The Ukraine National Commission on Securities and Stock Market (NSSMC) has reviewed a draft law that would amend the framework for housing construction fund managers, and signalled it will test the proposals with market participants to identify investor-protection risks before relaying feedback to the bill’s authors. The draft would allow a construction financing fund manager to change its status to a developer, revise authorised-capital requirements for construction financing fund managers, introduce a succession mechanism for rights and obligations of a previous customer under engineering-network contracts, and prevent reductions in a previously agreed construction order volume. NSSMC member Arsen Ilyin highlighted that converting a fund manager into a developer changes the nature of legal relationships and accountability for citizens’ funds, requiring safeguards to avoid additional investor risks. To support its assessment, the NSSMC plans to survey real estate licensees, conduct expert analysis of the proposals, submit conclusions to the draft law’s authors for further consideration, and hold additional consultations with lawyers, including those representing investors.

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