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

of November 23, 2022 No. 106

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

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 and market development of securities to which changes and amendment are made, according to appendix to this resolution (further - the List).

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 Items 3 and 4 of the List which become effective since April 1, 2023.

Appendix

to the Resolution of Board of the Agency of the Republic of Kazakhstan on regulation and development of the financial market of November 23, 2022 No. 106

The list of regulatory legal acts of the Republic of Kazakhstan concerning regulation and market development of securities to which changes and amendment are made

1. Bring in the resolution of Board of National Bank of the Republic of Kazakhstan of April 28, 2012 No. 168 "About the minimum size of the authorized capital of the applicant (licensee)" (the following change is registered in the Register of state registration of regulatory legal acts at No. 7733):

state Item 1 in the following edition:

"1. Establish the minimum size of the authorized capital for the applicant on:

1) implementation of activities for management of investment portfolio with the right of attraction of voluntary pension contributions (the Voluntary accumulation pension fund) in the amount of 800 000 - the multiple size of the monthly settlement indicator established by the law on the republican budget for the corresponding financial year;

2) implementation of broker and (or) dealer activities with the right of account management of clients as the nominee holder in the amount of, not exceeding the requirement to the authorized capital, established in the Law of the Republic of Kazakhstan "About joint-stock companies" (further – the Law on the joint-stock company);

3) implementation of broker and (or) dealer activities without the right of account management of clients in form of business:

joint-stock company - in the amount of, not exceeding the requirement to the authorized capital, established in the Law on the joint-stock company;

limited liability partnerships - in the amount of, not exceeding the requirement to the authorized capital, established in the Law of the Republic of Kazakhstan "About partnerships with the limited and accessorial liability" (further – the Law on limited liability partnership);

4) implementation of activities for management of investment portfolio without the right of attraction of voluntary pension contributions in the amount of, not exceeding the requirement to the authorized capital, established in the Law on the joint-stock company;

5) combination of broker and (or) dealer activities with activities for management of investment portfolio without the right of attraction of voluntary pension contributions in the amount of, not exceeding the requirement to the authorized capital, established in the Law on the joint-stock company;

6) implementation of activities for the organization of trade with securities and other financial instruments in the amount of 500 000 - the multiple size of the monthly settlement indicator established by the law on the republican budget for the corresponding financial year;

7) implementation of clearing activities for transactions with financial instruments in the amount of 500 000 - the multiple size of the monthly settlement indicator established by the law on the republican budget for the corresponding financial year;

8) implementation transfer - agency activities by the professional participant of the security market created in form of business:

joint-stock company - in the amount of, not exceeding the requirement to the authorized capital, established in the Law on the joint-stock company;

limited liability partnerships - in the amount of, not exceeding the requirement to the authorized capital, established in the Law on limited liability partnership;

9) combination of activities for management of investment portfolio with the right of attraction of voluntary pension contributions with broker and (or) dealer activities in the amount of 800 000 - the multiple size of the monthly settlement indicator established by the law on the republican budget for the corresponding financial year.".

2. Bring in the resolution of Board of National Bank of the Republic of Kazakhstan of August 27, 2013 No. 214 "About approval of Rules of forming of risk management system and internal control for the organizations performing broker and dealer activities in the security market, activities for management of investment portfolio" (the following amendment is registered in the Register of state registration of regulatory legal acts at No. 8796):

in Rules of forming of risk management system and internal control for the organizations performing broker and dealer activities in the security market, activities for management of investment portfolio, approved by the specified resolution:

add with Item 7-1 of the following content:

"7-1. The authorized body within efficiency evaluation of risk management system and internal control of the broker and (or) the dealer, the Managing director is guided by the following principles:

1) the dominance of essence over form which is expressed in assessment of risk management system as the mechanism of measurement and assessment, monitoring, control, and risk minimization, but not formally regulated procedures and observance of requirements of the legislation of the Republic of Kazakhstan;

2) proportionality when implementing functions on control and supervision, and also in case of application by results of control and supervision of the measures provided by the laws of the Republic of Kazakhstan proceeding from the accepted business model, the scale of activities, types and complexity of transactions and depending on the assumed risks.".

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