The National Bank specified for the period of martial law:
- the procedure for canceling a license for the provision of financial services;
- a list of signs indicating that the provider of financial services carries out risky activities.
Corresponding Resolution of the Board of the NBU of December 22, 2022 No. 247 “On approval of the Regulation on the cancellation of the license for the provision of financial services during the period of martial law and amendments to the Resolution of the Board of the National Bank of Ukraine No. 39 of March 6, 2022” entered into force December 27, 2022 and is valid until the termination or cancellation of martial law in Ukraine.
The regulator explained that this was done in order to strengthen the protection of the interests of depositors and creditors of non-bank financial institutions, as well as legal entities that are not financial institutions, but have the right to provide separate financial services.
Regarding cancellation of the license
A decision to revoke a license may be made if, in particular, one of the following grounds exists:
- non-fulfillment by the financial services provider of the order, the decision of the National Bank to eliminate identified violations of the license conditions;
- repeated violation of the license conditions by the provider of financial services;
- detection of the fact (facts) of the financial services provider carrying out risky activities;
- refusal of the financial services provider to conduct an inspection by the National Bank;
- non-compliance of the ownership structure of the provider of financial services or the owners of a significant participation in it with the requirements of the legislation of Ukraine;
- application by the National Bank two or more times during the year of influence measures for violation of the requirements established by law regarding interaction with consumers during the settlement of overdue debts (requirements regarding ethical behavior) and others.
Separately specified the procedure and conditions for canceling a license during martial law. Thus, heads of financial service providers will be invited to participate in a meeting of the NBU Board or the Committee on Supervision and Regulation of Non-Banking Financial Services Markets, where the issue of license cancellation is considered. It is explained that this will enable them to promptly provide objections or necessary explanations.
Regarding the list of signs that indicate the implementation of risky activities
The National Bank clarified the list of signs, the presence of which is the basis for concluding that the provider of financial services carries out risky activities.
In particular, the following characteristics have been specified for:
- all non-banking financial institutions and legal entities that are not financial institutions but have the right to provide separate financial services;
- credit unions;
- insurers;
- financial companies.
During the period of martial law, the signs of risky activity, the list of which is specified in the Regulations on the application of influence measures by the National Bank of Ukraine in the sphere of state regulation of activities in the markets of non-banking financial services, approved by the resolution of the Board of the NBU dated February 1, 2021 No. 12 (with changes).
