The asset management companies of the accumulated pension fund will be selected via tenders.

This initiative is stipulated in a draft law on amending some Ukrainian laws regarding the introduction of the accumulated pension insurance system and single principles of pension accounting registered in the parliament on April 30.

The bill does not specify the tender procedures, but does stipulate that those asset management companies seeking to be selected at the tenders must have worked in the non-pension fund asset management market during the past five years, they are to have at least UAH 20 million of funds under their management, and must support net worth in line with the license requirements.

According to the bill, the council of the non-pension fund will approve the key directions of the investment policy and requirements for the investing of pension assets of the accumulated pension fund and the distribution of pension assets between asset management companies.

The administrator of the accumulated pension fund will be the executive directorate of the pension fund. The assets of the accumulated pension fund will be stored at a depositor through which all transactions with the pension assets will be carried out.

Pension assets will not be included in the liquidation mass if asset management companies, administrators and depositors become bankrupt. Also, they will not be included in the liquidation mass of banks in which they are deposited.