TRANSFORMATION OF THE LEGAL REGULATION OF COLLECTIVE INVESTMENT INSTITUTIONS IN UKRAINE IN THE CONTEXT OF EUROPEAN INTEGRATION

Abstract

The article provides a comprehensive scientific analysis of the legal nature, classification features, and development trends of collective investment institutions (CIIs) in Ukraine. The research examines the current legislative framework, specifically the Law of Ukraine «On Collective Investment Institutions,» and compares the understanding of this category with the doctrinal approaches of leading legal scholars. The author substantiates the expediency of distinguishing between institutional-type CIIs (corporate investment funds – CIFs) and contractual-type CIIs (unit investment funds – UIFs), which do not possess the status of a legal entity. Special attention is paid to the practical aspects of the capital market’s functioning in Ukraine. The role of CIIs as reliable financial intermediaries and risk diversification tools for retail investors is investigated. Based on analytical data from the National Securities and Stock Market Commission (NSSMC) for the fourth quarter of 2025, a steady trend toward the dominance of CIFs in the domestic market has been identified, which is attributed to a higher level of corporate control. Furthermore, the study emphasizes the role of CIIs as key financial intermediaries that ensure risk diversification for small (retail) investors by pooling capital for the implementation of large-scale projects. A significant portion of the work is devoted to analyzing the experience of the European Union. The specificities of supranational regulation of institutions such as UCITS (Undertakings for Collective Investment in Transferable Securities) and AIFMs (Alternative Investment Fund Managers) are examined. Particular emphasis is placed on European mechanisms for protecting retail investors’ rights, specifically through the implementation of «Key Information Documents» (KIDs) in accordance with Regulation (EU) No. 1286/2014. In the context of upcoming reforms, the article analyzes the provisions of Draft Law No. 13246 «On Investment Funds,» which proposes a conceptually new model: a division into public and alternative funds, the introduction of the institute of depositary (custodial) institutions, and the adaptation of terminology to EU Directives. The author argues that the integration of these norms is critically important for attracting long-term financing for infrastructure projects and ensuring the financial stability of Ukraine during the period of post-war recovery.