THE DECISION OF STATE COMMISSION ON SECURITIES AND THE STOCK MARKET OF UKRAINE

of May 26, 2006 No. 345

About approval of the Procedure and conditions of licensing for implementation of separate types of professional activity in the stock market, renewals of the license, issue of the duplicate and the copy of the license

According to Civil and Economic codes of Ukraine, Articles 3, of 4, of 7, 8 Laws of Ukraine "About state regulation of the security market in Ukraine", Articles 16, of 17, of 19, 20 - 27 Laws of Ukraine "About securities and the stock market", the Laws of Ukraine "About economic societies", "About National depositary system and features of electronic security circulation in Ukraine", "About financial services and state regulation of the markets of financial services", "About the prevention and counteraction of legalization (washing) of income gained in the criminal way", "About state registration of legal entities and physical persons - entrepreneurs", "About banks and banking activity", taking into account Articles 13, 19 Laws of Ukraine "About licensing of certain types of economic activity", other regulatory legal acts State commission on securities and the stock market SOLVED:

1. Approve the Procedure and conditions of licensing for implementation of separate types of professional activity in the stock market, renewals of the license, issues of the duplicate and the copy of the license it (is applied).

2. Determine that the statement for licensing and the relevant documents on implementation of separate type of activity according to the securities trading - activities for management of securities (subitem 5.1.3 of subitem 5.1 of Item 5 of the Section I of the specified Procedure) are accepted by State commission on securities and the stock market to consideration in case of entry into force of the decision of State commission on securities and the stock market to which the requirements concerning accounting of securities and money of clients of the dealer in securities established in pursuance of part seven of article 17 of the Law of Ukraine "About securities and the stock market" affirm.

3. To professional participants of the stock market according to types of activity which they perform based on the license, till November 13, 2006 to bring the activities into accord with requirements of Item 16 of Chapter 1, of Item 7 of Chapter 2, of Item 5 of Chapter 3, of Item 9 of Chapter 5, of Item 7 of Chapter 7 of the Section III of the specified Procedure regarding requirements to length of service in the stock market of the head of the licensee.

4. To provide to the chief of staff of State commission on securities and the stock market M. Nepran:

submission on registration of this decision to the Ministry of Justice of Ukraine;

publication of this decision according to the legislation.

5. This decision becomes effective in the procedure established by the legislation.

6. Control over the implementation of this decision to assign to the Chief of staff of State commission on securities and the stock market M. Nepran.

Approved by the Decision of State commission on securities and the stock market of May 26, 2006, No. 345

Procedure and conditions of licensing for implementation of separate types of professional activity in the stock market, renewals of the license, issue of the duplicate and the copy of the license

This Procedure is developed according to Civil and Economic codes of Ukraine, Articles 3, of 4, of 7, 8 Laws of Ukraine "About state regulation of the security market in Ukraine", Articles 16, of 17, of 19, 20 - 27 Laws of Ukraine "About securities and the stock market", the Laws of Ukraine "About joint-stock companies", "About economic societies", "About National depositary system and features of electronic security circulation in Ukraine", "About financial services and state regulation of the markets of financial services", "About the prevention and counteraction of legalization (washing) of income gained in the criminal way", "About state registration of legal entities and physical persons - entrepreneurs", "About banks and banking activity", taking into account Articles 13, 19 Laws of Ukraine "About licensing of certain types of economic activity", other regulatory legal acts and determines qualification, the organizational and technical requirements necessary for receipt of the license for implementation of separate types of professional activity in the stock market, its renewals, issue of the duplicate of the license and the copy of the license.

Section I. General provisions

1. This Procedure establishes the procedure and conditions of licensing for implementation of separate types of professional activity in the stock market (except activities for asset management of institution investors (activities for asset management)), its renewals, issue of the duplicate and the copy of the license, the list of the documents enclosed to the application for licensing, its renewal, issue of the duplicate and the copy of the license, the refusal basis in its issue.

2. In this Procedure the following terms are used in such value:

the applicant - the legal entity who submits the application and the relevant documents for receipt of the license for separate types of professional activity in the stock market;

professional activity in the stock market - the activities of legal entities for provision of financial and other services in the field of placement and security circulation, accounting of the rights in securities, asset managements of institution investors conforming to the requirements established to such activities by the legislation;

professional participants of the stock market - legal entities who based on the license granted by State commission on securities and the stock market (further - the Commission), perform professional activity in the stock market;

the licensee - the professional participant of the stock market which has the corresponding license granted by the Commission;

equity - result according to the Section I of liability of balance of the applicant (licensee) in form according to appendix to the Provision (standard) of the financial accounting 2 "Balance" approved by the order of the Ministry of Finance of Ukraine of 31.03.99 No. 87, registered in the Ministry of Justice of Ukraine 21.06.99 for No. 396/3689 (with changes) (further the Provision (standard) of the financial accounting 2 "Balance") or result according to the Section I of liability of balance in No. form the 1st according to appendix to the Provision (standard) of financial accounting 25 "The financial statement of small business entity" approved by the order of the Ministry of Finance of Ukraine, of 25.02.2000 No. 39, registered in the Ministry of Justice of Ukraine 15.03.2000 for No. 161/4382 (with changes);

the owner of the applicant (licensee) - the legal entity or physical person owning share in the authorized capital of the applicant (licensee);

the license - the document of the established sample certifying the right of the licensee to implementation of separate types of professional activity in the stock market;

the location of the legal entity - the address of body or person who according to constituent documents of the legal entity or the law act from his name (further - executive body);

the separate division of the licensee - branch, other division of the legal entity who is outside its location and performs everything or part of its functions on implementation of professional activity in the stock market;

the room - the part of unobstructed capacity of the building limited to construction elements with possibility of entrance and exit which is used by the licensee when implementing professional activity in the stock market;

the certified specialist - the worker of the legal entity who performs separate type of professional activity and conforms to the qualification requirements established by the Commission (has the qualification certificate of the established sample), and received the appropriate certificate (during the period before introduction of certificates by the Commission availability of the qualification certificate of the established sample, including the qualification certificate of the specialist in questions of financial accounting of professional participants of the stock market is considered);

length of service in the stock market - general length of service of the certified specialist at the licensee in any kind of professional activity in the stock market and/or length of service as the leading official in the Commission or in self-regulatory organization in the security market, acquired the corresponding status in the procedure established by the legislation;

the licensed register - the list of subjects of managing of licensees which is created and kept by body of licensing according to the license received by licensees as the automated system of collection, accumulating, protection and accounting of information about these subjects according to the procedure, established by the legislation, on this matter;

the stock market (security market) - set of stock market participants and legal relationship between them concerning placement, the address and accounting of securities and derivative (derivatives);

specialized structural divisions litsenziatadepartament, management, department, the sector and so forth which are integral part of internal organizational structure of the licensee or its separate division and have other location, than the licensee or its separate division.

3. The applicant (licensee) (except bank) for implementation of professional activity in the stock market shall have in property or in use the non-residential premise which is completely isolated from rooms of other legal entities on the location specified in the Unified State Register of Legal Entities and
physical persons - entrepreneurs (license). For implementation of activities by separate division of the licensee based on the corresponding copy of the license or specialized structural division of the licensee which is integral part of its internal organizational structure and has other location, the licensee shall have in property or in use the non-residential premise on the location of such division which shall meet the requirements concerning the room of the licensee established for the corresponding type of activity.

The room is considered completely isolated if it is not used by other persons, and it is confirmed by the documents of provision provided in connection therewith Rather.

The applicant (licensee) (except bank) who intends to perform activities for the securities trading, shall have in property or in use non-residential rooms the area at least than 20 sq.m (except case of implementation only of dealer activities when the room can be at least 10 sq.m).

The applicant (licensee) (except bank) who intends to combine activities for the securities trading with depository activity of the keeper of securities, shall have in property or in use the non-residential premise consisting of certain rooms with a total area at least 35 sq.m.

The applicant (licensee) (except bank) who intends to combine the specified types of activity with activities for maintaining the register of owners of personalized securities, shall have in property or in use the non-residential premise consisting of certain rooms with a total area at least 55 sq.m.

The applicant (licensee) (except bank and the issuer performing activities for maintaining own register of personalized securities) who intends to perform activities for maintaining the register of owners of personalized securities, shall have in property or in use the non-residential premise consisting of certain rooms with a total area at least 30 sq.m.

The applicant (licensee) (except bank) who intends to combine activities for maintaining the register of owners of personalized securities with depository activity of the keeper of securities, shall have in property or in use the non-residential premise consisting of certain rooms with a total area at least 50 sq.m.

The applicant (licensee) who intends to perform depository activity of securities depository shall have in property or in use non-residential rooms with a total area at least 400 sq.m.

The applicant (licensee) who intends to perform activities for the organization of stock market trading shall have in property or in use non-residential rooms total area at least than 100 sq.m.

4. Licensing of professional activity in the stock market is performed by the Commission.

The paragraph two is excluded according to the Decision of State commission on securities and the stock market of Ukraine of 08.11.2011 No. 1610

5. The commission in the procedure established by it grants licenses for the following types of professional activity in the stock market:

5.1. The activities for the securities trading including:

5.1.1 dealer activities;

5.1.2 broker activities;

5.1.3 activities for management of securities;

5.1.4 underwriting.

5.2. The depository activity including such types of activity:

5.2.1 depository activity of the keeper of securities;

5.2.2 depository activity of securities depository;

5.2.3 settlement and clearing activities;

5.2.4 activities for maintaining the register of owners of personalized securities.

5.3. Activities for the organization of stock market trading.

6. Activities for the securities trading can combine with depository activity of the keeper of securities.

Depository activity of the keeper of securities can combine with activities for maintaining the register of owners of personalized securities or with banking activity.

Depository activity of securities depository can combine with settlement and clearing activities and activities for maintaining the register of owners of personalized securities.

Activities for maintaining the register of owners of personalized securities are exclusive type of activity which can be combined with activities of the keeper of securities and activities for the securities trading.

Combination of separate types of professional activity in the stock market is not allowed, except the cases provided by the Law of Ukraine "About securities and the stock market" and other acts of the legislation regulating procedure of separate types of professional activity in the stock market.

7. The license is obtained on implementation of separate types of professional activity in the stock market in connection therewith Rather.

8. The professional participant of the stock market has the right to carry out these activities in all territory of Ukraine after issue of the corresponding license by the Commission on condition of the accession to self-regulatory organization of professional participants of the stock market by the corresponding type of professional activity (except for stock exchange and depositary) and introduction in the procedure for record about inclusion in the state register of financial institutions established by the Commission which provide financial services in the security market.

9. Effective period of the license is established by the Cabinet of Ministers of Ukraine on representation to the Commission, but there cannot be less than three years.

10. The license (the copy of the license) is valid before expiration of the license (in the presence of the corresponding term in the form of the license), recognitions of the invalid license or entry into force of the decision on cancellation of the license.

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