Began operating a law on compensation to individuals for damage caused abuse in financial services
On November 18 it was officially published, and on November 19 the Law of Ukraine came into force “About introduction of amendments to some laws of Ukraine concerning compensation to physical persons, through system of guaranteeing household deposits, the harm done by abuses in the sphere of banking and other financial services”, in consequence of that in some way were changed the “rules of the game” in the field of guaranteeing deposits of individuals.
The main innovation is equating with a contribution of loans and household deposits in the non-bank financial institutions performed through bank which acted as the attorney under the relevant agreement and and on the date of entry into force of the Law it is recognized as insolvent. An obligatory condition for the acceptance of such funds contribution and the physical persons which performed their placement / provision – investors, is lack of the written prevention of the bank signed by the investor that the guarantees provided by the law on system of guaranteeing household deposits don’t extend to these means.
In practice, this means that investors who have placed their funds in non-banking financial institution, an attorney who was now insolvent bank, the State guarantees the payment and reimbursement of these funds within 200,000 USD. by fund of guaranteeing deposits of physical persons (further in the text – Fund). At the same time to start paying these compensations should Foundation no later than 20 working days from the date of entry into force of the law (that is, no later than December 19 – under the pillow of St. Nicholas).
Another innovation was the ability of the Fund or its official in case of insufficiency of property of bank to address with the property requirement to:
- a person connected with the bank, whose actions / omissions involved the infliction of creditors and / or damage to the bank and / or led to it obtaining property benefit;
- non-bank financial institution, which attracted funds from individuals, equivalent to the contributions.
In case of default of such property claims the Fund appeals with them to court, and then the court in order to ensure the claim seize on the money and property of persons, to which requirements are declared. Collected funds thus included in the bank’s liquidation mass.
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