Professional Association of Registrars and Depositories
Depository alternatives in Ukraine
Professional Association of Registrars and Depositories / Key word(s): Legal Matter/Corporate Action Professional Association of Registrars and Depositories PRESS-RELEASE 1/12/2011 Kyiv, Ukraine Depository alternatives in Ukraine On November 29, 2011, self-regulatory organization on Ukrainian stock market PARD and People’s Deputy of Ukraine, former Minister of Economy Serhiy Terekhin held a joint press conference of ‘Market vs. Government: the future of the depository system’ at press center LIGABusinessInform. Head of self-regulatory organization PARD presented the alternative draft law on the depository to the one, which was developed by Cabinet of Ukraine. Participants of the event drew attention to the threats of the bill proposed by the Ukrainian government, and explained their vision of further development of the depository system in Ukraine. On November 23, 2011 PARD released an official statement, which criticized the draft law ‘On the system of depository account securities» (â„– 9428). The statement proclaimed that enactment of bill proposed by Cabinet will impinge on the ownership rights of securities, monopolization of depository market, high concentrations of risk with potential local and systemic crises in Ukrainian financial system. The head of the Board of PARD Vladimir Scherban, ‘an official statement of the Professional Association of Registrars and Depositories arose primarily as a reaction to the threat of custodians extinction due to the introduction of the bill’s norms made by the Cabinet of Ministers.’ Indeed, recently, according to Mr. Shcherban, registrars were virtually destroyed the same way with the adoption of the Law of Ukraine ‘On securities and stock market.’ ‘This spring, when trying to create a central depository in Ukraine, it was perceived as a place of possible access to insider information or a place to earn money, – comments former Minister of Economy, Serhiy Teryokhin. – The bill of Cabinet of Ministers also aims to make hidden money from central depository. While ideally Depository should be library and calculator. We are more satisfied with the bill of PARD, where the central depository retains its inherent features’. Alex Kyi, president of PARD, calls the key elements of alternative bill, developed by the market. First of all it is ‘creation of a central depository as a nonprofit entity which better suits his purpose, as tha technological center of custody market and establishes its unique status.’ In addition, Mr. Kyi says that the bill proposed by the market, allows ‘expanding the range of custodian services in accordance with international standards, as well as preserving the integrity of the depository system by maintaining the clearing function of the depositary’. About PARD: PARD (Professional Association of Registrars and Depositories) is the only professional association in the depository activities market in Ukraine. The association, which was founded in 1996, represents the interests of 602 members. PARD is one of the oldest and most numerous self-regulatory organizations in Ukrainian stock market. This association includes the Legal Committee, the Depository Committee and the Committee on Protection of Personal Information. In addition, PARD manages ‘The Financial Monitoring’ project, creates rating of professional market participants, provides arbitration and works on development of laws and regulations. For further information, please contact Olga Tsilyk: 38(093)768 80 83, o.tsilyk@pard.ua End of Corporate News 01.12.2011 Dissemination of a Corporate News, transmitted by EquityStory.RS, LLC – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. EquityStory.RS, LLC’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
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