4 April 2012
NEWSLETTER

Securities Commission Adopts Rules
for Acquisition of Professional Securities Brokers

On 13 March 2012 the Ukrainian National Commission on Securities and Stock Market (the "Commission") adopted the Regulation (the "Regulation") on granting a permit (the "Permit") for equity acquisition in a professional securities market participant, such as a security broker, asset management company, custodian, depositary, etc., resulting in direct or indirect holding or control over 10, 25, 50 or 75 percent of equity (the "Significant Shareholding"). The Regulation will be effective upon its approval by the Ministry of Justice.

The requirement to seek the Permit was established by the Law of Ukraine "On Amendments to Certain Laws of Ukraine on Regulation of Financial Services" effective from 9 January 2012. However, the Permits have been unobtainable due to the absence of the relevant implementing procedure. The Regulation introduces such a procedure.

The Regulation applies to legal entities and individuals (both residents and non-residents) intending to acquire the Significant Shareholding in any professional participant of the securities market except for banks. The Regulation provides for the list of documents to be submitted to the Commission for obtaining the Permit and sets forth the requirements to potential acquires, including, inter alia, clean business reputation, disclosure of shareholding structure and reliable financial standing of acquirers, as well as availability of their own (not borrowed) funds for acquisition of the Significant Shareholding in a professional securities market participant.

The term during which the Commission shall take a decision regarding issuing the Permit shall not exceed 30 calendar days from the date it receives acquirer's application with supporting documents.



For further information please contact senior partner Armen Khachaturyan
or associate Yevgen Porada.

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