Legislation that regulates the non-banking financial sector requires a complete reboot, and not just making small changes. This opinion was expressed by First Deputy Head of the National Bank of Ukraine Kateryna Rozhkova in an exclusive interview with the Kyiv-based Interfax-Ukraine news agency.

Rozhkova said a meeting has already been held with donors, international partners on this issue and work on new legislation has begun. Already there are projects, full or partial, on which various specialists, including market players, have worked. But none of these bills has been brought to the stage where it can be submitted to parliament.

"Within nine months, absolutely all bills should be drafted. What do I mean by the word 'all?' For starters, I mean the law on financial services that must be completely updated in accordance with the new requirements. This is a framework law for the entire financial sector, which should determine basic principles, main areas, etc. Further, in accordance with this law, it is necessary to work out the rest of the sectoral legislation and adopt everything in a package so that there are no conflicting norms, misunderstandings, fuzzy wordings or different terminologies. Otherwise, it turns out that laws are simple, but there will be many explanations," Rozhkova said.

Asked why the transition period was set to nine months, she noted that initially, in the first version of the law, it was proposed to allocate six months for the transition period, but the market began to worry that there was little time. To make the transition smoother, 12 months were proposed and a compromise was reached on nine months.

"I believe that despite the enormous amount of work associated with the technical transfer of functions, the period should be shortened. After all, the market has been functioning all this time. New companies emerge and things happen with existing ones, they have some questions that need to be resolved immediately... The longer the transition period, the more difficult it is to assume that it will ultimately be transferred in terms of the quality of the market itself," she said.

In addition, according to Rozhkova, initially the law provided that no changes to the bills should be made for the period of the transfer of powers, but the market itself requested that the commission remain with this right, arguing that nine months is a long enough period for the market, and issues may arise that require a speedy resolution.

"In the case of a veto, the commission will not be able to. We still will not be able to respond to the situation, and the market will fall into a legal vacuum. In the wording of the law that was adopted, the commission has this right, and this is basically correct," she said.