Coordination of acquisition (increase) of significant participation in financial companies

Recently, there have been changes in the legislation of Ukraine, which appeared, in the replacement of the state regulator, that should agree on the acquisition or increase of significant participation in financial institutions.

The NBU is creating a new body to regulate the non-banking services market

Thus, until recently, the applicant, who had to increase the percentage of ownership of the authorized capital or shares of the company, had to apply with the application and the collected documents to the regulator in the person of Natskomfinposlug. However, the Law of Ukraine №79-IX, dated 12.09.2019 stipulated that from 01.07.2020 the NBU and the National Commission on Securities and Stock Market will become the legal successor of Natskomfinposlug. To comply with the new requirements of the law, the National Bank of Ukraine established a Committee on Supervision and Regulation of Non-Banking Services Markets (Decision of the NBU Board №498-rsh of July 25, 2020). The competence of the newly established Committee, in addition to licensing and registration activities, also includes the approval of substantial participation in financial institutions.

Procedure for approving the acquisition or increase of a substantial participation in a non-bank financial institution

The main requirements for the applicant, a natural or legal person, and the procedure for approval can be found in the Law on Financial Services №2664-III of 12.07.2001. Thus, in accordance with the mentioned legislative acts, the applicant must make sure that he does not violate the antimonopoly legislation of Ukraine, and if his actions are lawful, submit the following documents to the above-mentioned NBU Committee:

• Statement of the established sample on receiving the consent of acquisition (increase) of essential participation in financial institution;
• Schematic representation of ownership of significant participation;
• A package of necessary documents to prove identity, solvency, business reputation, transparency of the ownership structure of a financial institution;
• A copy of the permission of the Antimonopoly Committee of Ukraine for concentration – in cases provided by law.

The Committee shall consider the documents submitted by the applicant no later than within one month, and agree to acquire or increase a substantial participation, or refuse the applicant. In case of unsatisfactory decision, the applicant may apply to the administrative court to declare the decision of the Committee illegal and annul it.