Parliamentarians will soon consider a draft law on self-regulatory organizations. Why is it important for business and consumers?
In recent days, the Ukrainian parliament has been facing a significant crisis of credibility both within individual factions and from the society, whose interests people’s deputies should defend.
In this context, it is quite difficult to predict how this situation will affect the legislative process, especially in terms of those initiatives that are not backed by resource lobbyists or private interests of beneficiaries of certain political forces.
For example, this Wednesday the parliament will consider draft law No.4221 on self-regulation of economic and professional activities. This is a framework document designed to provide all business areas with the right to self-organization to ensure fair competition and the development of entrepreneurs’ reputation.
For example, a self-regulatory association of entrepreneurs is entitled to establish mutually agreed quality standards in the relevant field, protect consumer rights if one of the association members does not comply with the stipulated rules, act as an authorized representative of the sector in cooperation with authorities and international professional communities, and advocate for the simplified business environment in the market.
Currently, not everyone has this right. Entrepreneurs engaged in land valuation, architectural activities, professional activities in the securities market, activities of arbitration managers, insurance activities, tourism, and several other areas are allowed to create self-regulatory organizations (SROs).
This right is granted to entrepreneurs by the provisions of 37 different regulations prescribing very different requirements for SROs and different approaches to functioning. This often leads to corruption and abuse of power.
In some laws, the self-regulatory status is given to a specific organization, and this fact creates room for manipulation and often slows down market development.
In addition to restoring the right to self-regulation for all entrepreneurs, the draft law No.4221 will solve the problems of existing SROs, such as conflict of interest in management, manipulation of market access for new players, bribes for documentation from SROs, non-transparency of organization’s decisions and more.
The draft law establishes uniform, unambiguous and clear rules of the game for everyone. For example, a mandatory requirement for a self-regulatory organization to publish internal rules and documents, financial statements, a register of members, draft decisions, and so on.
The draft law that will soon be considered by parliamentarians expands opportunities to protect the interests of all Ukrainian businesses, reduces state interference in a particular activity, and expands ways to protect the rights of consumers, who, in case of dissatisfaction with the goods or services of some entrepreneurs, can apply to the SRO, of which they are members. Absolutely all citizens will benefit from its implementation.
However, the question remains: will the Ukrainian parliament be able to make the necessary, long-awaited decisions not for a specific business, but for all citizens?
Source: Ekonomichna Pravda