The National Securities and Stock Market Commission (NSSMC) has introduced new criteria for identifying businesses of critical importance, which makes it more difficult to exempt employees from military service during a state of martial law.
- The National Securities and Stock Market Commission has updated the criteria for critical enterprises.
- Banks can no longer obtain this status through the National Securities and Stock Market Commission.
- Companies whose owners are subject to sanctions will not be granted this status.
- The requirements regarding the ownership structure of companies have been tightened.
What has changed in the rules?
The National Securities and Stock Market Commission (NSSMC) has announced an update to the criteria used to identify companies that are vital to the functioning of the country’s capital markets and economy. The aim of the changes is to establish a more transparent mechanism for reserving staff and to prevent potential abuse.
One of the key changes has been the tightening of requirements regarding the ownership structure of companies. From now on, legal entities whose owners include individuals subject to Ukrainian sanctions or residents of states supporting aggression against Ukraine will not be eligible for the status of a critically important enterprise.
Banks are being removed from the NSSMC’s regulatory remit
A separate provision provides for the elimination of overlapping powers between the National Securities and Stock Market Commission and the National Bank of Ukraine. In effect, this means that the determination of ‘systemically important’ status for the banking sector will fall more within the remit of the NBU. Consequently, banks will lose the ability to obtain ‘systemically important’ status through the NSSMC’s mechanisms for the subsequent retention of staff.
Protection for systemically important market participants
The new rules also provide for a separate safeguard mechanism for systemically important professional participants in the capital markets. Furthermore, the approaches to identifying critical enterprises amongst critical infrastructure assets are clarified. The Commission noted that the changes are aimed at ensuring the stability of the financial sector and preventing the use of the reservation mechanism by companies that do not meet national security requirements.
