Document is being finalized for submission to the Parliament

Cabinet of Ministers of Ukraine at its meeting held on January 15, 2014 approved the draft Law of Ukraine «On the System of Investment Guarantee for individuals in the stock market», developed by the National Commission on Securities and Stock Market, the press service of SSMNC informs.

«Currently existing legal framework governing the activities of the stock market does not contain rules on compensation schemes for investors. Given that Ukraine has commitments to bring national legislation in line with EU legislation, as well as the implementation of the program of economic reforms in 2010-2014 «Prosperous Society, Competitive Economy, Effective State», which provides for the establishment of compensatory mechanisms to protect the interests of investors, the Commission has developed a bill. The main purpose of the investment guarantee functioning in the stock market is to provide for compensation payments to investors - individuals who have lost their investments due to lack of funds by the person who administers securities or collective investment institution (other than venture capital)» - said Maxim Libanov, Director of analysis, strategy and legislation development of SSMNC.

According to the developers, the bill provides that members of assurance investments (securities firms that administer securities, and asset management companies) chose the form of participation in the system of investment guarantee on their own - participating in a specially created entity - the investment guarantee fund for individuals at the stock market (in the case if the Commission's decides on the introduction of transfer payments to the Fund) or signing the agreement on mutual obligations.

The bill suggests setting the size of compensation payments for lost investment at 90 percent of non-returned investments, but not more than 200 thousand UAH for each fact of non-returned investment.