Analysis of the Resolution of the Board of the National Bank of Ukraine No. 127 dated October 18, 2024
General Provisions
Resolution No. 127 introduces amendments to a number of regulatory acts of the National Bank of Ukraine (NBU), aimed at aligning them with current legislation as well as improving regulation and supervision of activities in the financial services market.
Main Changes
1. Amendments to Resolution No. 39 dated March 6, 2022
- Supplementing paragraph 20-1 with new requirements regarding the physical and informational accessibility of premises for servicing clients with disabilities and persons with reduced mobility.
- Dividing paragraph 20-19 into two separate sub-paragraphs 20-19 and 20-20, which regulate the exclusion of certain regional subdivisions from the list of subdivisions where hostilities or temporary occupation are taking place.
2. Amendments to Various NBU Regulations
- Approval of amendments to regulations regarding the application of measures for violations of legislation requirements in the payment market, the procedure for authorizing the activities of providers of financial payment services, off-site supervision of financial services activities, etc.
- Amendments to the Regulation on General Requirements for Documents, including the addition of information on mandatory civil liability insurance for owners of land vehicles.
3. Obligations of Financial Service Providers
- Financial service providers are required to ensure the physical and informational accessibility of their premises for clients with disabilities and other persons with reduced mobility.
- Providing current and reliable information about accessible premises through various communication channels, including websites, mobile applications, contact centers, and publicly accessible places.
4. Recognition of Services as Financial and Payment Services
New criteria and procedures have been established for recognizing services or operations as financial or limited payment services, as well as procedures for detecting unlicensed activities in the non-bank financial services market.
5. Authorization and Reputation of Key Persons
- New requirements have been established for the business reputation and professional suitability of key persons of financial service providers.
- Procedures for submitting requests for non-application of signs of questionable business reputation to individuals, especially for those who are part of international corporate groups, have been introduced.
6. Off-Site Supervision
Terms and procedures for responding to written requests from the NBU regarding off-site supervision have been established, including the possibility of extending deadlines for providing necessary information under certain conditions.
7. Amendments to Document Approval Procedures
New requirements have been added to the procedure for approving charters, candidates for managerial and other key positions in the Motor (Transport) Insurance Bureau of Ukraine (MTIBU), as well as to the conclusion of outsourcing contracts.
8. Administrative Responsibility
New grounds for holding individuals administratively liable for violations of the procedure for providing financial services have been established, as well as limitations on individuals who have lost trust according to NBU decisions from holding managerial positions in legal entities.
9. Effective Dates
The resolution comes into effect on the day following its official publication, except for paragraph 3, which takes effect from January 1, 2025.
Recognition of the Invalidity of Previous Resolutions
The following resolutions have been recognized as invalid:
- Resolution No. 114 dated November 5, 2021, regarding the procedure for disclosing information by non-bank financial institutions;
- Paragraph 2 of Resolution No. 56 dated March 21, 2022, regarding amendments to certain regulatory acts of the NBU.
Notification of Financial Service Providers
The Department of Methodology for Regulating the Activities of Non-Bank Financial Institutions is tasked, after the official publication, with informing financial service providers and financial payment service providers about the adoption of this resolution.
Final Provisions
Financial service providers must comply with the new requirements of Regulations No. 217 and No. 199 by March 31, 2025, taking into account the amendments made.
