The National Bank of Ukraine has cancelled licenses for four financial companies and one credit union, and excluded two credit unions from the State Register of Financial Institutions, according to the regulator’s website.
According to the NBU, the decisions of December 12, all licenses of Holastis Financial Company LLC, Maximum Financial Company LLC and Credit Finance Ukraine Financial Company LLC have been annulled.
As reported, on October 19, 2022 the mentioned institutions have been applied sanctions in the form of temporary suspension of licenses to provide financial services due to non-provision of information and documents about the ownership structure requested by the National Bank of Ukraine. As of the moment of taking decision on cancellation of licenses the violations have not been eliminated.
Besides, LLC “FC “Plaza Inves” has its license for provision of financial leasing services revoked due to failure to provide any financial service under this license during 12 months since the day of its issuance.
CC “Ukrainian Oshchad Center” is also excluded from the State Register of financial institutions due to the cancellation of all previous licenses and CC “Elliada” on the basis of its own application, guided by the special procedure during martial law.
Motor-Garant Insurance Company and Alfa Strakhovaniye PJSC will lose the right to conclude new contracts of compulsory insurance of civil liability of motor vehicles owners (CMTPL) starting from December 6, 2022, according to website of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU).
It is noted that companies must fulfill their obligations under previously concluded contracts.
The Ministry of Transport Insurance Bureau notes that the reason for this decision was the application of the National Bank of Ukraine to these companies in the form of suspension of licenses for compulsory insurance of civil liability of owners of vehicles.
As reported, on December 5, the NBU suspended Alfastrakhovanie and Motor-Garant in connection with the fact that the companies did not meet the requirements of the Regulations on licensing and registration of financial services and conditions for their activities in the provision of financial services, namely the requirements for business reputation of financial services providers.
As previously reported, IC “Alfa Insurance” was founded in 2000. It offers universal portfolio of services, including comprehensive programs to protect business interests and a wide range of insurance products for individuals.
IC Motor-Garant has been operating in the insurance market since 2000 and is a part of the banking group together with Motor-Bank JSC. The ultimate beneficial owner of the company is Vyacheslav Boguslaev, who owns 83.6% of shares.
On November 16, the National Bank of Ukraine cancelled licenses for 17 non-bank financial institutions and excluded 13 from the State Register of Financial Institutions, the regulator’s website reported.
Thus, on the basis of their own applications, all the licenses of the following LLCs were cancelled: FC Favorit, Capital Properties, Fin2go, Professional Payment System, Agema Finance, ICC Finance, Skye FC, Favorit FC, Parus FC, FC “Finex Capital”, FC “Tessella Asset Finance”, PO “Lombard Creditom” LLC “Autodoc” and company, FC “Center of factoring services”, FC “Sokur”.
In addition, some licenses were revoked on the basis of the applications received: FC Technofinance – for the provision of financial leasing services, Profitgid – for the provision of factoring services, the provision of financial leasing services, FC Fin Pay – for the provision of factoring services, lending funds, including a financial loan.
Based on the received applications and documents the following companies were excluded from the State register of financial institutions: PA “Lombard “Creditom”, LLC “Agema Finance”, LLC FC “Favorit”, LLC “Professional Payment System”, LLC “ICC Finance”, LLC “Capital Prospect”, FC “Tessella Asset Finance”, LLC “FC “Favorit”, LLC FC “Finex Capital”, LLC “FC “Factoring Services Center”.
LLC “Financial company “Whitepay” and LLC “Financial company “Pung” were excluded from the State register of financial institutions due to the lack of licenses for activities.
The National Bank of Ukraine (NBU) has cancelled licenses of 13 non-banking financial institutions and removed 10 financial institutions from the registers, the regulator’s website reported.
Thus, on the basis of their own applications, all existing licenses of ARES Capital LLC, Infinance LLC, KF.ua LLC, Omega-Finance LLC, FC Aland LLC, FC Alma LLC, FC Intime Finance LLC, and FC Monti LLC were revoked. All companies except for FC “Monti” have been excluded from the State Register of financial institutions.
MOTOR SICH JSC is also excluded from the Register of persons who are not financial institutions but are entitled to provide certain financial services due to the lack of a valid license for the provision of financial services.
In addition, based on the applications received, certain licenses have been revoked for Prime Finance Financial Company LLC to provide guarantees, Debt Obligation Fund Factoring Company LLC to provide guarantees, and Eliance Financial Company LLC to provide financial leasing services.
The National Bank revoked (cancelled) the licenses to provide financial services of CC “Garanta-L.K.” and CC Partner-Plus and excluded these credit unions from the State Register of financial institutions based on their own applications, guided by the special procedure during martial law*.
As of October 1, 2022 the volume of assets of CC “Garant-L.K.” was UAH 1,032 million (0.067% of the credit union market volume), liabilities – UAH 105 thousand (0.012% of the credit union market volume), including UAH 105 thousand – liabilities on which no interest is accrued.
The volume of assets of CC “Partner-Plus” as of October, 1, 2022 made UAH 996,65 th. (0,065% of the total volume of credit unions market), obligations – UAH 23,16 th. (0,003% of the total volume of credit unions market).
Such decisions were made by the Committee on supervision and regulation of non-banking financial services markets on November 3, 2022.
On October 21, the National Bank of Ukraine resumed temporarily suspended licenses of SK EKTA LLC (Kyiv), according to the regulator’s website.
Earlier, on August 19 of this year, the National Bank applied a measure of influence to the company in the form of suspension of licenses for insurance activities for violation of mandatory financial standards (solvency, capital adequacy and risk of operations). Violations were discovered based on the analysis of the IC’s reporting for the first quarter of 2022, which the insurer had to eliminate by September 20, 2022.
The company eliminated the violations within the specified period, after which the NBU renewed the licenses, the National Bank said in a statement.
IC “EKTA” was registered in 2018 and specializes in risk insurance.
In the first half of this year, the insurer collected UAH 94.2 million of insurance payments and paid out UAH 6.5 million of insurance payments. The authorized capital is UAH 37 million.
On September 29, 2022, the National Bank of Ukraine applied to PJSC Ukrainian Industrial Insurance Company and ALC Nadiya Insurance Company (both Kyiv) measures in the form of license cancellation, according to the website of the regulator.
The reason for this decision was the repeated violation of license conditions and once again failure to provide information at the request of the regulator. Namely, observance of mandatory monetary standards, overdue obligations under concluded insurance contracts, cases of violation of the deadlines for the settlement of declared events that have signs of insurance (the composition of the reserve for claimed but not paid losses).
“Consequently, for a long time after the start of the Russian aggression, insurers did not take measures to establish operational activities and accounting. This makes it impossible to carry out full-fledged insurance activities,” the report says.
Decisions to cancel licenses come into force on September 30, 2022.
As reported on August 12, 2022, a measure of influence was applied to these insurers in the form of a temporary suspension of licenses.
Insurers, to which the National Bank has applied enforcement measures, operate in the non-life segment.
PJSC “Ukrainian Industrial Insurance Company” does not provide reports to the National Bank, starting from the reporting for 2021.
ALC IC “Nadiya” does not provide reporting, starting with the reporting for the 1st quarter of 2022.
Based on the results of 2021, IC Nadiya received UAH 3 million in insurance premiums and made UAH 3.1 million in insurance payments. At the same time, the company did not enter into insurance contracts with individuals. The company’s market share based on the results of 2021 is 0.006%. The insurer informed the National Bank of the temporary cessation of insurance activities after the start of the military aggression of the Russian Federation.
