THE RESOLUTION OF BOARD OF THE AGENCY OF THE REPUBLIC OF KAZAKHSTAN ON REGULATION AND DEVELOPMENT OF THE FINANCIAL MARKET

of September 21, 2020 No. 84

About modification and amendments in some regulatory legal acts of the Republic of Kazakhstan concerning regulation of the security market

For the purpose of enhancement of regulatory legal acts of the Republic of Kazakhstan Board of the Agency of the Republic of Kazakhstan on regulation and development of the DECIDES: financial market

1. Approve the List of regulatory legal acts of the Republic of Kazakhstan concerning regulation of the security market to which changes and additions are made (further - the List), according to appendix to this resolution.

2. To provide to department of the security market in the procedure established by the legislation of the Republic of Kazakhstan:

1) together with Legal department state registration of this resolution in the Ministry of Justice of the Republic of Kazakhstan;

2) placement of this resolution on official Internet resource of the Agency of the Republic of Kazakhstan on regulation and development of the financial market after its official publication;

3) within ten working days after state registration of this resolution submission to Legal department of data on execution of the action provided by the subitem 2) of this Item.

3. To impose control of execution of this resolution on the supervising vice-chairman of the Agency of the Republic of Kazakhstan on regulation and development of the financial market.

4. This resolution becomes effective after ten calendar days after day of its first official publication, except for paragraphs of the seventeenth, eighteenth, nineteenth and twentieth Item 6 of the List which become effective after 6 (six) months from the date of enforcement of this resolution.

Appendix

to the Resolution of Board of the Agency of the Republic of Kazakhstan on regulation and development of the financial market of September 21, 2020 No. 84

The list of regulatory legal acts of the Republic of Kazakhstan concerning regulation of the security market to which changes and additions are made

1. Bring in the resolution of Board of the Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and the financial organizations of August 21, 2004 No. 259 "About establishment of Rules, conditions and techniques of cost determination of assets of investment fund, net assets of investment fund, settlement cost of share of mutual investment fund and the price of share repurchase of joint-stock investment fund" (it is registered in the Register of state registration of regulatory legal acts at No. 3124) the following changes and amendment:

in the Rules, conditions and technique of cost determination of assets of investment fund, net assets of investment fund, settlement cost of share of mutual investment fund and the price of share repurchase of joint-stock investment fund established by the specified resolution (further - Rules):

state Item 7-2 in the following edition:

"7-2. The managing company carries monthly out tests for impairment of the financial instruments constituting assets of investment fund and creates the amount of necessary impairment or performs negative value adjustment, connected with impairment (reduction of cost) of these assets in case of loss of cost owing to non-execution or improper execution by the issuer of obligations on financial instruments.

All financial instruments constituting assets of investment fund are subject to tests for impairment.

Impairment or reduction of cost of financial instruments is performed according to impairment technique (further - the Technique).";

state Item 10 in the following edition:

"10. Assessment of assets and liabilities of investment fund which cost is expressed in foreign currency is performed at the market rate of currency exchange determined according to the procedure, No. 99 provided joint by the resolution of Board of National Bank of the Republic of Kazakhstan of January 25, 2013 No. 15 and the order of the Minister of Finance of the Republic of Kazakhstan of February 22, 2013 "About procedure for determination of the market rate of currency exchange" registered in the Register of state registration of regulatory legal acts at No. 8378, for date of cost determination of assets of investment fund.";

add with Item 11-1 of the following content:

"11-1. Obligations on dividend payout according to shares of joint-stock investment fund and shares of the closed investment fund are recognized managing company and custodian from date:

publications by joint-stock investment fund of information (decision) on dividend payout on Internet resource of depositary of the financial reporting;

emergence of the rights of holders of shares of the closed investment fund to receipt of dividends on conditions and according to the procedure, provided by rules of this closed-end investment fund.";

To state the amount of necessary impairment or reduction of cost of securities according to appendix 2 in edition according to appendix 1 to this List of regulatory legal acts of the Republic of Kazakhstan concerning regulation of the security market to which changes and additions are made (further - the List).

2. Bring in the resolution of Board of the Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and the financial organizations of September 30, 2005 No. 360 "About requirements to foreign legal entities for membership on the stock exchange" (the following change is registered in the Register of state registration of regulatory legal acts at No. 3916):

state Item 1 in the following edition:

"1. Determine that the foreign legal entities corresponding to one of the given conditions can be members of stock exchange:

1) being members of the stock exchanges which are part of World Federation of the exchanges (The World Federation of Exchanges);

2) the having corresponding licenses of authorized body of the country of residence for implementation of broker and (or) dealer activities. The admission of the specified foreign legal entities to the biddings on the stock exchange is possible only in the presence of international agreements about the cooperation and exchange of information between authorized bodies in the field of supervision of broker and (or) dealer activities providing mutual recognition of licenses for implementation of broker and (or) dealer activities;

3) the having corresponding licenses of authorized body of the country of residence for implementation of clearing activities which signs the Multilateral memorandum of understanding concerning consultations, cooperation and exchange of information of International Organization of Securities Commissions.".

3. Bring in the resolution of Board of National Bank of the Republic of Kazakhstan of February 24, 2012 No. 59 "About approval of Requirements to risk management system of the clearing organization, to conditions and procedure for monitoring, control and risk management in the clearing organization" (it is registered in the Register of state registration of regulatory legal acts at No. 7554, it is published on June 23, 2012 in the Kazakhstanskaya Pravda newspaper No. 199-200 (27018-27019)) the following changes:

in the Requirements to risk management system of the clearing organization, conditions and procedure for monitoring, control and risk management in the clearing organization approved by the specified resolution:

state Item 1 in the following edition:

"1. For the purposes of Requirements the following concepts are used:

1) the settlement organization - the organization performing the organization of calculations (payments) for transactions with financial instruments;

2) clearing - process of determination, check and information transfer about requirements and (or) obligations of clearing participants as a result of making by them of transactions with financial instruments;

3) clearing system - the software and hardware complex of the clearing organization intended for implementation of clearing activities;

4) operational risk - probability of emergence of losses as a result of inadequate or insufficient internal processes, human resources and systems or external events, including:

the risk caused by inadequate strategy, politicians and (or) standards in information technologies, shortcomings of use of the software;

the risk connected with inadequate information or its inappropriate use;

the risk connected with inadequate creation of business processes or weak control of observance of internal documents and rules;

the risk connected with inappropriate personnel management and (or) unskilled personnel of the clearing organization;

the risk connected with discrepancy of internal documents of the clearing organization to requirements of the legislation of the Republic of Kazakhstan;

the risk caused by unexpected or uncontrollable factors of external impact on activities of the clearing organization;

5) stress - testing - methods of measurement of potential influence on financial position of the clearing organization of exclusive, but possible events which exert impact on activities of the clearing organization;

6) authorized body - authorized body on regulation, control and supervision of the financial market and the financial organizations.";

state Items 5 and 6 in the following edition:

"5. The clearing organization at least once a quarter carries out stress testing on main types of risks (credit, system, operational, market) according to the procedure, provided by policy of the clearing organization for risk management.

6. Results stress testing on main types of risks (credit, system, operational, market) are drawn up according to the procedure, determined by policy of the clearing organization for risk management and contain the description of the scenario of stress test, reasons for the chosen scenario of stress test and the recommendation about results stress testing.";

exclude Item 7;

state Item 8 in the following edition:

"8. Availability of risk management system of the clearing organization provides compliance of activities of the clearing organization to requirements for corporate management, availability of practice of carrying out transactions within the performed professional type of activity in the security market, to functioning of clearing system.

Risk management system of the clearing organization provides control, monitoring and risk minimization, inherent in its activities.";

state Item 20 in the following edition:

"20. The procedure and conditions of forming, and also use of reserve, guarantee funds of the clearing organization and (or) mid-flight fees and other providing clearing participants include:

1) technique of determination and assessment of the sizes of reserve or guarantee funds of the clearing organization and (or) mid-flight fees, other providing clearing participants;

2) procedure and conditions of payment of mid-flight fees and other providing clearing participants, fees of clearing participants in guarantee fund of the clearing organization, forming of reserve fund of the clearing organization;

3) procedure and conditions of implementation of payments from reserve or guarantee funds of the clearing organization;

4) procedure and conditions of investment of assets of reserve or guarantee funds of the clearing organization:

in money on the correspondent account opened in National Bank of the Republic of Kazakhstan or on the bank account opened in "Central Securities Depository" Joint-stock company;

in money on accounts in the foreign corresponding banks having long-term international rating "VVV-" on the international scale of the Standard & Poor agency "s or the rating of similar level on the international scale of the Fitch or Moody agencies" is not lower than s Investors Service;

in money on current accounts in the banks of the second level of the Republic of Kazakhstan having long-term rating s or the rating of similar level on the international scale of the Fitch or Moody agencies" is not lower "In +" on the international scale of the Standard &Poor agency "than s Investors Service;

in government securities of the Republic of Kazakhstan;

in government bonds of the foreign states having long-term rating "AA" on the international scale of the Standard & Poor agency "s or the rating of similar level on the international scale of the Fitch or Moody agencies" is not lower than s Investors Service;

in the repo tools performed by "automatic" method;

in deposits in the banks of the second level of the Republic of Kazakhstan having long-term rating "BB+" on the international scale of the Standard & Poor agency "s or the rating of similar level on the international scale of the Fitch or Moody agencies" is not lower than s Investors Service;

in deposits in the nonresident banks of the Republic of Kazakhstan having long-term international rating "VVV-" on the international scale of the Standard & Poor agency "s or the rating of similar level on the international scale of the Fitch or Moody agencies" is not lower than s Investors Service;

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