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of December 27, 2024 No. 185
About approval of the Regulations on requirements to corporate management system and internal control systems of finance company and Changes in some regulatory legal acts of the National Bank of Ukraine
According to Articles 7, of 15, 55-1, 56 of the Law of Ukraine "About the National Bank of Ukraine", Articles 14, of 18, of 21, of 24, of 41, 44 Laws of Ukraine "About financial services and finance companies", article 28 of the Law of Ukraine "About insurance", article 25 of the Law of Ukraine "About credit unions", for the purpose of establishment of requirements to corporate management system and internal control system of finance companies, state regulation and supervision of which activities is exercised by the National Bank of Ukraine, and reduction of some regulatory legal acts of the National Bank of Ukraine in compliance with requirements of the legislation of Ukraine the board of the National Bank of Ukraine decides:
1. Approve Regulations on requirements to corporate management system and internal control system of finance company (further – the Provision) which are applied.
2. Approve Changes in:
1) Regulations on regulation of activities of the finance companies having the right to perform activities for provision of guarantees, the Board of the National Bank of Ukraine approved by the resolution of December 27, 2023 No. 191, which are applied;
2) Regulations on requirements to management system of the insurer approved by the resolution of Board of the National Bank of Ukraine of December 27, 2023 No. 194 (with the enclosed changes);
3) Regulations on requirements to management system credit union, the Board of the National Bank of Ukraine approved by the resolution of February 02, 2024 No. 15 (with the enclosed changes).
3. To finance companies to bring the activities into accord with requirements of provision till April 30, 2025.
4. To department of methodology of regulation of activities of non-bank financial institutions (Sergey Savchuk) to inform finance companies, insurers, credit unions information on adoption of this resolution.
5. The resolution becomes effective since January 1, 2025.
Chairman
Andrey Pyshny
Approved by the Resolution of Board of the National Bank of Ukraine of December 27, 2024 No. 185
1. This Provision is developed according to the laws of Ukraine "About the National Bank of Ukraine", "About financial services and finance companies" (further – the Financial services act), for the purpose of ensuring financial stability of the finance companies having the right to perform activities for provision one or several of the following types of financial services: provision of means and bank metals on credit, financial leasing, factoring, provision of guarantees (further – finance company).
2. This Provision establishes requirements to corporate management system and internal control system of finance company.
3. Terms in this Provision are used in such value:
1) business process set of the interconnected or interdependent types of activity directed to creation of certain product or service;
2) the currency risk risk connected with sensitivity of asset cost and obligations of finance company to change of level or rate fluctuation of currencies;
3) executive body of the financial company - joint or sole executive body of finance company;
4) measurement (assessment) of risks processes of comparison of analysis results of risks with the level of risk exposure and acceptable risk level established in documents on planning of activities and/or in documents/documents on the organization of internal control system for the purpose of decision making on application of risk management methods;
5) responsible body of the financial company - the supervisory board of finance company (in the presence), general meeting of participants (shareholders) of finance company;
6) the responsible employee-worker of finance company to whom accomplishment of separate functions within ensuring functioning of internal control system is assigned;
7) the internal documents documents approved by governing body of finance company within its competence including policy on separate activities, provisions, instructions, techniques, rules, strategy, orders, decisions, orders or documents developed in other form taking into account requirements of the legislation of Ukraine;
8) the declaration of tendency to risks - the internal document determining cumulative size risk appetite, types of risks which the finance company will accept or avoid for the purpose of achievement of the purposes, and level risk appetite concerning each of such risks (individual level);
9) documents on planning of activities plan of activities or the documents containing the general description of vision of the beginning, the organization and further business development of finance company;
10) the admissible level of risk - the maximum size of risk which the finance company is able to accept by all types of risks considering capability adequately and to manage effectively risks, and also taking into account the restrictions set by the legislation of Ukraine;
11) key persons persons, actionees of key functions in finance company and which perform key functions in finance company:
the internal auditor / the main internal auditor (the staff employee to whom function of carrying out internal audit, or the head of the structural unit, internal audit, responsible for carrying out is assigned);
the chief komplayens-manager [the head of the structural unit on control of observance of regulations (komplayens) or person to who function of such division is assigned];
the chief risk manager (the division manager on risk management or person to who function of such division is assigned);
12) komplayens-risk-risk of emergence of losses and/or sanctions, additional losses or short-reception of the planned income or loss of reputation owing to discrepancy of activities of finance company to requirements of the legislation of Ukraine and/or to other requirements (rules, standards, the principles) for implementation of such activities to which shall adhere or made the decision to adhere finance company, rules of fair competition, the code of behavior (ethics), to conflict prevention of interests, and also internal documents of the financial company / intra group documents of finance company;
13) credit risk probability of emergence of losses or additional losses or short-reception of the planned income owing to failure to carry out by the debtor/partner of the undertaken obligations in accordance with the terms of the agreement;
14) culture of management of risks observances of the principles determined by finance company, rules, regulations of finance company directed to informing all employees of finance company on acceptance of risks and risk management;
15) risk restriction limit, established by finance company for control of the size of risks on which the finance company in the activities faces;
16) monitoring of risk process of systematic supervision of risks, of system and process of control and risk management for the purpose of identification of variations from their acceptable level and/or effective management of risks;
17) operational risk probability of emergence of losses or additional losses or short-reception of the planned income owing to shortcomings or mistakes of the organization of internal processes, intentional or inadvertent actions of employees of finance company or other persons, failures in work of systems of finance company or owing to influence of external negative factors;
18) management of the financial company - responsible body of finance company and/or executive body of finance company;
19) transfer of risk transfer by finance company of the responsibility for risk to the third parties for remuneration with preserving the available risk level;
20) division the control division/person performing objective and independent assessment of activities of finance company, providing reliability of the reporting [division on risk management (person to who function of such division is assigned), division on control of observance of regulations (komplayens) (person to who function of such division is assigned), the internal auditor / the main internal auditor (the staff employee to whom function of carrying out internal audit, or the head of the structural unit, internal audit, responsible for carrying out is assigned)];
21) risk probability of emergence of losses or additional losses, either short-receptions of the income, or failure to carry out of contractual commitments by the party owing to influence of negative internal and external factors;
22) risk-appetite-cumulative size by all types of risks and separately on each of the risks determined in advance and within admissible risk level concerning which there is decision on feasibility/need of their content for the purpose of accomplishment of the purposes established by documents on planning of activities of finance company;
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