The bill (Reg. No. 2700) suggests determine the sense of the notion “financial pyramid” and “to prohibit deliberate creation of conditions for a financial pyramid, to prohibit any offerings to participate in it and to prohibit attracting (obtaining) financial assets with the help of a financial pyramid.” Respective amendments are also made to the Criminal Code, the Laws “On Advertising” and “On Consumer Rights Protection.”      

According to the bill, a financial pyramid is any operations with financial assets (funds, securities, debt securities and the right to claim a debt that are not referred to the securities) that are carried out by entities and persons aiming at gaining or possibly gaining profit for oneself or others by redistributing assets of others, particularly without carrying out actual economic activity. A financial pyramid does not include transactions with financial assets that are carried out by financial institutions when they provide financial services, established by article 4 of the Law “On Financial Services and State Regulation of Financial Markets" or by the laws on regulation of financial services markets.   

The bill stipulates establish that deliberate creation of conditions for a financial pyramid, offerings to participate in it and attracting (obtaining) financial assets with the help of a financial pyramid is prohibited in Ukraine.

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