Selection of NSSM Members: Some Were Broken, Others Lost

Selection of NSSM Members: Some Were Broken, Others Lost

In 2024 the Verkhovna Rada of Ukraine adopted Law No. 3585 on the reform of the National Securities and Stock Market Commission. Most of its provisions, for example those on reorganizing the Commission’s apparatus into the Commission’s office so that employees would cease to be civil servants, expanded powers and guarantees of the Regulator’s independence, came into force then, in 2024. By the way, the Commission’s membership was increased from 7 to 8 people.

But the provisions on the competitive selection of the chair and members of the Commission, as well as the protections for those officials against unjustified dismissal, were postponed until 1 January 2026.

That allowed the President of Ukraine on 31 December 2025, at the end of the workday, to dismiss NSSM Chair Ruslan Mahomedov and within a few hours — “under the Christmas tree” — appoint the unknown Oleksiy Semenyuk to that position. Who, of course, did not undergo any selection process.

Then, in the first days of the new leader’s tenure, the President dismissed two NSSM members — Yaroslav Shlyakhov and Yuriy Boyko — at their own requests, which, as Economic Truth reported, they had submitted back in early September.

So literally in the first working week of 2026 the NSSM found itself in a minimally operational state — the Law of Ukraine “On State Regulation of Capital Markets and Organized Commodity Markets” (the state regulation law) stipulates that five members must be present at an NSSM meeting and that five votes are required to adopt a decision. The Commission has been operating in that composition ever since, weekly reporting dozens of adopted regulatory decisions. In other words, they managed with five people.

There were three obvious vacancies for Commission members and one less obvious one — the six-year term of NSSM member Maksym Libanov, appointed in 2018, expired in 2024. Also, according to the state regulation law, he continues to perform his duties until dismissed from office pursuant to paragraph 1 of part nine of article 6-1 of the Law and/or until a new Commission member is appointed in the manner established by that law.

Thus, not rushing with the competition (which, under the state regulation law, lasts up to 75 days), the President of Ukraine, by his Decree No. 443/2026 of 27 May this year, formed the relevant selection commission, and it, in just over two months, announced the competition for three positions starting on 1 August.

They did not announce a selection for Maksym Libanov’s seat, which he is “sitting out” while awaiting someone to replace him. At the same time, Maksym Libanov himself applied for the vacant position. And if his result is positive, circumstances could turn out such that there will be NSSM member Maksym Libanov appointed in 2018 who is waiting for someone to be appointed to his place, and NSSM member Maksym Libanov appointed by competition to the vacant post. Or, if he unexpectedly fails in the competition, he will still have a lawful basis to remain a Commission member until the end of times (that is, until a competition for the corresponding position is announced).

It would be good to ask — and hear an answer from — the Office of the President and the selection commission why a selection was not announced for the fourth vacant position. Considering that the need for it has existed the longest — for more than two and a half years. Since the start of the competition there have been no explanations for this decision.

Let us hope that the selection commission will advise the President to dismiss Mr. Libanov from his well-sat position.

In addition, other interesting circumstances arose during the selection process: the IMF memorandum provides that amendments to the state regulation law will be introduced by the end of the year, according to which “the governance structure will comply with the Constitution regarding the government’s responsibilities for regulatory bodies.”

In diplomatic translation, this means “the NSSM must become an executive authority (central executive body), not an agency within the presidential vertical.” By signing this document, the President of Ukraine, the Prime Minister of Ukraine, the Governor of the National Bank of Ukraine and the Minister of Finance of Ukraine personally indicated that the President’s powers to appoint NSSM members are unconstitutional.

But that is open secret; the interesting part is different.

To fulfill the relevant commitment, the NSSM prepared, and the government submitted to the Verkhovna Rada a draft law amending the Law of Ukraine “On State Regulation of Capital Markets and Organized Commodity Markets” to improve the functioning of the National Securities and Stock Market Commission (number, registration date: 16067 of 14.09.2026).

If adopted, the state regulation law will state that “the Commission is a central executive body with a special status, which is created pursuant to the law by the Cabinet of Ministers of Ukraine” and “the Commission as a collegial body is formed consisting of the chair and four members of the Commission.”

Thus the Cabinet of Ministers of Ukraine would have to form the NSSM with five people. At the same time, if the President of Ukraine appoints three NSSM members following the competition, the body would immediately have seven members (or eight if Maksym Libanov remains in his “old” status).

Whether the same chair and members will remain in the NSSM, or the CMU will select entirely new ones, what will happen to the Commission’s staff, and how the transformation of a state collegial body with an unclear status into a central executive body with a special status will take place — the government’s draft law gives no answers to any of these questions.

Just as the parliament is unlikely to answer why two years ago it was necessary to add +1 to the NSSM only to make it -3 two years later.

We will have to wait for the results of the President’s competition, and then for decisive reforms from the government. The main thing is not to confuse them.