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Client: Eu Delegation to Ukraine | 01/04/2012 - 01/10/2013

Evaluation of the Past and Preparation of the Future EU-Funded Co-operation in the Area of Financial Services, Assesment of the Current Development in the Financial Services Sector

Review of Financial Services Sector

  • Reviewed factors accounting for the low levels of access by issuers and investment by savers in the securities market.
  • Reviewed the organizational structure and supervision of credit unions.

Capacity Building Activities

  • Established an investor compensation scheme funded by the industry to compensate clients, and/or securities held at the time of the default by a dealer, fund manager or custodian holding them.
  • Introduced the conditions (including unitisation of pension fund contributions) for the development of the non-state pension fund industry.
  • Introduced the Pillar 2 pension scheme.
  • Established the financial ombudsman scheme.
  • Developed and introduced financial reporting methodologies for credit unions.
  • Setting up an investor compensation scheme, compensating failure to repay clients or securities held at the time of default by a dealer, fund manager, or custodian holding them for the client; funded by the industry.
  • Finalised the methodologies for valuation of non-state pension funds (recommendations from the preceding project had been accepted by SCSSM and SCRFSM).
  • Assisted the establishment of an investor compensation fund following up on recommendations issued by the preceding EU-funded project.

The development of a consolidated policy for the financial sector.

The policy will emphasise a legislative programme compatible with EU Directives and establish the foundations upon which improvements in supervisory and regulatory standards, market infrastructure and consumer protection can be achieved.

Strengthening financial supervision of the three supervisory authorities, including identification and consolidation of the financial groups.

This will involve:

  • Provision of support to strengthen the financial services sector by increasing awareness and providing extensive training.
  • Development and expansion of the programme of Government securities issues and an improved primary dealer system in the secondary market (following-up the activities initiated under the USAID FINREP project).
  • Rationalisation of the securities market trading and settlement infrastructure. In particular, establishing a single depository and a central counterpart system (following-up the activities initiated under the USAID FINREP project).

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