The document introduces a split between public and alternative funds following EU norms
The National Securities and Stock Market Commission, together with the relevant parliamentary committee and the World Bank, has prepared updated legislation on investment funds. The draft law has already been submitted to the Verkhovna Rada for registration. This is reported by the portal PromPolitInform, citing information from NSSMC, based on data from the Verkhovna Rada Committee on Finance, Tax and Customs Policy.
The key goal of reforming the collective investment sector is the implementation of European standards into Ukrainian legislation. This move will not only protect investors but also open new channels for attracting capital for economic development and infrastructure reconstruction.
New classification of instruments
The bill introduces a clear division into public investment funds (UCITS) and alternative investment funds (AIF). This structure complies with the current requirements of European directives, in particular 2009/65/EC and 2011/61/EC, as well as a number of EU regulations on social entrepreneurship and long-term investments.
For fund founders, the list of available organizational and legal forms is being expanded, allowing for more flexible investment strategies. The document provides for the possibility of funds operating both with and without legal entity status.
Asset protection and international integration
To increase market transparency, an institute of custodial institutions is being introduced to be responsible for accounting and safekeeping of assets. These changes are aimed at strengthening control over the management of investor funds.
The legislative initiative also regulates the access of Ukrainian funds to European markets and the procedures for foreign financial institutions operating in Ukraine. This will facilitate the integration of domestic capital into the European financial space.
Transition period for businesses
Current market participants and collective investment institutions will be able to adapt to the new requirements gradually. The transition period will allow companies to carry out necessary transformations without halting their ongoing operations.
Illustrative photo: Public domain
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