The brother of the former head of Brokbusinessbank may become the head of the National Commission for Financial Services.

Rodion Morozov, the brother of Ukrainian banker Oleksandr Morozov, the former head of Brokbusinessbank and close to the current government, may be appointed Chairman of the National Commission for Regulation of Financial Services Markets (NatskFinService). Three sources in the non-banking financial market told Kapital this. "Yes, my brother has received offers to join the commission," Oleksandr Morozov confirmed. However, he does not rule out the possibility of a position as a member of the NatsFinService. Kapital was unable to contact Rodion Morozov yesterday.

Staff hunger
Today, Maksym Polyakov, appointed a member of the commission in March 2014, serves as the Chairman of the National Commission for Financial Services Markets. The only other member of the commission remaining in the leadership is Viktor Berlin, who oversees insurance market supervision. Ukrainian President Petro Poroshenko dismissed the remaining four members of the National Commission for Financial Services Markets – Valentyna Levchenko, Yuriy Nazarenko, Serhiy Biryuk, and Andriy Lytvyn – in October.
Due to the lack of a quorum (the commission's chair and five members are missing for decision-making—Capital), the financial regulator has been unable to function properly for three weeks. Non-bank financial market participants are currently turning to Maksym Polyakov with all their questions. However, on October 26, he was elected as a member of parliament on the list of Arseniy Yatsenyuk's People's Front party and is soon expected to replace the National Commission for Financial Services with the Verkhovna Rada.
In November, financiers increasingly began discussing the possibility of him giving up his parliamentary mandate in favor of heading the National Financial Services Commission. "It's not up to me, but if the market demands it, it's also possible," Polyakov commented on the rumors.
Meanwhile, potential candidates for the position of commission chair include former regulator head Andriy Volkov, who was never able to secure his position; former MTIBU CEO Natalia Gudyma; CEO of the Ukrainian Insurance Federation (UFI) Galina Tretyakova; former UFI president Oleksandr Zavada; and LSOU president Oleksandr Zaletov.
MTIBU guarantee funds total more than UAH 300 million.
A Capital source close to the presidential administration reported that the post will most likely be filled by Rodion Morozov, for whom his brother allegedly interceded.
Middle management
While personnel matters pertaining to the National Commission for Financial Services Regulation (NCFSRU) leadership can only be decided by the President of Ukraine, appointments at the department head level are the responsibility of the management itself. As Polyakov explained, the heads of three departments were recently updated, and the heads of two more will soon be appointed.
Specifically, Igor Nevinchanny has been appointed head of the Department of Financial Services Market Development and International Cooperation, Fedor Trinus of the Department of Supervision of Accumulative Pension Institutions, and Svyatoslav Ivchenko of the Administrative and Economic Department.
According to Polyakov, the new managers are under 30 years old, but they have financial education and relevant work experience. Non-banking financial market participants consider this an indirect sign that the current head of the National Financial Services Commission wants to retain leverage over the commission, even if he moves to the Verkhovna Rada.

Bureau Changes
There have also been reshuffles at the Motor (Transport) Insurance Bureau of Ukraine (MTIBU). The day before yesterday, they finally appointed new leadership. Volodymyr Shevchenko, head of the MTIBU audit commission and chairman of the supervisory board of the European Insurance Alliance, has been appointed as the bureau's general director. Yuriy Grishan, chairman of the Illichivske Insurance Company, has been appointed pro bono president of the bureau.
"This personnel decision is not a bad option. I know Vladimir Shevchenko. He has extensive experience in insurance, knowledge, and no history of corruption," noted Igor Yakovenko, president of the Insurance Business Association.
Insurers hope the new appointments will put an end to the bureau's management's battle with the non-banking financial market regulator for control of MTIBU's guarantee funds, which exceed UAH 300 million. Maksym Polyakov is delighted with the bureau's leadership change, but said he supported the appointments in exchange for three conditions. "The most important of these is to publish information on the MTIBU website in the coming days regarding the amount, maturity, and profitability of MTIBU guarantee funds deposited in banks, as well as the names of these banks, so as to dispel any suspicions of corruption," he stated. The regulator also requires MTPL sellers to refrain from paying agency fees above 20% and to cease paying compensation significantly higher than the market average. These requirements are scheduled to take effect in early December. MTPL sellers will be able to evaluate all the changes to MTIBU at a general meeting scheduled for December 18.

Tatyana Pavlyuchenko, Capital

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