Basic principles of financial markets regulation and legal aspects of the legislative requirements

Abstract

Financial services market (FSM) is one of the effective mechanisms for ensuring the competitiveness of the country’s economy. It is precisely because of its ability to direct investment flows into the most attractive segments of the economy, and the FSM development can contribute to economic growth. Accordingly, today it is important to strengthen the financial services market in Ukraine. For this purpose, it is necessary to study the current state, identify problems and determine the main directions of its development in a timely manner.The article investigates the financial services market in Ukraine, which is unstable, characterized by a significant outflow of financial resources, and underdeveloped financial intermediaries. FSM deterioration was also influenced by factors such as: financial crisis, sharp exchange rate fluctuations, military conflict, decline of the country’s economy, etc. Negative consequences of the events in the country were reflected even in a quite developed banking system. The focus is on the lack of financial culture in society, which is due to low deposit activity, high level of non-repayment of loans, lack of confidence in the new tools, and the introduction of new products in the financial services market. However, the development of the country as a whole is impossible without a strong financial services market.It is noted that one of the important conditions for the FSM development and the effectiveness of macroeconomic tasks entrusted to it is the formation of an effective mechanism of the financial market state regulation. Such a mechanism should include both elements of state regulation and self-regulation of the financial services market. Accordingly, the formation of indicators aimed at assessing the impact of state regulation on the development of the financial services market becomes relevant.The article examines the implementation of state regulation in financial services markets, analyzes the activity of the FSM state regulation in Ukraine and the control function effectiveness, considers the dynamics of the main indicators of the financial services markets development in Ukraine, and analyzes the level of financial services markets development.

Legal Protection of Financial Markets: A Review

“…Yazlyuk et al, [20] examined the financial services market in the Ukraine, the implementation of government regulations in the financial services markets in the Federated States of Micronesia in the Ukraine, and the effectiveness of the conclusion and control function by the current legislation of the Ukraine on financial services with the primary EU standards. The researchers used the descriptive and analytical approach and the use of the linear regression coefficients to assess the impact of the application of regulations on the level of development of financial market services.…”

“…The study found that the inconsistency of the procedures of the state authorities in the financial services markets related to the implementation of market control and supervision is a result of the lack of separate regulatory tools to solve these problems. The study recommended considering the current legal regulation [20].…”