The National Bank and the National Commission for Securities and Stock Market will become the successors of the old structure (National Commission for Financial Sservices Market) starting July 1, 2020.
According to the National Bank, to which supervision of the insurance market and financial companies is to be transferred, the new law will make Ukrainian financial system more efficient, transparent and reliable, improving the bureaucracy for local companies as well as improving the consumer protection.
The draft law was first proposed by the Verkhovna RADA in July 2016; from this point, the need to reform the supervision of the non-banking financial sector had been under long negotiations. The draft was finally approved by the Verkhovna RADA on September 12, 2019.
The three main stages after the adoption of the law include:
A transition period (2019 - 2020) - the creation of new functions within the National Bank, development of new sectorial laws and regulations, to be discussed with insurance market participants and experts;
An adaptation period (2020 - 2021) - the assessment of the insurance market and the adoption of regulatory acts;
A development period (2022 - 2025) - the gradual implementation of an action plan, building a competitive market, developing the infrastructure and market behavior.