The National Securities and Stock Market Commission of Ukraine has published an update on legislation to broaden investment beyond government bonds, simplify corporate fundraising and align market infrastructure with European Union rules. The package combines an enacted securitization framework with proposals still undergoing parliamentary or interagency review. Parliament adopted the securitization and covered bonds law on Sept. 16, and it takes effect Jan. 1, 2027. It enables banks and companies to raise financing against assets, while covered bond investors have recourse to both the issuing bank and a separate asset pool. The law’s initiators estimate that the mechanism could attract about UAH 150 billion over five years. For retail investors, proposed personal investment accounts would exempt investment income from tax after holdings of at least three years, extending to eligible domestic securities the tax advantage already available to government bonds. This addresses the tax disparity the Commission previously highlighted as an obstacle to private capital raising. Individuals held UAH 167.5 billion in government bonds as of Oct. 1. Separate pending bills would introduce investment funds under European standards and align voluntary pension funds with European requirements. For issuers, proposed electronic registration of nonpublic share issues through the Central Depository would reduce registration time from four months to one week. These measures remain proposals rather than operational arrangements. Infrastructure legislation prepared with the European Bank for Reconstruction and Development has been submitted for interagency agreement before parliamentary submission. The accompanying concept envisages stronger settlement finality and collateral protection in insolvency, revised licensing and risk requirements for central securities depositories and central counterparties, and mandatory clearing for designated derivatives. It also provides for central counterparty recovery and resolution and licensed infrastructure using distributed ledger technology. Separately, the Commission supports a proposed exchange holding company with a strategic foreign investor, while seeking a state blocking stake of 25% plus one share and competitive investor selection. Virtual asset legislation remains under preparation for second reading. The Commission continues to seek the principal regulatory role, with defined responsibilities for the National Bank of Ukraine. Following adoption, an approximately six-month transition would be needed to develop 18 implementing acts, placing the expected operational launch later than Jan. 1, 2027.
National Securities and Stock Market Commission of Ukraine reviews capital market reforms and plans for implementation in 2027
The National Securities and Stock Market Commission of Ukraine reviewed reforms to expand investment beyond government bonds, including proposed tax incentives, European fund standards and faster share registration. The enacted securitization and covered bonds law takes effect Jan. 1, 2027, while infrastructure reforms remain under development. Virtual asset rules are expected to become operational later than that date, following legislative adoption and preparation of 18 implementing acts.