№ 2/2017

Fìnansi Ukr. 2017 (2): 27–42https://doi.org/10.33763/finukr2017.02.027

MARKET OF FINANCIAL SERVICES

KLYMENKO Kateryna ¹, TERESHCHENKO Hanna ²

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0001-8295-1333
²SSI “Institute of Educatinal Analytics”
OrcID ID : https://orcid.org/0000-0002-9458-2843

Self funding securities regulators: foreign practice and Ukrainian realities

The article is devoted to the issue of finding an optimal financing model of state securities regulators, to foreign practice in self government regulators of securities markets and its possible adaptation in Ukraine. The conclusion is that in Europe there is a tendency to self regulation of securities markets. Of the 24 European bodies on regulation of securities market only Austria and Norway finance regulators exclusively from the state budget. The urgent problems of finding sources in terms of recent legislative changes on the recommendations of international financial organizations, represented by the IMF are considered. It is concluded that the level of operational independence of the National Commission on Securities and Stock Market, according to IMF experts, does not correspond to the level that is expected of an independent regulatory body. The most significant are the restrictions imposed on inspection activities to the SSMNC. A moratorium on inspections, restrictions on the frequency and duration of inspections and requirement to harmonize certain checks with other public authority are contrary to the standards established by IOSCO. We consider two alternative models of self-financing national securities regulators and the estimation of the consequences of legislative innovations for the stock market and the economy as a whole in the event of their introduction. It is noted that the implementation of recommendations provided by the IMF, the implementation of legislation and regulations will strengthen SSMNC and increase its institutional and financial independence for the effective supervision of the securities market. In fact, it is a precondition for the full financial market regulation in line with international standards.

Keywords:financial market, securities market, stock market, State Regulation of Securities, finance regulators

JEL: E44, G15, G18

Klymenko K. . Self funding securities regulators: foreign practice and Ukrainian realities / K. Klymenko, H. . Tereshchenko // Фінанси України. - 2017. - № 2. - C. 27-42.

Article original in Ukrainian (pp. 27 - 42)

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