On 25 May 2026, Law of Ukraine No. 4824-IX “On Amendments to Certain Legislative Acts of Ukraine Regarding the Improvement of the Procedure for Transactions in the Interests of Minors and Children” (hereinafter, the “Law”) entered into force.
Legislative changes
The Law introduced amendments to civil and family legislation, including changes to the procedure for transactions carried out in the interests of children.
These changes have had a significant impact on the process of selling investment certificates of the non-diversified closed-end investment fund “OTP Kids” (hereinafter, the “Fund”). Previously, for transactions provided for by Part 2 of Article 177 of the Family Code of Ukraine to be carried out in the interests of a child, the written consent of one parent in a simple written form was sufficient. Under the new legislation, such consent must now be notarized.
What requirements now apply
For transactions provided for by Part 2 of Article 177 of the Family Code of Ukraine carried out in the interests of a minor child, the parents must now act jointly, or one parent must act on the basis of the other parent’s notarized consent.
If a transaction is carried out by a minor, the minor must obtain notarized consent from their parents.
At the same time, the requirement to obtain permission from the guardianship and custody authority for transactions provided for by Part 2 of Article 177 of the Family Code of Ukraine remains in place.
When the consent of one parent is not required
Current legislation also provides for cases where the consent of one parent is not required. In particular, if one of the parents:
- is a prisoner of war or hostage;
- has been interned in a neutral state;
- is missing under special circumstances;
- has been declared missing;
- has lived separately from the child for at least six consecutive months and has not participated in the child’s upbringing or maintenance;
- whose place of residence is unknown.
In such cases, transactions provided for by Part 2 of Article 177 of the Family Code of Ukraine may be carried out without that parent’s consent.
What this means for investors in the OTP Kids Fund
If the investment certificates are disposed of by the parents of a minor child, it is necessary to:
- Obtain permission from the guardianship and custody authority.
- Act jointly or obtain the other parent’s notarized consent for one parent to carry out the transaction.
If the investment certificates are disposed of by a minor child, it is necessary to:
- Obtain permission from the guardianship and custody authority.
- The child acts independently, provided that notarized consent from the parents for the disposal has been obtained.
Conclusion
Following the entry into force of the Law, the procedure for selling (disposing of) investment certificates owned by children has become more formalized. It now requires additional documents, including notarized parental consent and permission from the guardianship and custody authority.
In light of these changes, investment in the non-diversified closed-end investment fund “OTP Kids” should be viewed as a long-term investment. Before deciding to sell investment certificates, we recommend taking the new legislative requirements into account in advance, as well as allowing sufficient time to prepare the necessary documents.
