New approaches to the implementation of supervisory powers in capital markets and organized commodity markets

The article analyzes new mechanisms and measures of influence on supervisory entities in capital markets and organized commodity markets. A general positive assessment is given to the innovations related to the introduction of more flexible tools for adjusting the state of stock and organized commodity markets, as well as the expansion of the powers of the National Securities and Stock Market Commission (NSSMC), while simultaneously strengthening the legal guarantees of the rights of supervised entities. Attention is paid to changes regarding the inclusion of individuals as subjects of responsibility under this law, clearer delineation of the scope of supervised entities, and significant expansion of the rights of supervised entities by utilizing the best practices of regulating procedural relations between the supervisory body and the supervised entity. The article also explores the deepening regulation of communicative connections between these entities and the procedures for implementing supervisory measures. Attention is given to preventive measures for violations, such as «recommendations by inspectors» and «requests for the adoption of measures.» The article analyzes new forms of implementing supervisory powers and measures of influence on supervised entities, as well as new mechanisms for their implementation that were not previously known in domestic practice. The legal significance of «public warnings» is highlighted, and a legal evaluation of «settlement agreements regarding the consequences of violating sectoral legislation» is provided as an alternative to administrative enforcement measures. According to the authors, concluding such an agreement cannot be considered as a discretionary power of the NSSMC but rather a right of the supervised entity. Conclusions are made regarding the compliance of the introduction of «controlled services» with the IOSCO principle. Taking into account the guarantees of the rights of supervised entities, as stipulated in Article 35 of the Law of Ukraine «On Amendments to the Law of Ukraine ‘On State Regulation of Capital Markets and Organized Commodity Markets’ and Some Other Legislative Acts of Ukraine on Improving State Regulation and Supervision in Capital Markets and Organized Commodity Markets» of February 22, 2024, No. 3585-IX (hereinafter referred to as Law No. 3585-IX). The article defines the functional purpose of legislative restrictions on financial sanctions against supervised entities - legal entities, which, in the authors’ view, aim to prevent their economic destruction and the disruption of economic ties in the respective market. In conclusion, the changes introduced as a result of the adoption of Law No. 3585-IX are expected to positively impact the relationship between the regulator and market participants. The innovations in the practice of legal regulation of relations between the regulator and supervised entities deserve to be extended to other similar areas of state control and supervision.