DRAFT

More grounds for review of judicial decisions

The Draft Act On Changes to Certain Acts to Expand the Grounds to Review Judicial Decisions in Criminal Proceedings of the Higher Specialized Court of Ukraine in Civil and Criminal Cases and/or the Supreme Court of Ukraine of 11 February 2015, No.2107 has been submitted by a group of Ukrainian MPs.

The main objective of the Draft is to establish a mechanism to ensure judicial review of  criminal cases where human rights and fundamental freedoms were violated resulting from violation of substantive or procedural law. The Draft introduces a mechanism providing a right to the Commissioner for Human Rights of the Verkhovna Rada of Ukraine to file appropriate petitions with the Higher Specialized Court of Ukraine in Civil and Criminal Cases or the Supreme Court of Ukraine requesting revision of verdicts in criminal proceedings and enforcement orders of medical nature after cassation review of the cases in events and in the manner established by legislation. The Draft defines the requirements of appeals to the Commissioner requesting review of court judgments and the mannner such appeals are considered by the Commissioner.

New Draft Act on Insurance

The Draft Act On Insurance of 6 February 2015, No.1797-1 has been submitted by a group of Ukrainian MPs. The Draft incorporates the main guidelines of the Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the Taking-up and Pursuit of the Business of Insurance and Reinsurance (Solvency II).

The Draft permits cross-border insurance of risks related to maritime shipping, commercial aviation, missile launching and freight (including satellites), if the object of insurance is the property interest related to the goods that are transported, and/or a vehicle used for transportation of the goods, and/or any liability that may arise from such transportation.

An insurer shall regularly provide to the authorized agency its information about the list of affiliated persons for the purposes of prudential supervision of the insurer by the authorized agency.

Branches of non-resident insurers need to obtain a license to conduct insurance business in Ukraine. The main difference is that the authorized agency is able to promptly receive information on the financial condition of a non-resident insurer, which is located outside Ukraine, and to cooperate with foreign regulators. One of the conditions for non-resident insurers to conduct their business is signing a memorandum of understanding with foreign regulators.

A concept of substantial interest has been introduced. The Draft introduces corporate governance requirements for insurers, general and specific requirements for insurance brokers and insurance agencies that incorporate international principles and standards. It also incorporates proposals made by EU legislation about brokers and insurance agencies having two separate accounts for their own organizational and economic activity and for insurance premiums and payments, as well as the obligation of insurance brokers or agencies to insure their professional liability for at least UAH 5 million in respect of each insured event.

The Draft obliges insurers to order annual audits by external auditors. The Draft sets the requirement to inform the authorized agency in the event an external auditor has reasons to believe that the insurer’s financial condition worsened, the internal audit system is not proper or there are other violations of legislation on insurance.

Mandatory publication of AMCU decisions

The Draft Act On Changes to Certain Legislative Acts of Ukraine to Ensure Transparency of the Antimonopoly Committee of Ukraine of 11 February 2015, No.2102 has been submitted by a group of MPs. The Draft provides that the offices of the AMCU should publish their decisions following their review of applications and cases on concentration and coordinated actions, on violation of legislation on protection of economic competition and unfair competition on the official website of the Antimonopoly Committee of Ukraine within 30 days of such decision, except for information that could cause harm to participants and third parties if published.

Comments

Victoria Prashnyk,  member of Parliament

At the moment the decisions adopted by the Antimonopoly Committee of Ukraine are not publicly available, which is contrary to the practices of competition authorities worldwide. According to the EU – Ukraine Association Agreement, Ukraine has put itself under the obligation, inter alia, to bring its antitrust legislation into compliance with EU law, including implementation of the rules on competition laid down in Article 30 of Council Regulation (EC) No.1/2003 of 16 December 2002 and Article 20 of Council Regulation (EC) No.139/2004 as regards publication of all decisions of its competition authority. The respective provisions are also reflected in subsection 2.1.1 of Chapter XI of the Coalition agreement.

Draft Act No.2102, which we prepared, is aimed at realizing the above provisions. We have discussed it within the legal community and business associations received very positive feedback from our colleagues at the Ukrainian Bar Association as well as American Chamber of Commerce in Ukraine. But even more importantly, the Draft was approved in overall terms by experts of European Commission, which gives me hope that this law will be passed.