Characterization of contractual financial institutions operating in the financial market
Among the contractual financial institutions operating in the financial market, these should be allocated.
Securities traders - are entities that act in accordance with the Law of Ukraine "On Securities and Stock Market" and are entitled to the financial market the following activities:
• a dealer;
• activities on securities management.
Traders in securities issue their own securities, and the money thus borrowed to buy securities of private corporations that provide guarantees on placement of securities in favor of third parties.
Financial services companies - a kind of specialized non-banking financial institution - whose main goal - to provide consumer loans to individuals, farmers, traders and others.
Financial company is based on the equity basis, does not attract deposits, and the main strategy has been reduced to a credit customer service, create target markets for individuals who use consumer credit for the purchase of durable goods (cars, appliances) for various vendors to develop their activities, as well as for farmers to buy machinery and other capital goods.
Insurance companies - is the financial market actors, whose activities are substantially different from the activities of other financial institutions.
Passive operations of insurance companies provide the specific features of capital accumulation. This is primarily due to the type of insurance.
When it comes to life insurance, then the accumulation of capital is based on calculations from the tables of mortality based on the duration of certain groups (actuarial calculations). Therefore, the accumulation of capital for life insurance, consider the following factors:
b) the level of income of different population groups;
c) The state of the system of social insurance and social security.
When it comes to property insurance against accidents that are the main factors:
a) The insurance rate, which determines the size of the premium of insurance is based on experience of past years, that is valid psychological factor;
b) The rates for property insurance against accidents are determined by the physical and moral deterioration of the property;
c) The third factor is based on the analysis and evaluation of the geography of the insurance risk on the basis of political and military expertise.
Private pension fund - this is a specific financial institution, whose activities are determined by the services in the field of active operations.
On the Western market, pension funds are established by companies, enterprises and corporations, which provide most of the passive operations at its own expense and contributions of employees, so in the field of passive operations pension funds do not develop specific marketing strategies and policies. In the field of active operations as pension funds need a balanced marketing policy and strategy. Pension funds need to manage their money long term by investing in different types of securities, to concentrate solely on certain types of stocks and private bonds.
The main task of the pension fund - effectively manage the investment portfolio and earn high levels of interest payments and, eventually, offer on this basis, different, improved forms of pension service in the future.
The activities of pension funds in Ukraine is regulated by the Law of Ukraine "On the private pension provision № 1057-IV dated July 9, 2003 The law defines legal, economic and organizational basis of non-state pension provision in Ukraine and regulates legal relations connected with this activity.