№ 10/2017

Fìnansi Ukr. 2017 (10): 110–126https://doi.org/10.33763/finukr2017.10.110

MARKET OF FINANCIAL SERVICES

TERESHCHENKO Hanna ¹, KLYMENKO Kateryna ²

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

Compensation mechanisms for the protection of investors: foreign experience and Ukrainian realities

The financial market of Ukraine in the current realities of its development requires an immediate reform by introducing effective mechanisms for protecting the rights of investors – consumers of financial services and forming a competitive national financial market by eliminating speculative and manipulative schemes on it. The article addresses the issues of protection of investors' rights, in particular the introduction of compensatory mechanisms. The purpose of the article is to justify the necessity of developing a compensation mechanism for the protection of investors' interests in Ukraine based on the introduction of an investment guarantee fund, which is an indispensable attribute of a developed financial market and improves the investment climate, while the actual investment process becomes more comfortable and safe for all subjects of market relations. Taking the position that the introduction of compensation schemes in Ukraine in attracting funds from investors is one of the prerequisites for bringing the legislation of Ukraine in line with the requirements of EU legislation, the article examines the foreign experience of applying compensation schemes to protect investors’ interests. The article identifies peculiarities of the introduction of compensatory mechanisms of the stock market functioning on the basis of the investment guarantee fund aimed to protect investors from the risk of loss of their financial assets invested and participants of such a fund from the shortfall in the planned amount of financial resources and premature withdrawal by the owners entrusted with the capital management. Based on the empirical and other methods of scientific knowledge, conclusions are drawn regarding the main problems and prospects of introducing compensatory mechanisms for the protection of investors. Possible ways of improving compensation schemes for protecting the interests of investors and developing their legislative regulation are outlined. The scientific and practical value of the research findings is to determine the primary areas for improving the effectiveness of the mechanism for protecting the interests of investors, which will have a powerful stimulating effect on the Ukrainian financial market and contribute to improving the investment image of Ukraine.

Keywords:investors, property rights, сompensation schemes, investment companies, financial instruments, investment guarantee fund

JEL: E20, G22, G24

Tereshchenko H. . Compensation mechanisms for the protection of investors: foreign experience and Ukrainian realities / H. . Tereshchenko, K. Klymenko // Фінанси України. - 2017. - № 10. - C. 110-126.

Article original in Ukrainian (pp. 110 - 126)

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