Ukraine National Commission on Securities and Stock Market approves outsourcing rules while keeping firms responsible for outsourced functions

The Ukraine National Commission on Securities and Stock Market has approved new rules allowing professional participants in the markets to formally engage external specialists or companies to perform certain functions. The measure creates a regulatory framework for outsourcing while making clear that the regulated firm remains responsible for the final outcome. Under the rules, an external provider must have sufficient resources, qualified staff and an impeccable business reputation. Its business profile must match the work assigned to it. Even where functions such as internal audit or information technology are outsourced, accountability to clients and to the Commission remains with the hiring company. The Commission described the changes as a step toward aligning Ukrainian legislation with European Union standards.