Ukrainian President Volodymyr Zelensky dismissed Ruslan Magomedov from his position as head of the National Securities and Stock Market Commission (NSSMC). The corresponding decree of the head of state No. 1018 of December 31 was published on his website.
Magomedov, who at the time was a freelance advisor to the head of the Office of the President (OP) and previously director of Astrum Capital, was appointed head of the NSSMC on February 23, 2021, replacing Timur Khromaev, whose term of office had expired along with three other members of the regulator.
In mid-December, Magomedov told Interfax-Ukraine that he would do everything possible to ensure that a law on personal investment accounts was passed before the end of his term of office on February 23, 2027, which, together with another idea to sell 7% of shares in state-owned companies and banks, would form the basis for a market reboot.
In October, Interfax-Ukraine reported on the resignation of NCSSM member Irakli Baramia and noted that the commission’s head had submitted a request for the dismissal of another member, Maxim Libanov, whose term of office had expired.
According to the publication Ekonomicheskaya Pravda, two other members of the NSSMC, Yuriy Boyko and Yaroslav Shlyakhov, submitted letters to President Volodymyr Zelenskyy in early December requesting their dismissal from their positions.
The adoption of a new law on the seventh member of the commission in 2024 has not yet affected its composition.
If all four members of the NSSMC are dismissed, it will lose its quorum. In addition, as one of the commission members told Interfax-Ukraine, a provision of the new law will come into force on January 1, 2026, according to which candidates will have to pass a selection committee before being nominated for appointment as a commission member, which may increase the time required for this personnel decision.
The NSSMC, as a collegial body, consists of a chairman and seven commission members (six members before the new law was adopted in February), who are appointed by the President of Ukraine for a term of six years and dismissed from office in accordance with his decrees.
During its assessment of the head and the NSSMC, which was conducted as part of the cooperation program with the IMF and whose results were published in early October, KPMG expressed the opinion that replacing the head and all members of the commission at the same time creates problems with continuity, institutional knowledge, and organizational memory.
“In order to ensure continuity in decision-making and consistency in policy, we recommend introducing rotational appointments for commission members. Without the introduction of rotational appointments, changes could lead to a loss of strategic vision and slow adaptation,” the consultant believes.
The report notes that consistent appointments will allow experienced commission members to guide new members, improving the stability of the organization and ongoing progress.
