The regulator adopted two new documents for these reasons: Regulations on measures of influence in the non-banking financial services markets and Regulations on the specifics of measures of influence in the form of banning from managing a financial institution and appointing a temporary administration.
From now on, all non-bank financial institutions can be subject to the following enforcement actions:
- A request to correct violations;
- A requirement to call an extraordinary meeting of participants of the financial institution;
- A fine;
- A temporary suspension or revocation of the license;
- Striking the company off the register;
- A conclusion of a written agreement.
A sign of risky activity for all non-banking market players without exception is a systematic violation of legislation on consumer rights protection and financial services advertising.
There are 5 additional characteristics of risky activity for insurers:
- A systematic creation of insurance reserves in an insufficient amount;
- A transfer of assets that do not apply to eligible assets, if such a transfer leads to a decrease in the amount of eligible assets accepted for coverage of the solvency and capital adequacy ratio to an amount less than 120% of the regulatory volume of assets;
- Two or more violations of compulsory criteria and standards in one reporting period;
- Insufficient income or excessive expenses that lead to a deterioration in the financial condition and create a risk of non-compliance with standards;
- An artificial improvement of financial results or reporting deviation.
The non-banking market of Ukraine now consists of 190 risky (non-life) and 20 life (life insurance) insurers, 301 pawnshops (used to be 302), 318 credit unions (used to be 322), 143 leasing companies (used to be 146), 969 financial companies (used to be 1020), and 65 insurance brokers. There are 36 payment systems established by residents and 13 international payment systems created by non-residents in the payment market.
Source: https://forinsurer.com/news/21/02/05/39220
Photos are from open sources.
