RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of December 11, 2020 No. 157

About approval of the Regulations on establishment of criteria by which the risk degree from implementation of activities by participants of the market of non-bank financial services, their public importance is estimated, based on which frequency of conducting scheduled inspection inspections, and procedure for their application is determined

According to Articles 7, of 15, 55-1, 56  of the Law of Ukraine "About the National Bank of Ukraine", to Articles 21, 28 - 30 Laws of Ukraine "About financial services and state regulation of the markets of financial services", for the purpose of establishment of criteria by which the risk degree from implementation of activities by participants of the market of non-bank financial services, their public importance is estimated, based on which frequency of conducting scheduled inspection inspections is determined, and procedure for their application the Board of the National Bank of Ukraine DECIDES:

1 Approve Regulations on establishment of criteria by which the risk degree from implementation of activities by participants of the market of non-bank financial services, their public importance is estimated, based on which frequency of conducting scheduled inspection inspections, and procedure for their application which is applied is determined.

2. The resolution becomes effective from the date of, its official publication following behind day.

Approved by the Resolution of Board of the National Bank of Ukraine of December 11, 2020 No. 157

Regulations on establishment of criteria by which the risk degree from implementation of activities by participants of the market of non-bank financial services, their public importance is estimated, based on which frequency of conducting scheduled inspection inspections, and procedure for their application is determined

I. General provisions

1. This Provision is developed according to the Laws of Ukraine "About the National Bank of Ukraine", "About financial services and state regulation of the markets of financial services" (further - the Financial services act).

2. This Provision their public importance (further - assessment of public importance of participants of the market of non-bank financial services) determines criteria by which the National Bank of Ukraine (further - National Bank) estimates risk degree from implementation of activities by participants of the market of non-bank financial services (further - risk degree assessment), based on which frequency of conducting scheduled inspection inspections of participants of the markets of non-bank financial services, regulation and of which exercises supervision National Bank, and procedure for their application, is determined.

Action of this Provision does not extend to participants of the markets of non-bank services which have only the license for money transfer in national currency without opening of accounts and/or on implementation of currency transactions.

3. The National Bank during assessment of risk degree and public importance of participants of the market of non-bank financial services uses risk - the oriented approach and considers pro-rata rule concerning determination of intensity of supervising actions (frequency of inspection checks) which assumes focusing of supervision on those participants of the market of non-bank financial services (except consumers of financial services) (further - participants of the market of non-bank financial services) which have high degree of public importance of participants of the market of non-bank financial services and risk from implementation of their activities.

4. Terms which are used in this Provision are used in the values determined in the Law of Ukraine "About the National Bank of Ukraine", the Financial services act and regulatory legal acts concerning regulation of the markets of non-bank financial services, national and international standards.

5. The National Bank estimates risk degree and public importance of participants of the market of non-bank financial services once a year, no later than December 15 of year in which assessment is carried out. The period of assessment is the period since October 01 the year preceding year of carrying out estimation by National Bank till September 30 of the current year in which such estimation is carried out. Date of assessment is the last date of the period of estimation.

The National Bank if is not present complete (for the entire period which is subject to estimation) information necessary for evaluating the participant of the market of non-bank financial services in the criteria determined by this Provision estimates it based on information for the period in which it is, but in limits since October 01 year, to prior year of assessment by National Bank, till September 30 of the current year.

6. The plan of conducting inspection checks of participants of the market of non-bank financial services by National Bank for the next year is constituted based on results of assessment of risk degree and assessment of public importance of participants of the market of non-bank financial services taking into account the available supervising resources and priorities.

7. National Bank on the basis risk - the oriented approach and considering pro-rata rule, has the right to determine participants of the market of non-bank financial services to whom the group of public importance of participants of the market of non-bank financial services is not appropriated. Such participants do not join in the plan of conducting inspection checks by National Bank. The National Bank exercises permanent supervision and/or carries out unscheduled inspection inspections of these participants in the cases established by the legislation of Ukraine and regulatory legal acts of National Bank.

II. Criteria and procedure for evaluating risk degree. Public importance of the participant of the market of non-bank financial services

8. Criteria for evaluation of risk degree of the participant of the market of non-bank financial services are:

1) condition of corporate management, risk management and internal control;

2) activities indicators;

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