Ліга страхових організацій України

The National Commission for Regulation of Financial Services (Natskomfinuslug) will not be eliminated in 2016, although the plan was to cease the existence on January 1, 2016.

“Until the end of the year, the parliament will not accept the presidential bill on the transfer functions of the commission to National Bank”, – says deputy Maxim Polyakov ( “National Front”). We are talking about the draft law 2413a “On Amendments to Certain Legislative Acts of Ukraine regarding the consolidation of the functions of state regulation of financial services markets”, registered in the parliament July 20, 2015.

To improve

The bill provided that Natskomfinuslug will work only until January 1, 2016. After that, it will share the functions of the National Bank and the National Commission on Securities and Stock Market.

In particular, National Commission on Securities and Stock Market had to take patronage over state pension funds, issuers of mortgage certificates and trust companies. Other participants of the non-banking financila market (insurance companies, financial leasing and factoring companies, credit unions, pawn shops) will come under the control of the NBU.

The initiators of the change believe that the separation of functions between the NBU and National Commission on Securities and Stock Market will benefit the financial market. “The changes will create the legal basis for the termination of duplication of national regulators in the area of financial markets, simplification and transparency of management decision-making, improving the business environment with increased responsibility of market participants”, – says in the explanatory note to the bill 2413a.

At the end of last year, the document approved by the Committee of Verkhovna Rada, several times it was included in the agenda of the session, but was never considered.

Section functions on pause

New year Commission launched in the previous status. Talking about its liquidation, which are actively conducted with 2014, subsided.

“Transition functions for the non-banking institutions supervision of the Commission in the National Bank of Ukraine is possible only after the adoption of the relevant legislation by Parliament. National Bank hopes on adoption of these documents by the Verkhovna Rada as soon as possible “, – said the press service of the NBU.

But many doubt that these hopes come true. “It is unlikely that someone from the deputies will support this bill, – said chairman of the commission on insurance Ukrainian Society of Financial Analysts Vyacheslav Chernyakhovsky, – Because you can not pass the mechanical powers of the commission to NBU – the regulator needs reform. It is impossible to National Bank concentrate all functions at once: a methodological and control, and emission. ” This, he said, will strengthen financila market risks.

“I’m not sure that the change of control is useful for the participants of the financial market in times of crisis. Such reforms are usually carried out in a growing market “, – says the president of the Ukrainian Association of Credit Unions Victoria Volkovskaya.

And Maxim Polyakov doubt that the NBU enough knowledge about the non-banking financial market, which is why after the transfer of functions to the National Bank Commission, may suffer a lot of insurers. “I personally believe that the faction” National Front “never will vote for this document” – says the deputy.

Policy pressure on finances

The main reason for stopping the merger of the two regulators participants of non-bank financial market informally called squabbles between the Ukrainian politicians.

“In the present circumstances of the collapse of coalition “National Front “is unlikely would like to vote for the project, initiated by the President”, – said the head of one of the largest insurance companies, who asked not to call him.

He did not rule out that a number of deputies have their own interests and to Natskomfinuslug remained current market regulator. This interest is suspected by insurers in Maxim Polyakov. “Yes, I know that I have called the father of the insurance market”, as I headed Natskomfinuslug and when I went out of there to the Parliament, promised to defend the interests of insurers. However, I don’t have my personal interest in this”, – says Polyakov.

It is worth noting that the deputies of the BPP and “Radical Party” is not abandoned their attempts to regain control of the guarantee funds of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU), which houses more than 1 billion USD. And by transmission control functions from the Commission to the National Bank of Ukraine, this money, it is possible, will not be available for them, as will come under the control of the Deposit Guarantee Fund.

A light in the end of a tunnel

While politicians are trying to find out the relationships, the NBU and Natskomfinuslug preparing for the merger. “Right now, the National Bank is expanding its knowledge about how the market works of non-bank financial institutions”, – reported the press service of the NBU. According Natskomfinuslug member Alexander Zaletov, all departments of the commission already held in the NBU their presentations. “We are working with the NBU in several ways, including the exchange of experience and work on the creation of consolidated supervision”, – told Zaletov.

But no matter how great an awkward relationship of NBU officials and Natskomfinuslug uncertainty of the Commission’s future cannot be reflected in its activities. Although Alexander Zaletov assures that the prospect of transition to the NBU is an incentive for employees of Natskomfinuslug to work better, members of non-banking financial market in the doubt.

Tatiana Terekhova