Present legislation of Ukraine provides high level of protection of investors which are participants of institutes of joint investments market.

At the legislative level investors’ wrights are protected by the Law of Ukraine “About institutes of joint investments (unit and corporate investment funds)”.

State regulator of IJI market is State stock market and securities Committee (SSMSC) which monitors execution of legislation standards and requirements from the side of asset management companies (AMC).

According to legislation asset management company has to match a lot of requirements if wants to keep a license to provide asset management activity, among which are follows:

-          paying in money only shareholders’ equity (8 000 000 UAH for the present time);

-          presence of certificated staff which was professionally certificated by SSMSC of Ukraine;

-          matching requirements as to maintenance of material and technical functioning of asset management company;

-          availability of  recommendation of Ukrainian association of investment business and other participants of ukrainian stock market.

Mechanism of operational activity of AMC is built in such way that there are several independent professional market participants in it which control and protect investors’ interests.

Custodian – licensed stock market participant which provides recording and storage of asset of investment fund. Custodian provides independent control over operations with assets of the fund. Custodian can refuse in recording an operation if it acts against the Order and Investment declaration of the fund and obliged to inform about any violation from AMC the state regulator SSMSC.

Auditor – company which according to legislation provides independent financial audit of asset management activity of AMC. Information of independent audit is available for all investors of appropriate fund.

Appraiser – company which provides independent assessment of assets of investment fund.

Custodian, Auditor and Appraiser are independent from AMC companies. According to legislation it is forbidden for them to invest in funds which they serve as professional market participants.

Investor as a shareholder of investment fund has got a wide powers to control AMC activity.

As to above Investor has wrights to:

-          create a Supervisory board of the fund which controls AMC activity in field of asset management of appropriate fund (on conditions of Order of the fund);

-          propose changes to Investment declaration and Order of the fund on a base of decisions of Supervisory board and General meeting of shareholders;

-          take decision about changing of auditor, custodian in cases which remembered in Order of the fund;

-          get regular information about of asset management activity of appropriate fund.