An NBU's regulation came into force on 8 May 2019, which enables any local or foreign company (a candidate) to test its innovative financial product and/or service (solution) in the Ukrainian regulatory environment. The NBU will accept applications for testing both launched solutions as well as solutions in the development stage.
A candidate's solution must meet a number of eligibility criteria, which broadly may be divided into product and regulatory requirements. On the product side, a solution should be unique or significantly improve available solutions, should improve user experience, remove friction and facilitate development of the financial market and a candidate should have a clear implementation plan. On the regulatory side – launching the solution should not violate Ukrainian law, including competition legislation. If its use entails risks, a candidate should have a risk management system in place.
To process an application, the NBU may engage a number of other competent Ukrainian authorities, trade associations and experts. Moreover, the NBU can approach the Ukrainian Government with a recommendation to amend legislation if it prevents the launch of a truly innovative solution.
This initiative implements one of the action items envisaged by the NBU Complex Program of the Financial Sector Development adopted back in 2015. This pilot program will last until the end of 2019.
This LEGAL ALERT is issued to inform Baker McKenzie clients and other interested parties of legal developments that may affect or otherwise be of interest to them. The comments above do not constitute legal or other advice and should not be regarded as a substitute for specific advice in individual cases.