Danylo Hetmantsev, chairman of the parliamentary Committee on Finance, Tax and Customs Policy, said that the Verkhovna Rada has approved draft law No.16137 “On investment funds” in the first reading. “Thank you to colleagues for their support; next up is preparation for the second reading,” Danylo Hetmantsev said.
The draft envisages a transition of the collective investment market to the European model and a comprehensive overhaul of regulation. The current system of unit and corporate investment funds is proposed to be replaced by public (UCITS — Undertakings for Collective Investment in Transferable Securities) and alternative (AIF — Alternative Investment Funds) investment fund models.
New fund structure and classification
The bill establishes a new classification: investment funds will be divided according to several criteria. Funds may be established either with the status of a legal entity or without it.
Replacing existing fund types with UCITS and AIF is intended to standardise approaches to collective investment in line with European standards.
Licences, asset custody and effective date
For asset management companies (AMCs) three types of licences are envisaged: a licence to manage public funds, and full and basic licences to manage alternative funds. Asset custody will be carried out by custodial institutions, which will also monitor whether operations comply with the fund’s rules of activity.
According to the draft law’s wording, the new law is to come into force on 1 January 2028; transitional periods are provided for existing corporate and unit funds, with separate adaptation deadlines up to 2041. Financial sanctions will be introduced gradually: in 2028 — with a coefficient of 0.1 and subsequent annual increases; the full level of sanctions is planned to be implemented from 1 January 2037.
