AUST, UAIB turn to IFIs for help in reforming Ukrainian securities commission
The Association Ukrainian Stock Traders (AUST) and Ukrainian Association of Investment Business (UAIB) have turned to international financial institutions (IFIs) and other partners of Ukraine for professional help in reforming the National Commission for Securities and the Stock Market of Ukraine.
The joint open letter has been sent by the associations to the International Monetary Fund (IMF), World Bank, European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), the U.S. Agency for International Development (USAID), American Chamber of Commerce in Ukraine, European Business Association (EBA) and International Organization of Securities Commissions (IOSCO).
The professional associations on behalf of stock market players, investors and infrastructure entities support efforts of Ukrainian authorities aimed at reforming and developing the Ukrainian financial sector, particularly enhancement of institutional and financial independence of the securities commission.
The signers of the letter point out the importance of consistent work in this direction on the model of reformation of operations of the National Bank of Ukraine (NBU). First the internal structure of the commission should be reorganized, including the organization, functional and material, and then the powers of the regulator should be revised.
"This phased and coherent approach increased the quality of regulation and stabilized the banking market in the short term," the signers said.
The associations believe that bringing Ukrainian legislation in line with the IOSCO goals and principals of regulation in the securities area and receiving the status of the side of the IOSCO Multilateral Memorandum of Understanding should bring trust of domestic and international investors to the national capital market.