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The financial crisis has revealed numerous gaps in the Ukrainian legislation which impede a well-ordered recovery of the financial sector. The FINREP Project assists Ukrainian partners to fill these gaps, reviewing and commenting on draft laws and regulations with the purpose of clarifying concepts, and promoting a legal framework for financial markets based on international standards.
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The FINREP Project regularly monitors the banking legislation and takes an active part in rulemaking, interacting directly with the National Bank of Ukraine, other financial agencies, and associations (the American Chamber of Commerce in Ukraine , the Association of Ukrainian banks, etc.).
The FINREP Project, jointly with the International Monetary Fund and the World Bank, supports international standards of disclosure of information on real bank owners, improvement of the operation of the foreign exchange market, and increased regulatory supervision over banking institutions. The FINREP Project also comments about proposals to amend provisions of the tax code which have an essential impact on the banking system and the financial sector in general. ...
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The development of capital markets and the sector of non-bank financial institutions depend to a great extent on creation of a high quality system of regulation and supervision by strong independent regulatory bodies. The FINREP Project offers legal advice and provides assistance in drafting regulatory and legal acts in the following areas:
- Creation of a single, central depository with majority private ownership;
- Adoption of international best standards of information disclosure;
- Creation of an effective system of self-regulation of the stock market that envisages clear identification of the principles, functions, and powers of SROs including delegation of regulatory powers to SROs;
- Implementation and improvement of provisions of the Law of Ukraine “On Joint Stock Companies” including the issues of listing and dematerialization. ...
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Ukraine is moving to enhance transparency of the financial market and also ensure comparability of the Ukrainian financial reporting with international standards by adopting and introducing IAS/IFRS. The Law of Ukraine “On Joint Stock Companies” which amends laws and binds public companies to disclose information on the basis of IAS is a positive step forward, but additional efforts are required for achieving transparency on capital markets.
The FINREP Project will support the Ministry of Finance and other regulators in their efforts to introduce IAS/IFRS for listed companies, banks and financial institutions.
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The role of the professional appraiser in Ukraine is quite important. Valuations are used in the course of privatization, judicial investigations, resolution of joint-stock problems, tax assessment and preparation of financial statements by enterprises, including numerous financial institutions, such as banks, pension funds, fund managers, brokers-dealers and insurance companies. Valuation of assets is also very important in bankruptcy proceedings, the procedures of voluntary liquidation, merger and takeover, state property management, etc.
The FINREP Project will provide technical assistance to the State Property Fund of Ukraine in the field of legislation drafting with the view of bringing valuation activities in compliance with international best practices. ...
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Timely disclosure of accurate and reliable information by securities issuers provides investors with sufficient information for making a justified investment decision on a well-regulated capital market. The Government of Ukraine, the Securities and Stock Market National Commission, and market participants recognize that converting to international information disclosure standards is necessary to develop the Ukrainian capital market.
The Law of Ukraine “On Amending Certain Legislative Acts of Ukraine in Respect of Responsibility for Violations on the Securities Market” of December 25, 2008 strengthens considerably the responsibility for illegal use of insider information and for price manipulation in performance of securities operations. The policy of free, prompt, full and simultaneous information disclosure will minimize the possibilities of price manipulation, prevent illegal use of insider information, and thus will provide sound operation of such a securities market.
In accordance with the new SSMSC Regulation on information disclosure by the issuers of listed shares and corporate bonds, all listed companies which issue shares or corporate bonds are to disclose information through Electronic System of Comprehensive Information Disclosure (ESCRIN). ESCRIN affords unprecedented opportunities for capital markets of Ukraine to publish reporting data on financial and economic activities on the regulator’s website on a real time basis. In addition, the system will improve significantly the SSMNC capacity to provide prudent and effective market regulation. The FINREP Project continues to assist SSMNC in the ESCRIN implementation providing training and outreach. ...
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