Starting 9 February 2014, the official list of financial services (the "List") has been expanded by three new financial services:
- property management for financing construction objects and/or the performance of operations with real estate in accordance with the Law of Ukraine "On Financial and Credit Mechanisms and Property Management in Housing Construction and Operations with Real Estate";
- operations with mortgage assets for mortgage securities issuance; and
- banking and other financial operations performed in accordance with the Law of Ukraine "On Banks and Banking Activity".
Previously, all operations that (i) met the criteria of the definition of a financial service and (ii) were contained in the List, were acknowledged as financial services. As per the Law of Ukraine "On Financial Services and State Regulation of Financial Services Markets", dated 12 July 2001, No. 2664-III, a financial service is an operation with financial assets that is performed in the interest of third parties at one's own or such parties' expense or, in the cases envisaged by law, also with borrowed funds with a purpose of making a profit or securing financial assets' real value.
As of 9 February 2014, financial services that are not included in the List and not defined as such in other laws are prohibited.
The National Bank of Ukraine, the National Commission on Securities and Stock Market, and the National Commission Performing State Regulation of Financial Services Markets have the authority to decide whether a transaction qualifies as a financial service. If a transaction cannot be qualified as a financial service, the above-mentioned regulators may prohibit such transaction.
Financial institutions holding licences (approvals) for the provision of financial services as of 9 February 2013 may continue to provide financial services under such licences (approvals).
The amendments are introduced by the Law of Ukraine "On Amendments to Article 4 of the Law of Ukraine "On Financial Services and State Regulation of Financial Services Markets", dated 10 October 2013, No. 643-IV.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.