The Ukraine National Commission on Securities and Stock Market has published a draft decision to amend its regulatory framework to protect citizens who invest in construction projects, citing a recent increase in developer bankruptcies and related market and social risks. The proposal would add new disclosure and conduct requirements for management companies that contract with citizens for participation in the CFF. Under the draft amendments, the management company would have to publish on its website information on the opening of bankruptcy or insolvency proceedings against a developer and the results of those proceedings. It would also be required to stop financing the construction, would be prohibited from entering into new CFF participation agreements with citizens once insolvency proceedings have been opened against the developer, and citizens would be allowed to refuse further fund transfers during the insolvency case without this being treated as a breach of contract. Comments and proposals are invited within 10 days, ahead of further approval of the document.

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