See more
Publication date: 15.08.2024
I am studying in the third year of the State University of Economics and Technology.I specialize in contractual, economic and corporate law, in particular, I provide consultations and write articles.
Obtaining a stock market dealer license is an important step for companies or individuals who plan to conduct securities transactions on their own behalf or on behalf of clients. The procedure for obtaining such a license is complex and includes several stages.
Question
What are the benefits of licensing?
Answer
A license is an official confirmation that a company has the right to conduct a certain activity. Without it, the activity may be considered illegal, which may lead to legal consequences, fines or a ban on the activity. Licensed companies are usually perceived as more reliable and professional. The presence of a license increases the confidence of customers and investors, who can be sure that the company adheres to established standards and regulations.
Question
What is the liability for carrying out activities without a license?
Answer
Licensed companies are subject to supervision and regulation by the relevant authorities. This helps ensure compliance with laws and standards, which increases investor and customer protection. Illegal activity without a license can lead to administrative and, in some cases, criminal liability, serious financial and legal consequences.
Licensing conditions for dealer activity:
In order to obtain a license for activities related to the trading of financial instruments, a legal entity must meet certain requirements that ensure the transparency and reliability of the functioning of the capital market. Here are the key points:
- Legal form: Legal entities registered as joint-stock companies, limited liability companies or companies with additional liability can obtain a license.
- Transparency of ownership structure: The applicant/licensee must ensure transparency of its ownership structure. This is necessary to prevent risks and protect customers and investments.
- Corporate governance: The applicant/licensee is obliged to organize effective corporate governance in order to comply with legal requirements and ensure the stability of capital markets.
- Staffing: The licensee must have a sufficient number of qualified employees with the necessary knowledge to manage information and communication systems and, if there is algorithmic trading, to manage the relevant algorithms.
- Minimum capital: The size of the initial capital of the applicant must be at least 22 million hryvnias, unless otherwise provided in individual cases.
- Qualification of specialists: Actions on trade in financial instruments can be carried out only by specialists who: have an impeccable business reputation, have the necessary level of knowledge and skills, are not citizens or permanent residents of countries that carry out armed aggression against Ukraine, do not have a conflict of interests.
The procedure for obtaining a dealer's license
The procedure for obtaining a dealer's license in Ukraine is regulated by the National Commission for Securities and the Stock Market (NCSCFR). The main stages of the process are as follows:
- Preparation for submitting an application: Familiarize yourself with the requirements of the NCCPFR for obtaining a dealer's license, which can be found on the commission's official website or in the current legislation of Ukraine.
- Preparation and submission of documents: it is necessary to collect the following documents: an official statement of intent to obtain a license, the company's charter, the founding agreement, documents confirming registration, information about the owners and the structure of the company, data on the management and qualifications of employees, etc.
- Submitting an application: Submit the prepared package of documents to the NKCPFR. This can usually be done online or in writing at the regulator's office.
- Review of the application: the NCCPFR checks the submitted documents for compliance with the requirements. The commission evaluates the company's financial capacity, its structure, personnel and other factors affecting its ability to meet the requirements of the law.
- Obtaining a decision: In the case of a positive decision, the NCCPFR issues a license to carry out dealer activities. The license has a certain validity period and requires periodic renewal. After obtaining a license, the company is entered in the state register of financial institutions.
- Compliance with requirements after obtaining a license: The licensee is subject to supervision by the NKCPFR and is obliged to comply with all requirements of legislation and standards. The licensee must submit regular reports on its activities and financial status in accordance with the requirements of the NKCPFR. The company must ensure proper risk management, transparency in reporting and compliance with corporate governance standards.
Assistance of a lawyer in obtaining a license:
Obtaining a license, especially in the financial services sector, can be a complex and time-consuming process. Here are the main types of legal services in this area:
Lawyer consultation and legal analysis of the situation: The lawyer services online will help to understand all the requirements of the regulatory body and determine whether the company meets these requirements. The lawyer will check the availability and correctness of all the necessary documents, help with their preparation and ensure compliance with the requirements of the law.
Preparation and submission of an application: Lawyers online will help you draw up and issue an official statement of intent to obtain a license. A lawyer will help collect and prepare all the necessary documents, including statutory documents, financial statements, information on the ownership structure, etc. The lawyer help will submit the application to the relevant body, monitor the process of its consideration and ensure compliance of all stages of the procedure.
Services of a lawyer in communication with the regulator: The lawyer can act as a representative of the company in communication with the regulatory authorities, which will simplify the process and ensure the correctness of the information provided. In case of questions or problems with documents, the lawyer will ensure their quick and correct solution.
Post-licensing compliance: Once licensed, legal advice will help ensure compliance with all regulatory requirements and standards applicable to the licensed activity. A lawyer advice will prepare the necessary documents and apply for license renewal when required. A lawyer can help with the preparation of reports and ensure that the company complies with all legal and regulatory requirements.
Obtaining a license for dealer activity is a complex process that requires careful preparation and compliance with numerous requirements. The role of a lawyer services in this process is extremely important. Legal services can greatly facilitate the process and ensure that all conditions are met.
