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

of February 14, 2022 No. 6

About modification of some regulatory legal acts of the Republic of Kazakhstan concerning prudential regulation

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 prudential regulation (further - the List) to which changes, according to appendix to this resolution are made.

2. To provide to department of methodology and prudential regulation of the financial organizations 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 from the date of its first official publication and extends to the legal relationship which arose since January 1, 2022, except for paragraphs of the forty fifth, the forty sixth, the forty seventh, the forty eighth, the forty ninth, the fiftieth, the fifty first, the fifty second, fifty third, the fifty fourth, the fifty fifth, the fifty sixth, the fifty seventh, the fifty eighth, the fifty ninth, the sixtieth, the sixty first, the sixty second, sixty third, the sixty fourth, the sixty fifth, the sixty sixth, the sixty seventh, the sixty eighth, the sixty ninth, the seventieth, the seventy first, the seventy second, seventy third, the seventy fourth, the seventy fifth, the seventy sixth, the seventy seventh, the seventy eighth, the seventy ninth, the eightieth, the eighty first, the eighty second, eighty third, eighty fourth the eighty fifth, eighty sixth, eighty seventh, eighty eighth, eighty ninth, ninetieth, ninety first, ninety second, ninety third Item 1, and also Items 2 and 3 of the List which become effective since April 1, 2022.

It is approved National Bank of the Republic of Kazakhstan

It is approved Bureau of national statistics of the Agency on strategic planning and reforms of the Republic of Kazakhstan

Appendix

to the Resolution of Board of the Agency of the Republic of Kazakhstan on regulation and development of the financial market of February 14, 2022 No. 6

The list of regulatory legal acts of the Republic of Kazakhstan concerning prudential regulation to which changes are made

1. Bring in the resolution of Board of National Bank of the Republic of Kazakhstan of December 26, 2016 No. 304 "About establishment of normative values and techniques of calculations of prudential standard rates of the insurance (reinsurance) organization and insurance group and other regulations and limits, requirements, obligatory to observance, to the shares acquired by the insurance (reinsurance) organizations, the affiliated organizations of the insurance (reinsurance) organizations or insurance holdings (to shares in the authorized capital) legal entities, the list of bonds of the international financial institutions acquired by insurance holdings, the minimum required rating for the bonds acquired by insurance holdings and the list of rating agencies, and also the list of financial instruments (except for shares and shares in the authorized capital), acquired by the insurance (reinsurance) organizations" (it is registered in the Register of state registration of regulatory legal acts at No. 14794) the following changes:

in the Normative values and techniques of calculations of prudential standard rates of the insurance (reinsurance) organization and insurance group and other regulations and limits, obligatory to observance, approved by the specified resolution:

state Item 29 in the following edition:

"29. The actual margin of solvency calculated taking into account equity items is determined by the following formula:

FMP = UK + ND - NMA - Upl - Uop - And - SZ, where:

FMP - the actual margin of solvency calculated taking into account equity items;

UK - the paid authorized capital minus preferred shares;

ND - retained income of last years and the current year (including funds, reserve of unexpected risks, stabilization reserve, the reserves created at the expense of net income of last years and the current year), minus the dividends which are subject to payment;

NMA - intangible assets, except for the software acquired for the purposes of main insurance activity (reinsurance) organization;

Upl - uncovered loss of previous years;

Uop - uncovered loss of the accounting period;

And - investments into the authorized capital of other legal entities;

SZ - the subordinated loan granted faces which according to article 32 of the Law are the affiliated organizations of the insurance (reinsurance) organization, or to persons in whom the insurance (reinsurance) organization has considerable participation.".

state Item 34 in the following edition:

"34. In calculation of insurance value (reinsurance) organization taking into account their classification by quality and liquidity, join:

1) money:

money in cash desk in the amount which is not exceeding 1 (one) percent from the amount of assets of the insurance (reinsurance) organization minus reinsurance assets - of 100 (hundred) percent from book value;

money in transit in the banks of the second level of the Republic of Kazakhstan conforming to requirements of the subitem 5) of Item 38 of Standard rates - of 100 (hundred) percent from book value;

money on current accounts in the banks of the second level of the Republic of Kazakhstan conforming to requirements of the subitem 5) of Item 38 of Standard rates - in the amounts specified in Calculation of assets of the insurance (reinsurance) organization taking into account their classification by quality and liquidity according to the Table of assets of the insurance (reinsurance) organization taking into account their classification by quality and liquidity according to appendix 4 to Standard rates;

the money of the insurance (reinsurance) organization on accounts at the organization performing broker and (or) dealer activities in the security market which is in banks of the second level of the Republic of Kazakhstan, and in the central depositary - of 100 (hundred) percent from book value;

the money of the insurance (reinsurance) organization on accounts at the organization performing activities for management of investment portfolio which is in banks of the second level of the Republic of Kazakhstan - of 100 (hundred) percent from book value;

2) the deposits placed in the banks of the second level of the Republic of Kazakhstan conforming to requirements of the subitem 5) of Item 38 of Standard rates - in the amounts specified in the Table of assets of the insurance (reinsurance) organization taking into account their classification by quality and liquidity according to appendix 4 to Standard rates;

3) the deposits placed in the international financial institutions conforming to requirements of the subitem 6) of Item 38 of Standard rates - in the amounts specified in the Table of assets of the insurance (reinsurance) organization taking into account their classification by quality and liquidity according to appendix 4 to Standard rates;

4) the deposits placed in the nonresident banks conforming to requirements of the subitem 7) of Item 38 of Standard rates - in the amounts specified in the Table of assets of the insurance (reinsurance) organization taking into account their classification by quality and liquidity according to appendix 4 to Standard rates;

5) the financial instruments specified in subitems 8), 9), 10), 11), 12), 13), 14), 15), 16), 17), 18), 19), 20), 21), 22), 23), 24), 25), 26), 27) and 29) Item 38 of Standard rates - in the amounts specified in the Table of assets of the insurance (reinsurance) organization taking into account their classification by quality and liquidity according to appendix 4 to Standard rates;

6) loans to insurers of the insurance (reinsurance) organization performing activities for industry "life insurance" - of 100 (hundred) percent from the amount of principal debt;

7) fixed assets in the form of real estate in the amount which is not exceeding 5 (five) percent from the amount of highly liquid assets of the insurance (reinsurance) organization - of 100 (hundred) percent from the smallest size from balance sheet and market costs.

For the purpose of determination of market value of the fixed assets considered when calculating prudential standard rates, the insurance (reinsurance) organization carries out assessment of their cost at the appraiser at least once a year;

8) the amounts to obtaining from overcautious persons, insurance premiums to obtaining from insurers (reinsurers) and intermediaries in the amount which is not exceeding 10 (ten) percent from the amount of highly liquid assets of the insurance (reinsurance) organization, except for insurance premiums to obtaining from the legal entities specified in the subitem 10) of this Item;

9) the requirements to issuers of securities on payment of nominal value of securities which arose in connection with the expiration of their address provided by the prospectus of issue of securities (are not delayed under the terms of the prospectus of issue of securities) - of 100 (hundred) percent from book value;

10) insurance premiums to obtaining in the amount which is not exceeding 15 (fifteen) percent from the amount of highly liquid assets of the insurance (reinsurance) organization when insurer is:

the legal entity, more than 50 (fifty) percent of voting shares (shares in the authorized capital) which directly or indirectly belong to national managing holding;

the legal entity with rating not below "BB+" of Standard & Poor rating agency "s (Standard энд Purs) or other rating agencies;

the large systemically important enterprise corresponding to the following criteria:

the proceeds from sales of products (rendering services) constitute at least 50 (fifty) billion tenges annually for the last 2 (two) years;

tax assignments constitute at least 3 (three) billion tenges annually for the last 2 (two) years.

Insurance premiums to obtaining from insurers join in calculation of insurance value (reinsurance) organization taking into account their classification by quality and liquidity in case of payment by the insurer at least one twelfth part of insurance premium according to the insurance contract, taking into account additional (additional) agreements (agreements) to the insurance contract, or the first insurance premium under the agreement of accumulative insurance no later than the fifth working day following month under report.

Insurance premiums to obtaining from reinsurers join in calculation of insurance value (reinsurance) organization taking into account their classification by quality and liquidity in case of payment by the reinsurer at least one twelfth part of insurance premium under the agreement of reinsurance no later than the fifth working day following month under report.

(Reinsurance) organization taking into account their classification by quality and liquidity do not join in calculation of insurance value (except for receivables which arose in connection with placement of money on accounts at the organization performing broker and (or) dealer activities in the security market in case of transactions with financial instruments (the money specified subitem in paragraph six 1) to part one of this Item):

receivables delayed under the terms of the contract for term more than 3 (three) working days;

receivables delayed under the terms of the contract for term more than 30 (thirty) calendar days for the insurance (reinsurance) organizations which share of insurance premiums on the class "sickness insurance" constitutes more than 80 (eighty) percent in total amount of insurance premiums on current agreements of insurance (reinsurance) on reporting date;

receivables formed according to insurance contracts (reinsurance), effective period of insurance (reinsurance) protection according to which did not come;

receivables of large participants, the affiliated organizations, organizations in which the insurance (reinsurance) organization is large participant or have considerable participation, and also other affiliated organizations.

If the insurance contract (reinsurance) provides payment of insurance premium by installments in the form of periodic insurance premiums, then in case of failure to pay by the insurer (reinsurer) the due insurance premium for reporting date, when calculating insurance value (reinsurance) organization taking into account their classification by quality and liquidity receivables amount remaining balance (the subsequent periodic insurance premiums) is considered overdue.";

state Item 38 in the following edition:

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