Last week, a meeting was held between representatives of the NBU and representatives of the non-banking sector. This event was dedicated to the acquaintance and discussion of the White Paper – a project on the future regulation of the non-banking sector. The project was first presented on October 22, and its public discussion will end on November 22.

In general, during the first meeting, the participants were concerned about the following issues:

  1. Will everyone be able to survive the new capital requirements? And the Solvency II directive?
    First, the NBU will develop a time frame for the transition of insurance companies to new conditions after studying the real cases in the market and opportunities to meet the new requirements.
    Secondly, the Solvency II Directive provides for the possibility of implementing a proportional settlement, which allows regional and medium-sized insurance companies to operate in a simplified mode. Such actions can be introduced in stages, taking into account the characteristics of the market and the activities of organizations.
  2. When the NBU becomes a regulator – will there be re-licensing of companies?
    This will not happen.
  3. When issuing new licenses, will the company’s business plan be evaluated?
    A representative of the NBU said that as part of the innovation in the issuance of licenses will be evaluated their business plan. This measure increases the responsibility of managers and provides an opportunity to assess the strength of a new player in the market.
  4. The White Paper does not have a mechanism for withdrawing companies from the market and transferring their portfolio. How will this issue be regulated?
    Currently, the White Paper does not cover the full range of necessary regulatory activities, but in the future the NBU plans to close these issues by issuing additional white papers that will cover all issues.
  5. Will the new requirements for credit unions really include a clause on a minimum capital of 5 million euros?
    According to Directive 2013/36 / EU – the minimum amount of capital should be 5 million euros, but credit unions will have a special status and can provide services to their members without complying with capital requirements.

The NBU emphasizes that currently only a draft white paper is being considered, which will be finalized, including through discussions during meetings with market representatives.