Law of Ukraine
"On Holding a Residential Construction Experiment on the Basis of "Kyivmiskbud" Holding Company"
Date of entry into force:
April 18, 2000
The Law determines the procedure for creation and functioning of bank management funds.
According to Article 2 of the Law, an economic experiment will be conducted on the basis of Kyivmiskbud up to January 1, 2012, aimed to improve the social security of minors, provide them with more favorable starting conditions for independent life in the society, creating additional opportunities for pension benefits, stimulating residential construction development and expanding the opportunities for implementing other social security programs for the population of Ukraine, involving attracting funds from natural persons and legal entities for fiduciary management by authorized banks, subsequently directed to purchase mortgage certificates.
Authorized banks can attract funds for fiduciary management under other social security programs initiated by consent of Kyivmiskbud.
According to Article 3 of the Law, an Authorized Bank can carry out fiduciary management of several bank management funds simultaneously. An Authorized Bank manages a bank management fund according to the Rules of Bank Management and the Fiduciary Management Agreement.
Article 4 of the Law envisages that a system of protecting resources against devaluation, loss and other risks is implemented for the entire duration of the fiduciary management of funds attracted by authorized banks into the bank management fund.
The accounting for resources of the bank management fund by the authorized bank is done separately from the results of its economic activity. The authorized bank opens a fiduciary management account for each bank management fund. Payments under fiduciary management agreements concluded between a bank management fund participant and the authorized bank are done in the national currency of Ukraine. Accounting of the resources of a fixed-premium bank management pension fund is done in the national currency of Ukraine.
Management of the resources of bank management funds and payment of specific and additional pension benefits is done only by authorized banks.
Cessation of a bank management fund is possible only after the authorized bank fulfills all of its obligations under fiduciary management agreements.
Article 5 of the Law establishes the specifics for taxing the incomes of bank management fund participants and the authorized banks.
Article 6 of the Law states that after a participant of a bank management pension fund reaches 60 years of age, if male, or 55 years of age, if female, or receives the first disability group according to the procedure established by the legislation, participants of a bank management pension fund are entitled to additional pension benefits.
Additional pension benefits are paid by authorized banks using the resources of the bank management fund participants, under agreements on additional pension benefits.
Funds withdrawn from the account of a bank management fund participant due to early termination of the fiduciary management agreement are taxed according to the legislation (Article 7 of the Law).