In October 2019, the Verkhovna Rada of Ukraine enacted legislation to dissolve the National Commission for State Regulation of Financial Services Markets, redistributing its functions between the National Bank of Ukraine (NBU) and the National Securities and Stock Market Commission (NSSMC).
Under this restructuring, the NBU assumed regulatory and supervisory responsibilities for insurance companies, credit unions, pawnshops, leasing and factoring companies, and microfinance institutions.
The NSSMC took over oversight of non-state pension funds, construction financing funds, real estate operations funds, and their administrators.
The reform aimed to consolidate financial market regulation, enhance oversight efficiency, and promote the development of Ukraine’s non-banking financial sector. A transition period allowed the NBU and NSSMC to coordinate the transfer of responsibilities and update the regulatory framework.
Effective 1 July 2020, the NBU became the regulator for non-bank financial services, overseeing entities such as insurance companies, leasing companies, factoring companies, credit unions, pawnshops, and other financial institutions.
To facilitate this transition, the NBU provided information on the peculiarities of non-bank financial institutions coming under its regulation and supervision, including training, changes in paperwork, and other useful information to help market participants adapt to the new regulatory environment.
The NBU continues to publish regular updates on regulatory decisions related to licensing, supervision, inspections, and financial monitoring, which can be found in the relevant sections of its “Supervision” pages.
The National Bank of Ukraine (NBU) oversees the insurance market with the following functions:
- Licensing: Issuing licenses to insurance companies, ensuring they meet legal and financial requirements.
- Supervision: Monitoring insurers’ activities to ensure compliance with laws and regulations, maintaining market stability.
- Regulation: Developing and implementing policies and standards to guide the insurance sector’s operations.
- Financial Monitoring: Overseeing financial transactions within the insurance market to prevent money laundering and financing of illegal activities.
- Consumer Protection: Safeguarding policyholders’ rights by ensuring fair practices and addressing complaints.
- Market Development: Promoting a competitive and transparent insurance market to enhance service quality and accessibility.
These functions enable the NBU to maintain a stable and reliable insurance sector in Ukraine:
