National Commission of Securities and Stock Market intends to change game rules for investors in Ukraine.
Head of NCSSM Tymur Khromaev informed this during press briefing in Ukraine Crisis Media Center.
According to him, Ukraine needs radical change of approaches. Stock market should be transparent, with clear and transparent pricing.
‘We have to provide unprecedented protection of capital investors’, – Khromaev said.
According to him, all of the above is possible only when there is a strong regulator which is institutionally and financially independent.
In order to implement all these tasks the Commission has prepared a number of draft laws, part of which is pending in the Parliament, and the rest will be transferred there in few months.
When speaking about changes that wait for Stock market, head of the National Commission mentioned reform of the system of depository account and creation of a new legal framework for exchange trading.
In addition, NCSSM plans to translate legislative base that regulates financial markets in English which has never been done before.
‘This is a disaster, we have not a single document in English!’, – Khromaev said.
Foreign investors have to pay legal companies for translation in order to read that law. This is called ‘bringing’ into market when investors pay ‘price of entry’.
Khromaev underlined that such thing shouldn’t exist and, of course, new laws must be immediately adapted to international norms.
He also reminded that in course of last 4 months commission radically changed approach in work after appointment of new members.
In particular, they achieved adoption of law aimed at significant increase of protection of minority shareholders.
NCSSM got significant help from commissions of Germany and US which will give it technical support concerning adoption of laws, training, technical support for quality work on market surveillance.
In 2015 for the first time in its history, in NCSSM there has been established a department for dialogue with regulators of partner countries.
Tymur Khromaev also mentioned that stock market expects significant reduce of number of participants. According to him, the last asset class to be expected is the stock market. It will appear in Ukraine only in several years when there will be certain level of information disclosure and investor protection, people’s confidence in the regulator.
However, NCSSM plans to launch derivatives market on new platform in course of 2 years.
Source: Ukraine Crisis Media Center