The Ukraine National Commission on Securities and Stock Market published an official interpretation of what constitutes “transactions with CII assets”, responding to requests from market participants and aiming to remove legal uncertainty for asset management companies and collective investment institutions in day-to-day operations. The interpretation treats transactions with collective investment institution (CII) assets as actions involving property formed for collective investment funds that are carried out under the law to generate economic benefit or preserve assets. It clarifies that both profitable and loss-making transactions can qualify where they comply with the investment declaration, are economically feasible and are properly documented, citing examples such as asset disposals (including changes of parties in derivative contracts), derivatives with premiums, receipt of penalties, dividends, interest, insurance payments and deposits, transfers for use (including licences and leases), transactions where proceeds exceed the asset’s value, revaluation under International Financial Reporting Standards, and transactions where the CII receives more funds than it spent. The resolution enters into force on the day following its publication on the Commission’s official website.

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