Lawyer
Expert in corporate and international corporate law. Has extensive experience in supporting the acquisition of financial licenses in Ukraine, as well as business incorporation in the EU, the United Kingdom, Switzerland, the UAE, and key Asian jurisdictions.
Regulatory Status Restoration before the National Securities and Stock Market Commission
In recent years, the National Securities and Stock Market Commission of Ukraine (NSSMC) has taken a stance for closely monitoring any potential proliferation of high-risk and fraudulent investment schemes on the Ukrainian investment market. As a result, the NSSMC implemented a preventive regulatory mechanism in the form of a publicly available list of suspicious investment projects (commonly referred to as the “blacklist”). This instrument serves as a soft-law enforcement tool aimed at investor protection, market transparency, and early detection of unlawful financial activities.
In this consultation, experts of the Law firm “Prikhodko and partners” explain the practical aspects of the NSSMC Blacklist, the consequences of inclusion, and the possible ways companies might use to protect themselves.
Legal Nature of the NSSMC Blacklist
From a legal perspective, the NSSMC blacklist does not constitute a formal sanction or administrative penalty. It is not a coercive measure under Ukrainian administrative or financial law. Rather, it functions as an informational instrument, aimed at warning investors and signaling potentially suspicious investment opportunities.
Legal Consequences of Inclusion
Despite its formally non-binding nature, inclusion in the blacklist produces substantial de facto legal and economic consequences. The publication of such information by a state regulator carries elements of public legal influence, impacting the legal standing and commercial viability of the listed entity.
Inclusion in the blacklist maintained by the NSSMC entails significant legal, reputational, and operational risks, including:
- loss of trust from counterparties, financial institutions, and investors;
- potential termination of contractual relationships and restrictions in banking services;
- increased scrutiny from regulators and law enforcement authorities (which may lead to inspections, website blocking, or legal proceedings);
- adverse cross-border implications, particularly in the context of AML/KYC procedures, complicating international operations and access to capital.
Grounds and Risk Factors for Inclusion
The NSSMC applies a set of criteria – so-called “13 signs of suspicious investment projects” – to assess projects. Among the most critical indicators are:
- absence of proper regulatory authorization;
- lack of verifiable corporate structure or ownership;
- a high guaranteed rate of return;
- aggressive marketing;
- lack of clear warnings about risks, including the possibility of losing invested funds.
Importantly, inclusion in the NSSMC`s blacklist may occur even in the absence of a final judicial determination of illegality or any comprehensive assessment of a project’s compliance with all 13 anti-criteria.
In practice, the mere presence – or even perceived resemblance – of at least one indicative suspicious sigh, as well as the NSSMC`s inability to verify potential non-compliance, is often sufficient to justify such inclusion.
How can “Prikhodko and partners” help?
Given the significant reputational, regulatory, and economic implications associated with inclusion in the NSSMC’s list of suspicious investment projects, our law firm provides comprehensive legal support aimed at both mitigating immediate risks and ensuring long-term regulatory compliance.
- Regulatory Engagement and Case Assessment
We represent clients in direct interaction with the NSSMC, including formal inquiries, clarification requests, and structured legal communication. Our team conducts an initial case assessment to determine the legal and factual grounds for inclusion, including identification of potential inaccuracies, incomplete data, or misinterpretations by the regulator.
- Preparation of Evidence-Based Legal Position
Our firm develops a substantiated legal position supported by a comprehensive evidentiary dossier. This includes analysis and structuring of licensing documentation, corporate governance records, contractual frameworks, and disclosure materials. We ensure that all documentation demonstrates full compliance with applicable Ukrainian legislation and regulatory requirements, thereby forming a robust basis for removal from the blacklist.
- Administrative and Judicial Protection
Where necessary, we provide full legal representation in administrative and judicial proceedings challenging the actions or omissions of the NSSMC. This includes preparation and filing of claims based on violations of business reputation, the illegality of the actions of a government entity, as well as the dissemination of inaccurate or misleading information. Our litigation strategy is aimed at both restoring the client’s legal standing and minimizing reputational damage.
- Development and Implementation of Compliance Frameworks
To address underlying regulatory risks, we design and implement tailored compliance systems, including AML/KYC procedures, internal policies, and disclosure standards aligned with both Ukrainian and international best practices. This not only strengthens the client’s legal position in the current matter but also reduces the likelihood of future regulatory scrutiny.
- Investment License Acquisition and Regulatory Structuring
In most situations, ensuring compliance with applicable regulatory standards is the best defensive strategy. For such cases, our law firm provides comprehensive, end-to-end legal support aimed at bringing their operations into full alignment with the requirements of Ukrainian capital markets regulation, including the obtaining of relevant investment-related licenses.
Our scope of services includes, inter alia:
- regulatory gap analysis of the business model;
- structuring corporate governance in line with licensing requirements;
- preparation of the complete licensing package (policies, procedures, documentation);
- legal support throughout the application process and interaction with the NSSMC;
- advisory on ongoing compliance and reporting obligations.
Through a combination of strategic advocacy, evidentiary rigor, and compliance-driven solutions, the law firm “Prykhodko & Partners” ensures effective protection of clients’ interests in one of the most sensitive areas of financial market regulation.
Calculate the cost of services
1 question
Has your company been included in the blacklist maintained by the National Securities and Stock Market Commission of Ukraine?
2 question
Does your company operate within the Ukrainian capital markets?
3 question
Have you previously attempted to resolve the issue of blacklist inclusion independently?
What does it mean if a company is included in the NSSMC blacklist?
Inclusion in the NSSMC blacklist indicates that the regulator considers the investment project potentially risky or suspicious. While it is not a formal legal sanction, it can trigger significant reputational and operational consequences for the business.
Can a company be removed from the NSSMC blacklist?
Yes, removal is possible. This typically requires a well-structured legal position, supporting evidence of lawful operations, and direct engagement with the regulator. In some cases, administrative or court proceedings may be necessary.
What are the key risks of being included in the NSSMC blacklist?
The main risks include loss of trust from banks and partners, difficulties with account opening or maintenance, increased regulatory scrutiny, and complications in international operations due to AML/KYC procedures.
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