The National Bank of Ukraine (NBU) Committee on Supervision and Regulation of the Non-Bank Financial Services Markets at its meetings held on December 24 and 30, 2020, revoked the licenses for the provision of financial services of 22 non-bank financial institutions.
As reported on the NBU website, the NBU decided to revoke all licenses for the provision of financial services of five financial institutions – Creditlife financial company LLC, Yuvid-2009 LLC, Aliot financial company LLC, Kailas Finance financial company LLC and Parkmar Inkaso LLC. The total assets of these companies as of October 1, 2020 amounted to UAH 138.6 million, or 0.07% of the total assets of the market.
In addition, the regulator revoked all licenses of the Ukrsotscredit credit union, in particular, one license for the provision of loans, including a financial loan. Liabilities of Ukrsotscredit credit union as of October 1, 2020 amounted to UAH 200 (0.00002% of the total market volume), and its assets amounted to UAH 917,800 (0.04% of the total market volume).
The committee also decided to revoke several of the existing licenses of Global Infinity Ukraine LLC, in particular, licenses for the provision of financial leasing services, as well as for the provision of guarantees. The company still has two licenses in effect – for the provision of loans, including a financial loan, as well as for the provision of factoring services.
In addition, the regulator revoked the license for the provision of guarantees of Dekart financial company LLC, Kaverton financial company LLC, Professional Payment System LLC, Fidem financial company LLC, Finar financial company LLC, Asap Finance LLC, Bladvein financial company LLC, Verra Finance LLC, Invest House financial company LLC, Mega Finance financial company LLC, Sky financial company LLC, Smart Finance Solution financial company LLC, Finance Company LLC and Finrezerv financial company LLC. These financial companies continue their activities and have valid licenses, in particular for the provision of loans, including a financial loan, for the provision of factoring services, as well as for the provision of financial leasing services.
The NBU said that these companies had their licenses for the provision of guarantees revoked due to the fact that they did not plan to be actively involved in the provision of guarantees and were not ready to comply with the mandatory standards that came into force on May 1, 2020.
In December, the National Bank reminded all market players who had valid licenses to provide guarantees of the need to comply with mandatory standards.
According to the results of the submitted financial statements for the first nine months of 2020, two-thirds of the financial companies-guarantors out of 354 licensed did not comply with the requirements of these standards and had at least one standard failed to meet.
Ukraine’s National Commission for Financial Service Markets Regulation on December 18 amended the strategy for reforming the public regulation of the nonbanking financial service market for 2015-2020 approved by commission resolution No. 499 dated March 19, 2015, according to a posting on the website of the League of Insurance Organizations of Ukraine (LIOU).
According to the league, the goal of the strategy is to reform the public regulation of nonbanking financial services markets to ensure favorable conditions for their further development, increase investment attractiveness, restore consumer confidence in nonbanking financial services, and enhance the role of the nonbanking financial sector in the social and economic life of the country.
According to resolution No. 2230 of the regulator dated December 18, 2018, the main objectives are to bring the regulatory environment of the nonbanking financial services market to international standards of regulation and supervision, improve the activity of the regulator and increase the effectiveness of public supervision, and increase the level of financial inclusion and protection of the interests of consumer of nonbanking financial services, create favorable conditions for the strengthening and sustainable development of nonbanking financial services markets.
In particular, to achieve the strategic goal of creating an enabling environment for strengthening and sustainable development of nonbanking financial services markets, the strategy is expanded by the objective of improving the system of analysis, forecasting and strategic policy planning in the provision of nonbanking financial services.
The National Commission for the State Regulation of Energy, Housing and Utilities Services (NCER) has removed UAH 215.172 million from the tariff of national energy company Ukrenergo saved on procurement in 2017, which would entail the worsening of financial indicators of the state-run enterprise and its payments to the national budget. The press service of Ukrenergo reported that the commission at a meeting on Tuesday cut the company’s tariff for transmission for December 2018 to 3.45 kopecks per kilowatt.
The company said that only on September 4, 2018 the company was permitted to use UAH 215.17 million saved on procurement and obliged to provide a package of documents amending the investment program before October 1.
On September 21, Ukrenergo provided the commission with all the required information, including the approval of regional administrations and the Ministry of Energy and Coal during public hearings. At the same time, on October 24, it became known that the approvals provided by the company did not suit the commission, which demanded a separate letter of approval of changes from the relevant ministry.
As a result, the commission has withdrawn UAH 215.172 million from the tariff of Ukrenergo. The money at that time was already invested in projects for the construction and modernization of the energy infrastructure.
According to Ukrenergo CEO Vsevolod Kovalchuk, the withdrawal of this amount from the investment program is an unreasonable decision, as a result of which the financial indicators of the enterprise and its contributions to the national budget will decrease.
“In fact, this is a redistribution of funds between the energy market players. These funds should have been channeled to additional financing of transitional strategic facilities that are important for the entire industry. We are concerned that this decision will not lead to a decrease in wholesale electricity prices and will not affect the payments of end consumers, but it will negatively affect the indicators of gross income and profit of the company, its payments to the national budget,” Kovalchuhk said.
According to Ukrenergo, the total amount of the investment program of Ukrenergo for 2018 is UAH 2.61 billion. In the nine months ending September 2018, its actual implementation amounted to 94.2%. At the same time, funding continues for projects launched or pending in 2017.
The National Commission for Communications and Informatization Regulation (NCCR) has placed information about Euro Ukrposhta LLC (Chernivtsi) and Sky Logistics LLC (Kyiv) to the unified public register of postal operators.
According to a posting on the website of the commission, the decision was made on October 2, 2018.
Euro Ukrposhta provides services for receiving, processing, transporting and delivering postal items, performs user orders for postal money transfers throughout Ukraine (except for the government uncontrolled territories) as well as internationally from the territory of the European Union and the Middle East: Israel, Turkey, Egypt and Syria.
Sky Logistics provides services of receiving, processing, transporting and delivering postal items, performs user orders for postal orders throughout Ukraine (except for the government uncontrolled territories).
According to the public register of companies and individual entrepreneurs, Euro Ukrposhta has a charter capital of UAH 5,000 and registered in Chernivtsi. The company’s owners are two individuals: Roman Makoviychuk and Oleksandr Timush.
The company Sky Logistics has a charter capital of UAH 48,000 and registered in Kyiv. Its founder is individual Oleksiy Hryniuk.
In February, PJSC Ukrposhta turned to Euro-Ukrposhte LLC with a proposal to inform its customers that the latter is not related to the state-owned enterprise.
EURO UKRPOSHTA, POSTAL OPERATORS, REGISTERS, REGULATOR, SKY LOGISTICS
A concept of regulating transactions with cryptocurrencies names the National Commission for Securities and the Stock Market of Ukraine the main regulator on the cryptocurrency market and authorizes the commission to license cryptocurrency exchanges and cryptocurrency exchange points, according to materials posted on the website of the commission. In particular, it is proposed that the National Commission for Securities and the Stock Market will classify and define tokens as financial tools, regulate the exchange and purchase and sale of cryptocurrency through cryptocurrency exchanges, as well as Initial coin offerings (ICO).
At the same time, according to the concept, State Financial Monitoring Service is authorized to supervise cryptocurrency exchanges, and the Ministry of Finance and the State Fiscal Service – to supervise payment of taxes on income from operations with cryptocurrencies.
In addition, the concept proposes to define the concept of a cryptocurrency and a token. In particular, the token is proposed to be considered a “centralized or decentralized unit of accounting, which is based on mathematical calculations using a computer network and has cryptographic protection.” “Cryptocurrency is a token that functions as a way of exchanging and preserving value,” the commission said on the website.
CRYPTOCURRENCY MARKET, NATIONAL COMMISSION, REGULATOR, STOCK MARKET
