of financial markets
B.3.1. Stimulate consolidation of financial
markets alongside preserving competitiveness.
D.2.2. Improve legislation on protection of
consumer and financial market investor rights
B.2.5.
C.2.2.
B.2.5. Improve systems of regulation and
supervision (oversight) as regards implementing
international supervision standards at financial
markets
С.2.2. Ensure institutional capability of regulators
to implement international supervision standards
at financial markets and to move from
compliance based supervision to risk based
supervision
C.4.1. Implement reporting and information
exchange standards to ensure efficient integration
into the EU financial market
C.4.4. Continue implementation of ITtechnologies of regulators operation to support
77
C.4.1.
C.4.4.
№
Requirements according to international and national agreements and programs
Reference
Agreement
to
Objectives
Essence
agreement
in e-format
52
CA
Section 2
Investment
attraction into
reliable
instruments
53
CA
Section 2
Investment
attraction into
reliable
instruments
54
CA
Section 2
Investment
attraction into
reliable
instruments
Reform measures allowing to meet requirements
Reference
to
Measures
measures
more effective work
Liberalization of FX regulation and FX
control by cancelling obsolete regulatory
documents and removing unsubstantiated
restrictions of trans-border capital flows,
streamlining procedures for foreign
investors to invest into Ukraine,
repatriation of revenues, and as for
citizens of Ukraine – on investing abroad
(from 2016)
Development of stock market instruments
by adopting the law on derivatives, and
improve legislation on corporate bonds
and taxation of revenues from
transactions with financial instruments
B.1.2.
B.1.2. Update legislation as regards ensuring free
movement (flow) of capital
B.5.1.
B.5.2.
B.6.2.
B.6.3.
Improve corporate governance.
B.3.7.
B.5.1. Stimulate development of derivative
instruments of financial market
B.5.2. Stimulate development of financial market
instruments
B.6.2. Harmonize taxation system for financial
market instruments
B.6.3. Ensure tax stimulation for financial market
instruments development
B.3.7. Stimulate raising level of corporate
governance of financial market participants.
78
№
55
56
57
Requirements according to international and national agreements and programs
Reference
Agreement
to
Objectives
Essence
agreement
CA
Section 3
Development of
Setting up modern stock exchange
financial sector
infrastructure by attracting leading
infrastructure
foreign stock market operators and by
upgrading payment infrastructure in order
to reduce risks of participants and to
concentrate trade in FX, derivatives,
shares, bonds, and other financial
instruments at stock markets.
CA
Section 3
Development of
Improve legislation on functioning of
financial sector
commodity stock market to ensure
infrastructure
transparent price formation at commodity
stock exchanges and develop efficient
supervision of the above
CA
Section 3
Financial sector
infrastructure
development
Setting up mechanisms to ensure cheaper
financing of capital investment of
national producers
Reform measures allowing to meet requirements
Reference
to
Measures
measures
B.5.9.
B.5.9. Ensure consolidation and development of
stock market infrastructure
B.2.5.
B.5.9.
B.5.2.
B.5.3.
B.5.4.
B.2.5. Improve systems of regulation and
supervision (oversight) as regards implementation
of international supervision standards at financial
markets
B.5.9. Ensure consolidation and development of
stock market infrastructure
B.5.2. Stimulate development of financial market
instruments
B.5.3. Stimulate development of accumulative
pension provisioning
B.5.4. Stimulate more efficient functioning of the
available instruments and financial market
infrastructure
79