UCRFIN Regulatory Entity (Ukrainian centre for the development of OTC financial instruments and technologies) is a non-profit organisation that works to bring together enterprises that provide forex market services in Ukraine.
UCRFIN Goal is to unite the company’s efforts to promote the effective growth of the forex market in Ukraine, including the market’s legal framework and technological foundation.
UCRFIN also implements common standards and market ethics for the Forex brokerages and supervises the association members and other market participants to assist their customers in promoting and safeguarding their legal rights and interests before government agency consultative groups and business organisations.
UCRFIN history
UCRFIN Regulatory Entity (Ukrainian centre for the development of OTC financial instruments and technologies) was established in August 2013 by leading global companies that help to give training services in Ukraine in the forex market, CFD on stocks, indices, futures, spot metals, commodities and others to help coordinate their practices in the market development and improve their legal framework.
UCRFIN functions
UCRFIN Regulatory Entity (Ukrainian centre for developing OTC financial instruments and technologies) is a non-commercial organisation consisting of business firms to complete tasks and goals by its member companies while keeping in mind the competition and other applicable Ukrainian legislation.
These functions include:
- The development, enforcement and supervision of the use of common standards, rules and regulations, and good performance by legal entities and private businesses providing services for working with OTC on the forex market and other markets.
- Making forex business is very important and a full member of the Ukrainian financial sector.
- Promoting and simplifying the forex business in Ukraine with the help of data, education, simple explanations etc.
- Taking action against the distribution of fraud scheming that might harm the forex reputation.
- Improving proposal and teamwork with public authorities on the development and the changing of the legislative framework of Forex.
- Supporting the association member’s company e reputation and protecting their legal rights and interest before and a public body and business firm.
- Association member companies’ actions on the Ukrainian market are given information and analytical support.
UCRFIN self-regulation mechanism
The retail Forex sector in Ukraine is currently unregulated, posing major dangers to customers and the market. Moreover, there are no constraints on the activity of fraudsters and pyramid schemes.
UCRFIN Regulatory Entity (Ukrainian centre for the development of OTC financial instruments and technologies) advocates for establishing a compensation scheme and self-regulation mechanism (SRO) to create mutual accountability among the forex form and protect their clients and their interest.
SRO members are required to be members of this fund. This fund will operate similarly to the function of the SRO special account with help from the members keeping in mind the magnitude of the market practices.
Using the transparent internal association documents, the funds’ finances and their distribution will be done among the impacted clients.
The UCRFIN Regulatory Entity (the Ukrainian centre for developing OTC financial instruments and technologies) follows this approach because it seems to be the most acceptable. UCRFIN is ready to work with all the market participants and professional community to improve their legislative acts.
UCRFIN promotes constructive collaboration among all parties and clear and honest discussion of all elements of Forex company regulation. In addition, UCRFIN strongly opposes any efforts to receive political or any kind of profits under the disguise of the regularity model development.
The UCRFIN based its code formulation on the idea that signing and fulfilling it would be tied to membership in the association. Therefore, these rules should be followed and are legally binding.
The functions for delivering these warnings and instructions and the suspension of membership in the association will be provided to the members of the association.
UCRFIN self-regulation mechanism objectives
Suppose all members are treated equally, and decisions taken inside the SRO are transparent. In that case, this paradigm might be a helpful instrument for market self-control and the exclusion of enterprises whose operations show dishonesty.
There is also the consideration of developing a compensation fund for clients affected by a violation of a member company, and its bankruptcy would be compensated the amount owed.
This would make it easier to supervise the market. The SRO should be strong and have clear and simple methods for supervising and influencing the performances of its members within the area of competence. This can be done through the regulated licensing of SROs and supervision of their performances.
Bottom line
UCRFIN Regulatory Entity (Ukrainian centre for developing OTC financial instruments and technologies) is a non-commercial organisation of the country’s largest brokerage firms that offer financial services on the foreign exchange market.
This association was established by Forex Club, TeleTrade, and RoboForex, three top International brokers with offices in Ukraine.
The UCRFIN’s major goals are as follows
- Overview of broker efforts aiming at enhancing the Ukrainian foreign exchange market
- Introducing the rules of conduct and common standards of brokers in the foreign exchange market
- The growth of Ukraine’s legal and regulatory framework in the financial services sector.
- Observing those who follow the internal standards, including the association members and other participants of the financial market in Ukraine.
- By implementing informational and educational initiatives, boosting the integrity and credibility of the Forex business in Ukraine.
- Aiding members in defending their rights and interests before various institutions and government agencies.
- Customer concerns are reviewed and forwarded to association members.
- Stopping the spreading of fraud.