In more detail
The temporary licensing terms apply to new applicants, i.e., (i) non-banking institutions, and (ii) entities that are not financial institutions but have the right to provide certain financial services (e.g., financial leasing services). The NBU licenses may be granted for the following purposes:
- to raise financial assets with an obligation for their subsequent repayment
- to provide finance leasing services
- to carry out the lending activity, including on the terms of a financial loan
- to issue guarantees
- to provide services for the types of insurance defined by Articles 6 and 7 of the Law of Ukraine "On Insurance"
- to provide factoring services
An applicant would be required to: (i) submit to the NBU an application with a set of documents envisaged by NBU Resolution No. 27; and (ii) meet a number of requirements, including the requirements related to the business reputation and professional qualities of its directors and chief accountants, the amount of its charter capital and reserve capital, criteria and standards of capital adequacy and solvency, liquidity, profitability, asset quality and operational risks, development of internal rules for the provision of the respective financial services, accounting and registration systems, computers and premises, etc.
Key takeaways
Financial services providers which currently operate in the market pursuant to the existing licenses are not required to take any action following the adoption of NBU Regulation No. 27. New providers would need to apply for licenses pursuant to the temporary licensing terms. Such new providers may benefit from a number of new features compared to the old regime, such as the ability to submit an application in electronic form and permission to voluntarily to rescind their license.
