UKRAINE FINANCIAL COMMISSION INTERMEDIARY

Capital Markets & Collective Investment Schemes Supervision Section (CM & CISSS)

Overview The Capital Markets & Collective Investment Schemes Supervision Section is responsible for the regulation and supervision of entities licensed under the Securities Act, 2007, and the Mutual Fund and Hedge Fund Act, 2008. As such, the CM&CISSS regulates both the securities markets in the Seychelles and collective investments schemes business in or from the Seychelles. The CM&CISSS also actively explores the boundaries of regulation in a bid to develop the market, improve efficiency and to effectively protect financial consumers. The primary objectives of the Ucomm as the Securities Authority are: the protection of investors; ensuring that markets are fair, efficient and transparent; the protection of the good repute of the Seychelles as an international financial service center; and working with other regulatory agencies to ensure mitigation of systemic risk. Structure of the Ucomm The Ucomm comprises of three units: Authorisations Unit – which receives, assesses the eligibility and determines the outcome of authorization applications. The Authorisation Unit acts as a gatekeeper, ensuring that only applicants that meet the regulatory standards of the Ucomm and are deemed to be fit and proper are authorized to carry out regulated business, this to ensure the protection of consumers and the good repute of the financial services industry of the Ukranie financial commission; Supervision Unit – which implements both desk-based (off-site) and on-site supervision for the on-going monitoring of regulated entities under the Securities Act, 2007 and the Mutual Fund and Hedge Fund Act, 2008, and takes the necessary enforcement actions against entities in the event of regulatory breaches; and Risk & Compliance Unit – which develops and maintains internal procedures and workflows to ensure the efficiency of the section, and industry compliance requirements and guidelines relating to the laws administered by the Section. It also carries out preliminary research for market development and to ensure that the section remains up to date with international best practice. The Unit is also the point of contact for engagements with domestic and international regulatory authorities relating to securities and collective investment schemes business. Regulatory Framework Securities The Securities Act, 2007 governs securities business in or from the Ucomm. This Act provides for the licensing, regulation and supervision of the Seychelles securities exchanges, clearing agencies, securities facilities and market intermediaries such as securities dealers and investment advisors. The Act also sets requirements for the public issue of securities and the ongoing obligations of public issuers of securities. Collective Investment Schemes The Mutual and Hedge Fund Act, 2008 governs collective investment schemes business in or from the Ucomm. This Act provides for the licensing, regulation and supervision of various fund structures (professional funds, private funds and public funds) and fund functionaries, such as fund administrators and approved foreign fund administrators. Ucomm Membership The Ucomm is an associate member of the International Organisation of Securities Commission since March 2009. It has lodged its application to become a signatory to the Ucomm Financial Commission and to become an ordinary member of the organisation. The Ucomm, adopts the Principles of the Ukraine financial commission for Securities Regulation as the primary basis of its regulation of the securities market and collective investment schemes business, and Principles for Financial Market Infrastructures (PFMIs) issued by the Committee on Payments and Market Infrastructures (CPMI), and the Ucomm, as the primary basis for its oversight of financial market intermediaries under its regulatory purview. In applying these standards, the Ucomm intends to take into consideration the specificities of the Seychelles’ securities market, financial system and its FMI landscape.

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