Regulation of pension savings and supervision of the activities of non-state pension funds: application of international standards for the development of Ukrainian legislation

  • N. V. Martynenko  Doctor of Philosophy in Public Administration, researcher at the Department of International Cooperation and Work with Foreigners of the National Scientific Center «Hon. Prof. M. S. Bocarius Forensic Science Institute» http://orcid.org/0000-0002-3234-0689
Keywords: international standards, pension savings, financial market, risk-based approach, funded pension provision, non-state pension funds.

Abstract

The purpose of the article is to study international standards for the regulation of pension savings and supervision over the activities of non-state pension funds in order to develop proposals for Ukraine.

The scientific novelty is determined by the proposals provided for the development of effective legislation in the field of regulation of pension savings and supervision of the activities of non-state pension funds, taking into account the international legal standards enshrined in the document The IOPS Princip Supervision. Despite its formal non-mandatory nature, given its importance in the global market regulation system, this act should be implemented in the national legal system.

Research methodology. In the process of preparing the article, the following methods were used: analysis, comparison and generalization of research results.

Conclusions. It is necessary to introduce European rules to regulate pension savings and supervise the activities of non-state pension funds. According to the results of the study, it was proposed to pay attention to the name of the regulator, which should correspond to the sphere of public administration; determine at the legislative level the goals and principles of activity, guarantees for the exercise of the powers of the National Securities and Stock Market Commission; improve the tasks and powers of the NSSMC for supervision over the subjects of the funded pension provision system; designate at the legislative level the scientific, methodological and information support of the NSSMC; consider the possibility of legislative consolidation of the basic principles and procedure for exposing violations and conducting investigations by officials of the NSSMC in the presence of a reasonable suspicion of violations of the legislation on the system of funded pension provision committed by individuals or legal entities; introduce protection of personal and property rights of employees; detail at the legislative level the features of financing and logistics of the regulator.

When developing legislative acts to strengthen the regulatory capacity of the NSSMC in order to avoid the emergence of corruption risks, it should be taken into account that the expansion of the discretionary powers of the NSSMC should not create conditions for the emergence of a conflict of interest and opportunities for abuse of the powers granted to it. It is necessary to detail the relations of the NSSMC with the Verkhovna Rada of Ukraine, the Cabinet of Ministers of Ukraine, local governments, the media and public organizations.

There is an urgent need to improve the legislative norms on international cooperation of the NSSMC and fix at the legislative level the procedure for exchanging information containing banking secrecy and personal data, as well as ensuring the preservation of information received in the framework of international cooperation.

Increasing the institutional capacity of the market regulator in accordance with international standards will lead to effective protection of participants in the pension system and prevention of abuse of investors' money. Taking into account the shortcomings and filling in the gaps in the existing system of supervision is a very important element of the pension reform, because we are talking about the funds and the trust of millions of citizens.

References

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Published
2022-07-29
How to Cite
Martynenko  , N. (2022). Regulation of pension savings and supervision of the activities of non-state pension funds: application of international standards for the development of Ukrainian legislation . Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine, (3), 74-87. https://doi.org/10.32886/instzak.2022.03.07