National Securities and Stock Market Commission of Ukraine chair outlines proposed investment fund reform based on EU standards

In a Forbes Ukraine column, Oleksii Semeniuk, chair of the National Securities and Stock Market Commission of Ukraine, outlined how proposed investment fund legislation would broaden access to professionally managed investments beyond domestic government bonds and help businesses attract private capital. The investment funds bill, No. 16137, previously considered by the commission, has been recommended for adoption at first reading by parliament’s Committee on Finance, Tax and Customs Policy. Public funds following the EU Undertakings for Collective Investment in Transferable Securities framework would serve a broad investor base, with stricter requirements for asset composition, diversification and disclosure. Alternative funds modeled on the Alternative Investment Fund Managers Directive would invest in a wider range of assets, including real estate and private company stakes, primarily for experienced and professional investors. Management companies would make investment decisions, while independent institutions would hold fund assets and check transactions against fund rules. Specialized funds could invest in startups, social enterprises and infrastructure projects, providing a potential channel for private capital into Ukraine’s reconstruction. The reform forms part of Ukraine’s EU accession obligations and is linked to work on personal investment accounts, securitization and voluntary pensions. Further drafting is planned to add rules for money market funds, which could offer a conservative alternative to bank deposits.