Publication date: 11.07.2024
The procedure for obtaining an investment licence
Investment activity is an important component of Ukraine's economic development, contributing to the attraction of capital, creation of new jobs and development of infrastructure. In order to carry out investment activities, business entities must obtain the relevant licences to ensure compliance with the established requirements and standards. In this article, we will review the main aspects of the procedure for obtaining an investment licence in Ukraine, the regulatory framework, requirements for applicants and the application procedure.
The regulatory framework
The process of obtaining an investment licence in Ukraine is regulated by several key legal acts:
TheLaw of Ukraine "On Capital Markets and Organised Commodity Markets":
- The main law regulating activities in the capital markets establishes requirements for the provision of investment services, rights and obligations of market participants, as well as liability for violations of legislation in this area.
Law of Ukraine "On Financial Services and State Regulation of Financial Services Markets":
- Defines the legal framework for the provision of financial services, including investment services, establishes requirements for financial institutions, the procedure for licensing and control over their activities.
Law of Ukraine "On Investment Activity":
- Defines the legal, economic and social basis for investment activity in Ukraine, establishes the procedure for making investments and protecting investors' rights.
Law of Ukraine "On Licensing of Economic Activities":
- Regulates the licensing of economic activities, including investment activities. It defines general requirements for licensees, the procedure for submitting and reviewing applications for licences, and the grounds for cancellation of licences.
Civil Code of Ukraine (CCU):
- Regulates contractual relations between investors and investment service providers, defines the rights and obligations of the parties, and mechanisms for protecting investors' rights.
Code of Administrative Offences of Ukraine (CAO):
- Provides for administrative liability for violation of the requirements of the legislation on investment services, non-compliance with the standards and rules of activity in the financial markets.
National Securities and Stock Market Commission (NSSMC):
- A regulatory body that supervises and controls the activities of capital market participants, including investment service providers.
Types of investment licences
There are several types of investment licences in Ukraine, depending on the nature and scope of services provided:
Investment Services Licence:
- A permit to carry out activities related to the provision of investment services, including brokerage, dealer activities, asset management, advisory services, etc.
Investment Fund Management Licence:
- A permit to carry out activities related to the management of investment funds and other collective investment schemes.
Asset Management Licence:
- A permit to carry out activities related to the management of investors' assets, including the management of securities portfolios and other financial instruments.
Licence to organise securities trading:
- A permit to carry out activities related to the organisation of securities trading on stock exchanges and other organised markets.
Requirements for applicants
In order to obtain an investment licence, a business entity must meet a number of requirements set out in the legislation. The main requirements include:
Organisational and legal form:
- Only legal entities registered in accordance with the laws of Ukraine may obtain an investment licence.
Material and technical base:
- The business entity must have the necessary material and technical base to carry out investment activities, including office premises, equipment, software, etc.
Compliance with legal requirements:
- Investment activities must comply with the requirements of the legislation on capital markets and financial services, including compliance with quality standards, protection of investors' rights, prevention of fraud and market manipulation.
Staff qualifications:
- An entity must have qualified employees who have the necessary knowledge and experience to carry out investment activities. The staff must have appropriate education, training and certificates.
No criminal record:
- Managers and employees of the business entity must not have any convictions for serious crimes, crimes against property, life and health, as well as other crimes provided for by law.
The procedure for applying for a licence
The procedure for applying for an investment licence includes several stages:
Preparation of documents:
- The applicant must prepare a package of documents required to obtain a licence. This package includes:
- An application for a licence in the prescribed form.
- Copies of constituent documents.
- A copy of the state registration certificate.
- Documents confirming the availability of the material and technical base.
- Documents confirming compliance with legal requirements.
- Qualification documents of employees.
- Certificate of no criminal record for managers and employees.
- An application for a licence in the prescribed form.
Submission of theapplication:
- The application together with the package of documents is submitted to the National Securities and Stock Market Commission or other competent authority depending on the type of investment activity. Documents may be submitted in person, by post or electronically through specialised portals.
Consideration of theapplication:
- The licensing authority reviews the application and checks the applicant's compliance with the established requirements. This includes verification of the submitted documents and a possible on-site inspection at the place of business.
Making a decision:
- Based on the results of the inspection, the licensing authority makes a decision to issue or refuse to issue an investment licence. In the event of a refusal, the applicant is provided with a justification of the reasons for the refusal and recommendations for eliminating deficiencies.
Obtaining the licence:
- In case of a positive decision, the applicant receives a licence for investment activity. Legal marketplace "CONSULTANT" will help you solve any problem! All the necessary services at any time: analysis of documents, legal analysis of the situation, legal analysis of the situation, written advice, verification of documents by a lawyer, legal analysis of documents, legal opinion of a lawyer, legal opinion of a lawyer, legal analysis. Are you looking for an online lawyer or a lawyer online? Choose CONSULTANT - a lawyer is always at your side!
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