Draft Law of Ukraine

"On Amendment of the Law of Ukraine "On Institutes of Joint Investment (Share and Corporate Investment Funds)"

The National Bank of Ukraine suggests suspending application of Articles 29 and 32 of the Law of Ukraine "On Institutes of Joint Investment (Share and Corporate Investment Funds)" to banking institutions.

The draft clearly states that banks have the right to perform activity on managing assets.

The draft prohibits banks from acting as keepers of securities for institutes of joint investments, provided they perform management of these securities.

The draft clearly determines that companies on managing assets include banks meeting the established requirements.

The draft, if approved, will permit bringing the Law of Ukraine "On Institutes of Joint Investment (Share and Corporate Investment Funds)" to conformity with the current legislation of Ukraine, namely:

• clause 5 of part four of Article 47 of the Law of Ukraine "On Banks and Banking Activity", which says that banks, provided they received a written permit of the National Bank of Ukraine, shall have the right to perform transactions on trusted management of funds and securities under agreements with legal entities and natural persons and simultaneously perform other types of professional activity at the market of securities;
• Article 1 and Article 4 of the Law of Ukraine "On Financial Services and State Regulation of Markets of Financial Services", according to which financial institutions (including banks) have the right to render such financial services as trusted management of financial assets.