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 27, 2005 No. 317

About approval of Rules of implementation of broker and dealer activities in the security market of the Republic of Kazakhstan

According to the subitem 8) Item 2 of article 3 of the Law "About the Security Market", the subitem 10) of article 12 of the Law "About State Regulation and Supervision of the Financial Market and the Financial Organizations", the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and the financial organizations (further - the Agency) DECIDES:

1. Approve Rules of implementation of broker and dealer activities in the security market of the Republic of Kazakhstan according to appendix 1 to this resolution.

2. Recognize invalid the regulatory legal acts of the Republic of Kazakhstan specified in appendix 2 to this resolution.

3. Excluded

4. This resolution becomes effective after fourteen days from the date of state registration in the Ministry of Justice of the Republic of Kazakhstan.

5. To department of supervision of subjects of the security market and accumulation pension funds (Tokobayev N. T.):

1) together with Legal department (Baysynov M. B.) to take measures to state registration in the Ministry of Justice of the Republic of Kazakhstan of this resolution;

2) in ten-day time from the date of state registration in the Ministry of Justice of the Republic of Kazakhstan to bring this resolution to the attention of the interested divisions of the Agency, Consolidation of legal entities "Association of financiers of Kazakhstan", the organizer of the biddings.

6. To department of the international relations and public relations of the Agency (Pernebayev T. Sh.) take measures to the publication of this resolution in mass media of the Republic of Kazakhstan.

7. To impose control of execution of this resolution on the vice-chairman of the Agency Bakhmutova E. L.

Appendix 1

to 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 27, 2005 No. 317

Rules of implementation of broker and dealer activities in the security market of the Republic of Kazakhstan

These rules are developed according to the Civil code of the Republic of Kazakhstan (General part) of December 27, 1994 and the Civil code of the Republic of Kazakhstan (Special part) of July 1, 1999, the Law of the Republic of Kazakhstan of July 2, 2003 "About the security market" and establish conditions and procedure of broker and dealer activities in the security market in the Republic of Kazakhstan (further - broker and dealer activities).

Chapter 1. General provisions

1. In part which is not settled by regulatory legal acts of the Republic of Kazakhstan broker and dealer activities are performed according to internal documents of the broker and (or) dealer, prisoners between the broker and (or) the dealer and his clients agreements on rendering broker services and customs (including business customs) if they do not contradict the legislation existing in the territory of the Republic of Kazakhstan.

2. Action of these rules extends on:

1) the banks which are brokers and (or) dealers in the part which is not contradicting the legislation of the Republic of Kazakhstan regulating banking activity, except for National Bank of the Republic of Kazakhstan;

2) the organizations exercising investment control of pension assets, the accumulation pension funds which are brokers and (or) dealers in the part which is not contradicting the legislation of the Republic of Kazakhstan on provision of pensions;

3) the managing companies of investment funds which are brokers and (or) dealers in the part which is not contradicting the legislation of the Republic of Kazakhstan on investment funds.

3. The broker and (or) the dealer can have one of the following license types on implementation of broker and dealer activities:

1) the license of the first category - with the right of account management of clients as the nominee holder (with the right of registration of security transactions);

2) the license of the second category - without the right of account management of clients (without the right of registration of security transactions).

4. In these rules the broker and (or) the dealer having the license of the first category hereinafter is referred to as as the broker and (or) the dealer of the first category, the license of the second category as the broker and (or) the dealer of the second category.

4-1. For the purposes of these rules in addition to rating estimates of the Standard & Poor agency "s Committee on control and supervision of the financial market and the financial organizations of National Bank of the Republic of Kazakhstan (further - authorized body) are also recognized rating estimates of the Moody agencies" to s Investors Service and Fitch, and their affiliated rating organizations (further - other rating agencies).

4-2. The broker and (or) the dealer books audit of the annual financial reporting.

When carrying out audit the broker and (or) the dealer provides all necessary documentation (materials) requested by auditing organization.

4-3. The broker and (or) the dealer records affiliates, according to the procedure, established by internal documents of the broker and (or) dealer.

4-4. No. 71 is excluded according to the Resolution of Board of National Bank of the Republic of Kazakhstan of 24.02.2012

4-5. Internal documents of the broker and (or) dealer establish responsibility of the workers of the broker and (or) dealer having access (using passwords) for login of exchange of electronic documents of Central Securities Depository, the stock exchange, the clearing organization and (or) the settlement organization performing the organization of calculations (payments) for transactions with financial instruments according to Item 1 of article 77-1 of the Law of the Republic of Kazakhstan of July 2, 2003 "About the security market" (further - the settlement organization).

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