On state regulation and supervision of the financial market

Unofficial English summary prepared for informational purposes. Official source: Әділет / adilet.zan.kz. Version checked: 2026-06-20. This is a reference card; in case of discrepancies, the official Kazakh and Russian texts prevail.

Metadata

Act number	№ 474-II
Act type	Law of the RK
Authority	Parliament of the RK
Adoption date	04.07.2003
Last amended	16.01.2026
Status	In force
Әділет identifier	Z030000474_

Scope and relevance

A framework law on the state regulation, control and supervision of the financial market and organisations (including insurers). It establishes the status of the regulator, the prohibition of activity without a licence, and the power to set prudential standards and mandatory limits.

Official source

• Full text (RU) — adilet.zan.kz
• Full text (KK) — adilet.zan.kz

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Official source: Adilet / https://adilet.zan.kz/rus/docs/Z030000474_ The relevance of the editorial office has been verified: 2026-06-20.

TABLE OF CONTENTS

This Law regulates public relations related to the implementation of state regulation, control and supervision of the financial market and financial organizations, and is aimed at increasing the stability of the financial system of the Republic of Kazakhstan and creating conditions to prevent violations of the rights and legitimate interests of consumers of financial services.

Chapter 1. General provisions

Article 1. Basic concepts used in this Law

This Law uses the following basic concepts:

1. unfair practices - actions (inaction) of subjects of behavioral supervision, the types and characteristics of which are established by paragraph 2 of Article 15-25 of this Law;

2) financial services – activities of professional participants in the insurance market (except for actuaries), professional participants in the securities market, voluntary accumulative pension fund, banking activities, activities of organizations carrying out certain types of banking operations, organizations carrying out microfinance activities, carried out on the basis of licenses obtained in accordance with the legislation of the Republic of Kazakhstan, as well as activities not subject to licensing:

unified pension savings fund;

central depository;

a single operator in the field of accounting for state property in terms of performing the functions of nominal holding of securities owned by the state, entities of the quasi-public sector, the list of which is approved by the authorized body for managing state property, or in respect of which the state, these entities of the quasi-public sector have property rights;

mutual insurance companies;

an organization that guarantees insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations;

3) consumer of financial services - an individual or legal entity intending to purchase services or using the services of a financial organization, a branch of a bank - a non-resident of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, a branch of an insurance broker - a non-resident of the Republic of Kazakhstan, as well as investing their funds in financial instruments;

4) financial market – a set of relations related to the provision and consumption of financial services, as well as the issue and circulation of financial instruments;

5) the authorized body for regulation, control and supervision of the financial market and financial organizations (hereinafter referred to as the authorized body) - a state body that carries out state regulation, control and supervision of the financial market and financial organizations;

6) responsible business practices in the financial market - a set of principles and actions aimed at ensuring honest, transparent and fair attitude of subjects of behavioral supervision towards consumers of financial services;

7) professional activity in the financial market – entrepreneurial activity in the provision of financial services;

8) financial product - a service offered by a financial organization, a branch of a non-resident bank of the Republic of Kazakhstan and a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan to consumers of financial services as part of professional activities in the financial market;

9) financial organization – a legal entity engaged in business activities providing financial services;

10) impeccable business reputation – professionalism and integrity of a person, confirmed, inter alia, by the absence of facts:

commission by the specified person of illegal actions (inaction) that led to insolvency, resulting in the forced liquidation of a financial organization, or to the application of a settlement regime to the bank;

unexpunged or unexpunged criminal record of the specified person, including the absence of a judicial act that has entered into legal force on the application of criminal punishment to the person in the form of deprivation of the right to hold the position of an executive employee of a financial organization, banking and (or) insurance holding company and to be a major participant (major shareholder) of a financial organization for life;

the presence of relationships with third parties (control and influence of third parties), whose actions contributed to the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction, based on information from the authorized body for financial monitoring;

11) inspection materials – materials generated by the control and supervision body during the course and based on the results of the inspection;

12) authorized agent - a person carrying out commercial representation of the subject of behavioral supervision, including an insurance agent;

13) behavioral supervision - activities of the authorized body aimed at preventing, identifying and suppressing violations of the rights and legitimate interests of consumers of financial services by actions (inactions) of subjects of behavioral supervision and (or) their authorized agents, provided for by Chapter 2-4 of this Law and other laws of the Republic of Kazakhstan;

14) subject of behavioral supervision - a bank, a branch of a non-resident bank of the Republic of Kazakhstan, an organization carrying out certain types of banking operations, a microfinance organization, a collection agency to which the rights (claims) under a bank loan agreement, an agreement for the provision of a microcredit concluded with an individual, an insurance (reinsurance) organization, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, have been assigned, as well as an organization carrying out brokerage activities in the market securities.

Article 2. Legislation of the Republic of Kazakhstan on state regulation, control and supervision of the financial market and financial organizations

1. The legislation of the Republic of Kazakhstan on state regulation, control and supervision of the financial market and financial organizations is based on the Constitution of the Republic of Kazakhstan, consists of this Law and other regulatory legal acts of the Republic of Kazakhstan.

2. If an international treaty ratified by the Republic of Kazakhstan establishes rules other than those provided for by this Law, then the rules of the international treaty apply.

Article 3. Main goals, objectives and principles of state regulation, control and supervision of the financial market and financial organizations

1. The main purpose of state regulation, control and supervision of the financial market and financial organizations is to help ensure the stability of the financial system.

2. To achieve the main goal provided for in paragraph 1 of this article, the authorized body is assigned the following tasks of state regulation, control and supervision of the financial market and financial organizations:

1. establishing standards for the activities of financial organizations, branches of banks - non-residents of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan, creating incentives to improve the corporate governance of financial organizations;

2) creation of equal conditions for the activities of financial organizations, branches of banks - non-residents of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan, aimed at maintaining fair competition in the financial market;

3) ensuring an adequate level of protection of the interests of consumers of financial services, completeness and accessibility of information for consumers about the activities of financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan and the financial services they provide, as well as increasing the level of financial literacy and financial accessibility for the population;

4) monitoring of the financial market and financial organizations, branches of banks - non-residents of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan in order to maintain the stability of the financial system;

5) focusing supervisory resources on areas of the financial market most exposed to risks in order to maintain financial stability;

6) other tasks provided for by this Law and other legislative acts of the Republic of Kazakhstan, aimed at achieving the main goal of state regulation, control and supervision of the financial market and financial organizations, provided for in paragraph 1 of this article.

3. The principles of state regulation, control and supervision of the financial market and financial organizations are:

1. efficient use of resources and regulatory tools;

2) transparency of the activities of financial organizations, branches of banks - non-residents of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan and financial supervision;

3) liability of financial organizations, branches of banks - non-residents of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan.

Article 4. Prohibition of unauthorized activities in the financial market

1. It is not allowed to carry out professional activities in the financial market by persons who do not have an appropriate license issued in accordance with the legislation of the Republic of Kazakhstan.

2. Transactions for the provision of financial services made without an appropriate license are invalid.

Article 5. Prudential standards and other mandatory norms and limits

Prudential standards are economic restrictions established by the authorized body for financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan in order to ensure their financial stability and protect the interests of consumers of financial services.

In cases provided for by the legislative acts of the Republic of Kazakhstan, the authorized body has the right to establish prudential standards and other mandatory norms and limits on a consolidated basis.

Article 6. Antimonopoly regulation of the financial market

Footnote: (Excluded by the Law of the Republic of Kazakhstan dated July 7, 2006 N 174).

Chapter 1-1. Status, structure and bodies of the authorized body

Footnote: Footnote. The Law is supplemented by Chapter 1-1 in accordance with the Law of the Republic of Kazakhstan dated July 3, 2019 No. 262-VI (the order of enforcement see Article 2).

Article 6-1. Status and legal basis for the activities of the authorized body

The authorized body is a government body directly subordinate and accountable to the President of the Republic of Kazakhstan, which carries out state regulation, control and supervision of the financial market and financial organizations.

The authorized body acts on the basis of its Regulations, approved by the President of the Republic of Kazakhstan.

The authorized body in its activities is guided by the Constitution of the Republic of Kazakhstan, this Law, other laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and international treaties of the Republic of Kazakhstan.

The authorized body is a legal entity in the organizational and legal form of a republican state institution, financed from the budget (cost estimate) of the National Bank of the Republic of Kazakhstan.

The authorized body develops a strategic plan for a five-year period, in which it determines the strategic directions, goals and target indicators of the activities of the authorized body.

The strategic plan is approved by the Chairman of the authorized body in agreement with the President of the Republic of Kazakhstan or, upon his authority, by the Head of the Administration of the President of the Republic of Kazakhstan.

Article 6-2. Structure and total staffing of the authorized body

The structure and total staffing of the authorized body are approved by the President of the Republic of Kazakhstan.

Article 6-3. Chairman of the authorized body

The chairman of the authorized body is appointed to the position by the President of the Republic of Kazakhstan for a period of six years.

The chairman of the authorized body acts on behalf of the authorized body and represents it without a power of attorney in relations with government bodies, organizations and other persons.

The Chairman of the authorized body is vested with the authority to make operational and executive-administrative decisions on the activities of the authorized body, with the exception of the powers stipulated by this Law for the Board of the authorized body, to conclude agreements on behalf of the authorized body.

The chairman of the authorized body is responsible for the activities of the authorized body.

The chairman of the authorized body has the right to resign by submitting his written statement to the President of the Republic of Kazakhstan two months before resigning.

The chairman of the authorized body is dismissed from office by the President of the Republic of Kazakhstan

Article 6-4. Deputy Chairmen of the authorized body

Deputy Chairmen of the authorized body are appointed to the position by the President of the Republic of Kazakhstan on the proposal of the Chairman of the authorized body for a period of six years, regardless of the terms of appointment of the Chairman of the authorized body.

Deputy Chairmen of the authorized body represent the authorized body without a power of attorney and sign documents within their competence.

Deputy Chairmen of the authorized body are dismissed from office by the President of the Republic of Kazakhstan upon the proposal of the Chairman of the authorized body.

Deputy Chairmen of the authorized body may resign by submitting their written statement to the President of the Republic of Kazakhstan through the Chairman of the authorized body two months before resigning.

Article 6-5. Board of the authorized body and its powers

The highest body of the authorized body is the Board.

Board of the authorized body:

1. determines priorities in the field of formation and development of the financial market;

2) adopts regulatory legal acts in the field of regulation of the activities of the financial market and financial organizations, as well as other persons in accordance with the goals and objectives provided for in paragraphs 1 and 3 of Article 3 of this Law and the legislation of the Republic of Kazakhstan. The list of subordinate regulatory legal acts is determined in the regulations on the authorized body;

3) determines the procedure for applying limited enforcement measures and supervisory response measures provided for by the laws of the Republic of Kazakhstan to financial organizations and other persons on issues within its competence;

6) together with the National Bank of the Republic of Kazakhstan, approves programs aimed at protecting the interests of consumers of financial services;

9) reviews, approves and submits for approval to the President of the Republic of Kazakhstan the structure, total staffing of the authorized body and the Regulations on the authorized body, as well as changes and additions to them;

9-1) approves the system of remuneration for employees of the authorized body in agreement with the President of the Republic of Kazakhstan;

10) approves the terms of remuneration and social security for employees of the authorized body;

11) reviews, accepts and submits for approval to the President of the Republic of Kazakhstan an annual report on the work of the authorized body;

12) approves the rules for appointment and termination of employment contracts with employees of the authorized body;

14) approves the rules for publishing financial statements by joint-stock companies and financial organizations, which determine the procedure for their publication, including the list of financial statements to be published and the timing of their publication;

15) approves the rules for creating provisions (reserves) in accordance with international financial reporting standards and the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting;

16) approves the rules for the issuance and circulation of bank certificates of deposit;

18. develops and approves rules for the acquisition by the authorized body of services related to ensuring the stability of the financial system;

18-1) together with the National Bank of the Republic of Kazakhstan and the authorized body in charge of ensuring the receipt of taxes and other obligatory payments to the budget, approves the rules for the withdrawal of cash by business entities from bank accounts;

18-2) approves the size of the targeted loss ratio, reliability factor and correction factors used to calculate the insurance premium for compulsory civil liability insurance of vehicle owners in accordance with the Law of the Republic of Kazakhstan “On compulsory civil liability insurance of vehicle owners”;

18-3) determines the conditions and procedure for the issuance, placement, turnover (circulation) and redemption of digital financial assets provided for in subparagraphs 2) and 3) of Article 5 of the Law of the Republic of Kazakhstan “On Digital Assets in the Republic of Kazakhstan”;

18-4) approves the list (types) of property that can act as the underlying asset of digital financial assets provided for in subparagraph 2) of Article 5 of the Law of the Republic of Kazakhstan "On Digital Assets in the Republic of Kazakhstan", as well as the procedure for accounting and storage of the underlying asset for such digital financial assets;

18-5) approves the requirements for organizations that have the right to act as organizations for storing the underlying asset of a digital financial asset in relation to digital financial assets provided for in subparagraph 2) of Article 5 of the Law of the Republic of Kazakhstan “On Digital Assets in the Republic of Kazakhstan”;

19) exercises other functions and powers provided for by this Law, other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

The requirements of subparagraphs 2), 3), 14), 15) and 17) of part two of this article apply to branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan.

For the purposes of applying subparagraph 14) of part two of this article in relation to branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan, financial reporting means reporting according to accounting data.

Article 6-6. Composition of the Board of the authorized body

The board of the authorized body consists of seven people.

The Board of the authorized body includes the Chairman of the authorized body, four officials of the authorized body, one representative each from the President of the Republic of Kazakhstan and the National Bank of the Republic of Kazakhstan.

Members of the Board of the authorized body from the President of the Republic of Kazakhstan, the National Bank of the Republic of Kazakhstan and the authorized body are appointed and dismissed accordingly by the President of the Republic of Kazakhstan, the Chairman of the National Bank of the Republic of Kazakhstan and the Chairman of the authorized body.

Article 6-7. Meetings of the Board of the authorized body

Meetings of the Board of the authorized body are held as necessary in accordance with the work plan approved by the Chairman of the authorized body.

Unscheduled meetings of the Board of the authorized body are held at the request of the Chairman of the authorized body or two members of the Board.

Members of the Board of the authorized body are promptly notified of the appointment of a meeting of the Board.

Meetings of the Board of the authorized body are chaired by the Chairman of the authorized body, and in his absence, by the person replacing him.

The Board of the authorized body is authorized to make decisions with the participation of at least two thirds of the members of the Board, which should include the Chairman of the authorized body or a person replacing him.

The decision of the Board of the authorized body is made by a simple majority of votes of the members of the Board. In case of equality of votes, the vote of the Chairman of the authorized body is decisive.

The Chairman of the authorized body, no later than within a week, has the right to return the decision of the Board with his objections for re-discussion and voting. If the Board, by two-thirds of the total number of votes, confirms the previously adopted decision, the Chairman of the authorized body signs the decision.

The board adopts a resolution on issues within its competence.

Chapter 2. Functions and powers of the authorized body

Footnote: Footnote. The title of Chapter 2 is as amended by the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Article 7. Status of the authorized body

Footnote: Footnote. Article 7 is excluded by the Law of the Republic of Kazakhstan dated 07/05/2012 No. 30-V (shall be enforced upon the expiration of ten calendar days after its first official publication).

Article 8. Tasks of the authorized body

Footnote: Footnote. Article 8 is excluded by the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Article 9. Functions and powers of the authorized body

Footnote: Footnote. The title of Article 9 is as amended by the Law of the Republic of Kazakhstan dated 07/05/2012 No. 30-V (shall be brought into force after ten calendar days after its first official publication).

1. For the purpose of state regulation, control and supervision over the activities of financial organizations, as well as other persons in accordance with this Law and other laws of the Republic of Kazakhstan, the authorized body:

1. in cases provided for by the laws of the Republic of Kazakhstan, issues permits for the opening (creation) of financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan, their voluntary reorganization and liquidation, including the voluntary reorganization of banking and insurance holding companies, voluntary termination of the activities of branches of non-resident banks of the Republic of Kazakhstan, insurance branches (reinsurance) non-resident organizations of the Republic of Kazakhstan, and also determines the procedure for issuing these permits;

1-1) in cases provided for by the laws of the Republic of Kazakhstan, issues permits for the voluntary reorganization of a microfinance organization in the form of conversion into a bank;

2) in cases provided for by the legislative acts of the Republic of Kazakhstan, gives consent or refuses to give consent to the election (appointment) of persons to positions of executive officers of financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan, bank holding companies, insurance holding companies, and also determines the procedure for giving said consent or refusing to give consent, including the criteria for the absence of impeccable business reputation;

3) carries out licensing of activities in the financial sector and activities related to the concentration of financial resources, within the competence established by the laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan;

3-2) carries out registration and maintenance of the register of collection agencies;

3-3) issues a permit for the right to carry out the activities of a credit bureau and an act on the compliance of the credit bureau with the requirements for the credit bureau to protect and ensure the safety of the credit history database, information systems used and premises;

3-4) exercises control and supervision over compliance by second-tier banks, branches of non-resident banks of the Republic of Kazakhstan and the National Postal Operator with requirements for the arrangement of premises;

4) adopts regulatory legal acts mandatory for execution by financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan, consumers of financial services, other individuals and legal entities on the territory of the Republic of Kazakhstan;

5) approves prudential standards and other mandatory norms and limits for financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan, including on a consolidated basis;

6-1) exercises, within the limits of its competence, control and supervision of compliance by financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan and the Development Bank of Kazakhstan with the procedure for automating accounting;

7-1) sends its representative to participate in the general meeting of shareholders (participants) of financial organizations, banking and insurance holding companies;

8) checks the activities of financial organizations and other persons specified in paragraph 1 of Article 15-1 of this Law, in cases and within the limits provided for by this Law and other laws of the Republic of Kazakhstan, including with the involvement of the National Bank of the Republic of Kazakhstan and an audit organization;

8-1) checks legal entities that have applied to the authorized body for a license to carry out activities in the financial market, in cases and within the limits provided for by the laws of the Republic of Kazakhstan;

8-2) carries out remote supervision, including on a consolidated basis, over the activities of financial organizations, their major participants, banking and insurance holding companies, organizations included in a banking conglomerate and an insurance group, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan, organizations guaranteeing the implementation of insurance payments, in the manner established by the laws of the Republic of Kazakhstan;

9) applies to financial organizations and other persons, branches of banks - non-residents of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan, limited enforcement measures, supervisory response measures, including using motivated judgment, sanctions and other measures provided for by the laws of the Republic of Kazakhstan, on issues within its competence, and also determines the procedure for applying supervisory response measures;

9-1) applies methods for assessing risks arising in the activities of banks, bank holding companies, banking conglomerates, insurance (reinsurance) organizations, insurance groups, insurance holding companies, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, organizations carrying out brokerage and (or) dealer activities in the securities market and (or) investment portfolio management activities;

10. in agreement with the Government of the Republic of Kazakhstan, makes a decision on the forced repurchase of shares of financial organizations in cases provided for by the legislative acts of the Republic of Kazakhstan;

11) exercises control over the activities of temporary administrations, liquidation commissions of financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan in cases provided for by the legislative acts of the Republic of Kazakhstan;

12) publishes in the media information about financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan, collection agencies, credit bureaus, operators of electronic trading platforms for the sale of banking and microfinance assets (except for information constituting official, commercial, banking or other secret protected by law), including information about measures taken against them;

13) applies a risk-based approach within the framework of control and supervision over the activities of banks, banking conglomerates, organizations carrying out certain types of banking operations, insurance (reinsurance) organizations, insurance groups, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, organizations carrying out brokerage and (or) dealer activities in the securities market, investment portfolio management activities, microfinance organizations, including including using a reasoned judgment in the cases provided for in paragraph 2 of Article 13-5 of this Law;

14) introduces a special regulatory regime in relation to financial organizations and (or) other legal entities and regulates their activities within the scope of their competence;

16) carries out the functions of an industry center for information security of the financial market and financial organizations, branches of banks - non-residents of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan;

17) conducts an analysis of information about information security incidents of banks, branches of non-resident banks of the Republic of Kazakhstan and organizations carrying out certain types of banking operations, including information about violations and failures in information systems;

18) independently and (or) jointly with other government bodies of the Republic of Kazakhstan within their competence, as well as with organizations, carries out the development of Islamic finance taking into account international standards of Islamic financial instruments and Islamic financial services;

19) exercises control over the fulfillment by banks of obligations accepted as part of measures to rehabilitate second-tier banks, including those financed from the state budget, the National Bank of the Republic of Kazakhstan and (or) its subsidiaries;

19-1) carries out a preliminary procedure to determine non-marketable assets of banks acceptable for acceptance by the National Bank of the Republic of Kazakhstan as collateral for a loan of last resort (collateral preposition), and monitoring of non-marketable assets in the collateral preposition;

20) implements programs for refinancing residential mortgage loans and mortgage loans to individuals, carried out through subsidiaries of the National Bank of the Republic of Kazakhstan, as well as control over the fulfillment by banks of obligations accepted within the framework of these programs;

20-1) exercises, within its competence, control and supervision over compliance by financial organizations with information security requirements;

20-2) exercises, within the limits of its competence, control and supervision over the use by financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan of artificial intelligence systems;

21) exercises other functions and powers provided for by this Law, other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

2. The authorized body has the right to conduct inspections of financial organizations and their affiliates, branches of banks - non-residents of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan, including with the involvement of audit organizations, appraisers and specialists in the field of financial technologies for the purpose of:

1. determining the financial condition of financial organizations and their affiliates, branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan;

2. determining compliance with the legislation of the Republic of Kazakhstan of the management structure and decision-making procedures of financial organizations and their affiliates, branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan;

3) determination of affiliates of financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan;

4. identifying and preventing violations of the rights of consumers of financial services;

5. identifying and preventing unauthorized activities in the provision of financial services or issuance of financial instruments;

6) identifying and (or) preventing risks inherent in information technologies when performing financial transactions;

7) assessing the objectivity of determining the value of financial instruments.

2-1. The authorized body exercises, within its competence, control and supervision over compliance by financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan, the National Postal Operator, issuers of digital financial assets provided for in subparagraphs 2) and 3) of Article 5 of the Law of the Republic of Kazakhstan "On Digital Assets in the Republic of Kazakhstan", the requirements of the legislation of the Republic of Kazakhstan on combating the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction.

2-2. The authorized body has the right to have its representative in banks, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, bank holding companies that manage investment portfolios, insurance (reinsurance) organizations, insurance holding companies, organizations that guarantee the implementation of insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations (hereinafter - representative) for the purpose of exercising supervisory functions.

2-3. The authorized body exercises, within its competence, control and supervision of compliance by banks and branches of non-resident banks of the Republic of Kazakhstan with the values ​​of macroprudential standards and limits established by the National Bank of the Republic of Kazakhstan.

3. In addition to the functions and powers provided for in paragraphs 1, 2, 2-1 and 2-2 of this article, the authorized body exercises other powers for state regulation, control and supervision of financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan, banking and insurance holding companies, banking conglomerates and insurance groups, taking into account the specifics, provided for in Articles 10 - 13 of this Law, as well as other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

4. The authorized body does not have the right to interfere in the activities of financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan, except for cases provided for by the legislative acts of the Republic of Kazakhstan.

5. The authorized body, for the purpose of providing a loan of last resort by the National Bank of the Republic of Kazakhstan, submits the following information to the National Bank of the Republic of Kazakhstan:

1. conclusion on the feasibility of providing a loan of last resort and the bank’s compliance with the requirements provided for in subparagraph 1) of paragraph 1 of Article 51-3 of the Law of the Republic of Kazakhstan “On the National Bank of the Republic of Kazakhstan”, for consideration by the Board of the National Bank of the Republic of Kazakhstan of the issue of providing a loan of last resort;

2) on determining the bank’s assets acceptable for acceptance by the National Bank of the Republic of Kazakhstan as collateral under the loan agreement of last resort;

3) about the current state of the bank’s assets accepted and (or) accepted as collateral under the loan agreement of last resort;

4) a list of second-tier banks for making a decision on the sale of assets that are collateral under a loan agreement of last resort.

6. Cancellation of decisions of the authorized body on deprivation of a financial organization, a branch of a non-resident bank of the Republic of Kazakhstan, a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non-resident insurance broker of the Republic of Kazakhstan of a license to conduct all types of operations and activities, on classifying a bank as an insolvent bank, classifying a branch of a non-resident bank of the Republic of Kazakhstan as an insolvent branch of non-resident banks of the Republic of Kazakhstan, applying settlement measures of a bank classified as an insolvent bank, the establishment of a conservation regime for a financial organization, as well as decisions of the temporary administration of a bank, an insurance (reinsurance) organization on carrying out an operation to transfer assets and liabilities of the bank, transfer of an insurance portfolio does not entail a change or termination of the legal consequences that arose as a result of the adoption of these decisions.

Article 9-1. Task, functions, rights and responsibilities of the representative

Footnote: Footnote. The Law is supplemented by Article 9-1 in accordance with the Law of the Republic of Kazakhstan dated July 15, 2010 No. 338-IV (the order of enforcement see Article 2); excluded by the Law of the Republic of Kazakhstan dated 07/03/2019 No. 262-VI (shall be enforced from 01/01/2020).

Article 9-2. Remote supervision

Footnote: Footnote. The law is supplemented by Article 9-2 in accordance with the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (shall be enforced upon the expiration of ten calendar days from the date of its first official publication); excluded by the Law of the Republic of Kazakhstan dated 07/03/2019 No. 262-VI (shall be enforced from 01/01/2020).

Article 9-3. Risk-based approach within the framework of control and supervision

Footnote: Footnote. The law is supplemented by Article 9-3 in accordance with the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (shall be enforced from 01/01/2019); excluded by the Law of the Republic of Kazakhstan dated 07/03/2019 No. 262-VI (shall be enforced from 01/01/2020).

Article 9-4. Requirements for executive employees of a bank, insurance (reinsurance) organization, insurance broker, branch of a bank - non-resident of the Republic of Kazakhstan, branch of an insurance (reinsurance) organization - non-resident of the Republic of Kazakhstan, branch of an insurance broker - non-resident of the Republic of Kazakhstan, unified accumulative pension fund, voluntary accumulative pension fund, joint-stock company "Insurance Payment Guarantee Fund", professional participant in the securities market, banking, insurance holding companies

1. For the purposes of this article:

1. a market entity means a bank, an insurance (reinsurance) organization, an insurance broker, a branch of a bank - a non-resident of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, a branch of an insurance broker - a non-resident of the Republic of Kazakhstan, a unified accumulative pension fund, a voluntary accumulative pension fund, the Insurance Payment Guarantee Fund (hereinafter referred to as the Fund), a professional participant in the securities market, banking, insurance holding companies;

2) a branch means a branch of a bank - a non-resident of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, a branch of an insurance broker - a non-resident of the Republic of Kazakhstan;

3) a candidate for the position of a managerial employee is understood to be an individual who intends to occupy the position of a managerial employee of a market entity, or a person elected to the position of a member of the management body of a market entity;

4) a managerial position means the following positions:

managerial employee of a financial organization, branch;

the head of a structural unit of a financial organization, coordination and (or) control over whose activities are carried out directly by the management body, manager, member of the executive body or other senior employee of the financial organization;

the head of a structural unit of the branch, coordination and (or) control over the activities of which is carried out directly by the head, deputy head, or other managerial employee of the branch;

the first head, his deputy, head, deputy head of an independent structural unit of a state body in the field of regulation of financial services and (or) in the field of state regulation and control in the field of auditing activities of financial organizations;

a political civil servant who ensures the formation of public policy in the areas of economics, finance or government audit and financial control;

the head of the management body, the head of the executive body, as well as his deputy, who oversees financial issues and (or) the activities of subsidiaries of financial organizations, a national management holding company, the Development Bank of Kazakhstan, a special fund for the development of private entrepreneurship, the Export Credit Agency of Kazakhstan;

the first head, his deputy, head, deputy head of an independent structural unit:

international financial organizations, the list of which is established by the authorized body;

organizations conducting audits of financial organizations, including foreign organizations and legal entities;

organizations operating in the field of software development used to automate the activities of financial organizations;

another head of a financial organization or branch supervising one or more structural divisions whose activities are related to the provision of financial services.

2. To occupy a position (appointment (election) to a position) of a managerial employee of a market entity, an individual must:

1. having an impeccable business reputation;

2) presence of higher education;

3) availability of work experience for:

head of a governing body – at least five years;

member of the governing body – at least two years;

the head or member of the management body who is a member of the executive body of the parent financial organization, the head of the executive body (a person solely performing the functions of the executive body), the head of a branch of a bank - a non-resident of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan - at least five years, including at least three years in a management position;

deputy head, members of the executive body, deputy head of a branch of a bank - non-resident of the Republic of Kazakhstan, deputy head of a branch of an insurance (reinsurance) organization - non-resident of the Republic of Kazakhstan, head of an insurance broker, his deputy, head of a branch of an insurance broker - non-resident of the Republic of Kazakhstan, his deputy - at least three years, including at least two years in a leadership position;

chief accountant – at least three years;

deputy chief accountant – at least two years;

other management employees – at least one year.

Work experience is not required for:

candidates for positions of members of the executive body of a financial organization, banking, insurance holding company, supervising exclusively security issues, administrative and economic issues, information technology issues;

member of the Government of the Republic of Kazakhstan, deputy head of the central executive body of the Republic of Kazakhstan, who is a candidate for the position of head of the management body of an insurance (reinsurance) organization, a professional participant in the securities market, a voluntary accumulative pension fund, more than fifty percent of the outstanding shares of which directly or indirectly belong to the state and (or) the national management holding company, a unified accumulative pension fund;

the head, deputy head of an independent structural unit of the central executive body that carries out management and intersectoral coordination in the field of social protection of the population in accordance with the legislation of the Republic of Kazakhstan, who is a candidate for the position of member of the management body of the unified accumulative pension fund;

the head of the management body, the executive body of the national management holding, as well as his deputy, who oversees financial issues and (or) the activities of subsidiaries of the financial organizations of the national management holding, who is a candidate for the position of head, member of the management body of a financial organization, more than fifty percent of the outstanding shares of which directly or indirectly belong to the national management holding;

4) availability of information that during the ten years preceding the date of filing the application for approval for the position of an executive officer, the person was not a manager, member of the management body, head of the executive body, his deputy or member of the executive body, chief accountant, deputy chief accountant of a financial organization, manager, deputy head, chief accountant, deputy chief accountant of a branch of a bank - non-resident of the Republic of Kazakhstan, branch of an insurance (reinsurance) organization - non-resident of the Republic Kazakhstan, a branch of an insurance broker - a non-resident of the Republic of Kazakhstan, a major participant - an individual, the head of a major participant (bank holding company) - a legal entity of a financial organization, including a financial organization - a non-resident of the Republic of Kazakhstan, in the period no more than one year before:

deprivation of the license of a financial organization, including a financial organization - a non-resident of the Republic of Kazakhstan, a branch, which resulted in their liquidation and (or) termination of activities in the financial market;

the entry into force of a judicial act on the forced liquidation of a financial organization, including a financial organization - a non-resident of the Republic of Kazakhstan, or declaring it bankrupt in the manner established by the legislation of the Republic of Kazakhstan, the legislation of the state of which the financial organization - a non-resident of the Republic of Kazakhstan is a resident;

the entry into force of a judicial act on the forced termination of the activities of a branch of a bank - a non-resident of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan in cases established by the laws of the Republic of Kazakhstan.

5) the absence, during the last twelve months preceding the date of filing the application for approval for the position of a managerial employee, of cases of withdrawal of a person’s consent to appointment (election) to the position of a managerial employee and (or) removal of him from official duties in this and (or) another market entity through the application of a supervisory response measure;

6) availability of information that:

there is no court conviction for committing a corruption crime that has entered into legal force;

the person, during the three years preceding the date of filing the application for approval for the position of a managerial employee, was not released from criminal liability for committing a corruption crime on the basis of paragraphs 3), 4), 9), 10) and 12) of part one of Article 35 or Article 36 of the Criminal Procedure Code of the Republic of Kazakhstan, and was not brought to administrative responsibility for committing administrative corruption offenses;

7) availability of information that during the five years preceding the date of filing the application for approval for the position of an executive employee, the person was not an executive employee of a financial organization - issuer, a major participant (major shareholder) - an individual, manager, member of the management body, manager, member of the executive body, chief accountant (his deputy) of a major participant (major shareholder) - a legal entity - issuer that defaulted on the payment of coupon interest on issued issue-grade securities in the presence of one of the following circumstances:

non-payment of coupon interest on issued securities lasted for four or more consecutive periods;

the amount of debt to pay the coupon interest on the issued securities on which there was a default was four times and (or) more than the amount of the coupon interest;

the amount of default on payment of the principal debt on issued securities was an amount ten thousand times greater than the monthly calculation indicator established by the law on the republican budget on the date of payment.

3. When calculating work experience, the following work experience is taken into account:

for the provision of financial services, including in foreign organizations and legal entities;

on regulation, control and supervision of the financial market and financial organizations, including foreign organizations;

on conducting audits of financial organizations, regulating services for auditing financial organizations, including foreign organizations and legal entities;

in positions of political civil servants ensuring the formation of public policy in the fields of economics, finance or government audit and financial control;

in the national management holding company, the Development Bank of Kazakhstan, the special fund for the development of private entrepreneurship, the Export Credit Agency of Kazakhstan in the positions provided for in paragraph seven of subparagraph 4) of paragraph 1 of this article;

in international financial organizations, the list of which is established by the authorized body;

on the development of software used to automate the activities of financial organizations;

as an actuary licensed to carry out actuarial activities in the insurance market;

in organizations licensed to provide financial services on the territory of the Astana International Financial Center.

When calculating length of service, work in a financial organization or branch related to ensuring security, carrying out administrative and economic activities, developing information technologies (with the exception of the head of a structural unit ensuring the development of information technologies and (or) information security), and work in a mutual insurance company is not taken into account.

Features of the length of work experience for candidates for the position of managerial employee who have professional qualifications confirmed by international certificates, and the list of such certificates are established by the regulatory legal act of the authorized body.

The presence of work experience provided for in paragraphs eight, nine and ten of part one of this paragraph is not taken into account for a candidate for the position of an executive employee of a bank or a branch of a bank that is a non-resident of the Republic of Kazakhstan.

The requirement of paragraph eight of part one of this paragraph does not apply to a candidate for the position of a managerial employee of a professional participant in the securities market.

The provisions of this paragraph do not apply to candidates for the position of head or member of the management body of a banking or insurance holding company.

4. A person who does not meet the requirements established by Article 46 of the Law of the Republic of Kazakhstan “On Banks and Banking Activities in the Republic of Kazakhstan” cannot be a member of the board of directors - an independent director of a bank.

A member of the board of directors - an independent director of an insurance (reinsurance) company cannot be a person connected with the insurance (reinsurance) company by special relations and (or) who was one during the three years preceding the date of filing the application for his approval for the position.

A member of the board of directors - an independent director does not have the right to hold the specified position in one bank, insurance (reinsurance) organization, unified accumulative pension fund, voluntary accumulative pension fund, professional participant in the securities market, Fund for more than nine consecutive years from the date of his first appointment, except for cases provided for by the regulatory legal act of the authorized body.

5. A major participant in a bank, insurance (reinsurance) organization, manager of an investment portfolio cannot be elected to the position of head of the executive body of this bank, insurance (reinsurance) organization, manager of an investment portfolio.

The number of members of the executive body of a market entity created in the form of a joint stock company must be at least three people.

6. It is not permitted to perform the functions of a managerial employee of a market entity by a person who does not have the appropriate consent of the authorized body, with the exception of:

member of the governing body, but not more than sixty calendar days from the date of his appointment (election);

executive employees of a person acquiring the status of a banking or insurance holding company, but not more than sixty calendar days from the date the person acquires the characteristics of a banking or insurance holding company with the consent of the authorized body to acquire the status of a banking or insurance holding company.

7. A person may be re-appointed (elected) to the position of a member of the management body of a market entity, with the exception of a branch, no earlier than ninety calendar days, but no more than two times within twelve consecutive months, after:

receiving a refusal from the authorized body to issue consent to the appointment (election) to the position of a managerial employee;

termination of powers of a member of the management body before the consent of the authorized body is issued;

expiration of the period provided for in paragraph 6 of this article and failure to submit documents for its approval.

The prohibition provided for in this paragraph does not apply to banking and insurance holding companies.

8. It is prohibited to perform the duties (replacement of a temporarily absent) executive employee of a market entity by persons who do not meet the requirements of this article and have not been agreed upon with the authorized body, except in cases where the duties are assigned for a period of no more than sixty calendar days:

the head of the executive body to a person who has the consent of the authorized body for appointment (election) as a member of the executive body;

chief accountant to a person who has the consent of the authorized body for appointment (election) as deputy chief accountant.

It is not permitted to assign the duties (replacing a temporarily absent) head of an executive body or the chief accountant to the persons specified in part one of this paragraph due to the absence of a candidate agreed upon with the authorized body for a total of more than one hundred and eighty calendar days within twelve consecutive months.

After the expiration of the period specified in part one of this paragraph and paragraph 6 of this article, and in the event of failure to submit a full package of documents for approval to the authorized body or refusal by the authorized body to approve the candidate for the position of a managerial employee, he is not entitled to exercise the powers of a managerial employee.

Advertisement insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan.

This restriction does not apply if:

banks are parent and subsidiary organizations in relation to each other;

insurance (reinsurance) organizations are parent and subsidiary organizations in relation to each other.

The head, deputy head, chief accountant of a branch is not entitled to hold the position:

managerial employee in a financial organization, other branches;

the head of the executive body or the person solely performing the functions of the executive body of the legal entity.

10. When appointing (electing) management employees, a market entity independently checks them for compliance with the requirements of this article, including taking into account information posted on the Internet resource of the authorized body.

11. The authorized body considers the documents submitted for issuing consent to the appointment (election) to the position of a managerial employee within thirty working days from the date of submission of the full package of documents in accordance with the requirements of the regulatory legal acts of the authorized body.

The procedure for issuing the consent of the authorized body for the appointment (election) to the position of a managerial employee, including the criteria for the absence of an impeccable business reputation, documents required to obtain consent, features of the length of work experience for candidates with professional qualifications confirmed by international certificates, and the list of such certificates are established by the regulatory legal act of the authorized body.

For the issuance of consent to the appointment (election) to the position of an executive employee, with the exception of the position of an executive employee of a professional participant in the securities market, a unified accumulative pension fund, a voluntary accumulative pension fund, a fee is charged, the amount and procedure for payment of which are determined by the tax legislation of the Republic of Kazakhstan.

The assessment of the business reputation of a managerial employee (candidate for the position of a managerial employee) is carried out by the authorized body, including using a motivated judgment, in accordance with Article 13-5 of this Law.

The authorized body suspends the period for reviewing the documents specified in part one of this paragraph when it forms a reasoned judgment regarding a candidate for the position of a managerial employee. This period is suspended from the moment the draft motivated judgment is sent to the person who provided the documents for approval of the candidate for the position of a managerial employee until the date the authorized body accepts the motivated judgment.

When forming and using a motivated judgment, the authorized body sends a corresponding notification to the market entity.

12. A person who has the consent of the authorized body for appointment (election) to the position of a managerial employee may be appointed (elected) to the agreed position within twelve months from the date of receipt of the said consent.

A managerial employee who has the consent of the authorized body for appointment (election) to the position of a managerial employee may be appointed to the agreed position within twelve months from the date of termination of the powers of the managerial employee without re-obtaining the consent of the authorized body, except for the case where the said consent has ceased to be valid.

A person agreed with the authorized body to the position of a member of the board of directors - an independent director of a financial organization, within twelve months from the date of termination of powers, may be re-elected to the specified position in this financial organization without obtaining the consent of the authorized body, provided that he meets the requirements established by this article and subparagraph 20) of Article 1 of the Law of the Republic of Kazakhstan "On Joint-Stock Companies".

13. The consent of the authorized body to the appointment (election) to the position of a managerial employee shall cease to be valid in the following cases:

1. non-appointment (non-election) of an agreed candidate for the position of a managerial employee within the time limits established by paragraph 12 of this article;

2) withdrawal by the authorized body of consent to the appointment (election) to the position of a managerial employee.

14. The authorized body refuses to issue consent to the appointment (election) to the position of a managerial employee on the following grounds:

1. non-compliance of a candidate for the position of a managerial employee with the requirements established by this article, subparagraph 20) of Article 1, paragraph 4 of Article 54, paragraph 2 of Article 59 of the Law of the Republic of Kazakhstan “On Joint-Stock Companies” and Article 9 of the Law of the Republic of Kazakhstan “On Accounting and Financial Reporting”;

2) negative test result.

Negative test results are:

the test result of a candidate for a managerial position is less than seventy percent of correct answers;

violation by a candidate for the position of a managerial employee of the testing procedure determined by the authorized body;

failure to appear for testing at the appointed time before the expiration of the period for approval of the candidate for the position of a managerial employee by the authorized body;

3) failure to eliminate the comments of the authorized body or submit documents revised taking into account the comments of the authorized body after the expiration of the period established by paragraph 6 of this article and the regulatory legal act of the authorized body;

4) violation of the procedure established by the legislation of the Republic of Kazakhstan for the election (appointment) of a candidate for the position of a managerial employee;

5) submission of documents after the expiration of the period established by paragraph 6 of this article, during which the managerial employee holds his position without the consent of the authorized body;

6) availability of information from the authorized body about the commission by a candidate for the position of a managerial employee of actions recognized as committed for the purpose of manipulation in the securities market and (or) resulting in damage to a third party (third parties).

This requirement applies for one year from the date of the earliest of the following events:

recognition by the authorized body of the actions of a candidate for the position of a managerial employee as committed for the purpose of manipulating the securities market;

receipt by the authorized body of information confirming the fact of damage caused to a third party (third parties) as a result of such actions;

7) the presence of information from the authorized body that the candidate for the position of a managerial employee was a managerial employee (the person performing his duties) of a financial organization in respect of which, for the commission of actions recognized as committed for the purpose of manipulating the securities market, the authorized body applied supervisory response measures and (or) on which an administrative penalty was imposed under Article 259 of the Code of the Republic of Kazakhstan on Administrative Offenses;

8) the presence of information from the authorized body that the candidate for the position of managerial employee was a managerial employee (the person performing his duties) of a financial organization, a stock exchange trader, whose actions caused damage to the financial organization and (or) a third party (third parties) participating in the transaction;

9) the presence of information from the authorized body that the candidate for the position of managerial employee was a stock exchange trader whose competence included making decisions on issues that entailed violations specified in subparagraph 7) of this paragraph.

The requirements established by subparagraphs 7), 8) and 9) of this paragraph apply for one year from the date of the earliest of the listed events:

recognition by the authorized body of the actions of a financial organization as committed for the purpose of manipulation in the securities market;

receipt by the authorized body of information confirming damage caused to a financial organization and (or) a third party (third parties) as a result of the actions of a candidate for the position of an executive employee.

The information specified in subparagraphs 6), 7), 8) and 9) of part one of this paragraph also includes information received by the authorized body from the financial supervisory authority of the state of which the non-resident financial organization of the Republic of Kazakhstan is a resident.

15. In the event of two consecutive refusals of the authorized body to issue consent to the appointment (election) to the position of a managerial employee:

1. documents approved by a candidate for the position of a managerial employee may be re-submitted to the authorized body after twelve consecutive months from the date the authorized body made a decision on the second refusal to issue consent to his appointment (election);

2) a member of the management body of a financial organization may be elected as a managerial employee of a financial organization after twelve consecutive months from the date the authorized body made a decision on the second refusal to issue consent to his election.

16. The authorized body revokes the issued consent to the appointment (election) to the position of a managerial employee on the following grounds:

1. non-compliance of a managerial employee with the requirements established by this article, Article 16-2 of the Law of the Republic of Kazakhstan “On Insurance Activities”, subparagraph 20) of Article 1, paragraph 4 of Article 54 and paragraph 2 of Article 59 of the Law of the Republic of Kazakhstan “On Joint-Stock Companies”, Article 9 of the Law of the Republic of Kazakhstan “On Accounting and Financial Reporting” or a regulatory legal act of the authorized body;

2) identification of unreliable information on the basis of which consent was given;

3) application by the authorized body of the supervisory response measure provided for by subparagraph 11) paragraph 1 of Article 80 of the Law of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan", subparagraph 11) of paragraph 1 of Article 53-3 of the Law of the Republic of Kazakhstan "On Insurance Activities", subparagraph 10) of paragraph 1 of Article 3-5 of the Law of the Republic of Kazakhstan "On the Securities Market" and paragraph 2 of Article 3-1 of the Law of the Republic of Kazakhstan "On the Insurance Guarantee Fund payments";

4) non-fulfillment or improper fulfillment by an insurance (reinsurance) organization, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan of obligations to pay mandatory or emergency contributions, as well as initial one-time and additional contributions to the organization that guarantees the implementation of insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, two or more times during the last twelve months;

7) non-fulfillment or improper fulfillment by an insurance (reinsurance) organization, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan two or more times within a consecutive twelve months of requirements for the provision of information to the unified insurance database, including its distortion and (or) incomplete and (or) untimely provision;

8) failure to comply with the requirements established by this article.

Revocation by an authorized body of consent to the appointment (election) of a managerial employee is the basis for the revocation of previously issued consent(s) to this managerial employee in other market entities.

The powers of a managerial employee whose consent to appointment (election) to the position of a managerial employee has been revoked by the authorized body shall terminate from the moment of receipt of such revocation.

17. A market entity is obliged to terminate the employment contract with a managerial employee and (or) take other measures to terminate his powers in the event of:

1. withdrawal by the authorized body of consent to the appointment (election) to the position of a managerial employee;

2) violation of the procedure established by the legislation of the Republic of Kazakhstan for the election (appointment) of a candidate for the position of a managerial employee;

3) non-approval by the authorized body of a person recognized as a managerial employee on the basis of a reasoned judgment of the authorized body for the position of a managerial employee.

18. A market entity (with the exception of banking and insurance holding companies) notifies the authorized body in the manner established by the regulatory legal act of the authorized body about all changes related to management employees, including:

appointment (election) of a managerial employee, transfer to another position;

termination of an employment contract and (or) termination of powers of a managerial employee;

bringing a managerial employee to criminal or administrative liability for committing a corruption offense;

changing the last name, first name, patronymic (if it is indicated in the identity document) of a managerial employee.

19. The requirements of this article do not apply to executive employees of bank holding companies - non-residents of the Republic of Kazakhstan, insurance holding companies - non-residents of the Republic of Kazakhstan if one of the following conditions is met:

that the banking and insurance holdings have an individual credit rating not lower than the “A-” rating of one of the rating agencies, the list of which is established by the authorized body, as well as written confirmation from the financial supervisory authority of the state of which the banking and insurance holdings are residents that such holdings are subject to consolidated supervision;

the existence of an agreement on the exchange of information between the authorized body and the financial supervisory authority of the state of which the banking and insurance holdings are residents, as well as the presence of the banking and insurance holdings with the minimum required rating of one of the rating agencies. The minimum rating and list of rating agencies are established by the regulatory legal act of the authorized body.

20. The requirements of this article, with the exception of subparagraphs 1), 4), 5) and 7) of paragraph 2 of this article, do not apply to:

a bank holding company that indirectly owns shares of a bank and (or) derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of the bank, through ownership and (or) use, and (or) disposal of shares or participation interests in the authorized capital of a bank holding company - a resident of the Republic of Kazakhstan, directly owning shares of the specified bank and (or) derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of the specified bank;

an insurance holding company that indirectly owns shares of an insurance (reinsurance) organization and (or) derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of an insurance (reinsurance) organization, through ownership and (or) use, and (or) disposal of shares or participation interests in the authorized capital of an insurance holding company - a resident of the Republic of Kazakhstan, directly owning shares of the said insurance (reinsurance) organization and (or) derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of the specified insurance (reinsurance) organization.

Article 9-5. The procedure for issuing consent to acquire the status of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company

1. A person wishing to obtain consent to acquire the status of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company, is obliged to submit to the authorized body an application for acquiring the status of a major participant in the bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company or insurance holding company in the form established by the regulatory legal act of the authorized body, with attached documents and information specified in paragraphs 8, 9, 10, 11, 13 and 14 of this article.

2. To obtain consent to acquire the status of a major participant in a bank, insurance (reinsurance) organization, bank holding company, insurance holding company, a fee is paid, the amount and procedure for payment of which are determined by the tax legislation of the Republic of Kazakhstan.

3. The rules for issuing, revoking consent to acquire the status of a major participant in a bank, a bank holding company, a major participant in an insurance (reinsurance) organization, an insurance holding company, a major participant in an investment portfolio manager and the requirements for documents submitted to obtain said consent are determined by a regulatory legal act of the authorized body.

4. Legal entities - non-residents of the Republic of Kazakhstan can obtain the consent of the authorized body to acquire the status of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company if they or their parent organization have the minimum required rating of one of the rating agencies. The minimum rating and list of rating agencies are established by the regulatory legal act of the authorized body.

The presence of a rating specified in part one of this paragraph is not required for a legal entity - a non-resident of the Republic of Kazakhstan, intending to indirectly own, use and dispose in the aggregate of ten or more percent of the voting shares of a bank, insurance (reinsurance) organization, managing an investment portfolio, including through derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of the bank, insurance (reinsurance) organization, manager of an investment portfolio (hereinafter for the purposes of this article - shares), or indirectly influence decisions (voting) made by a bank, insurance (reinsurance) organization, manager of an investment portfolio with ten or more percent of the voting shares of a bank, insurance (reinsurance) organization, manager of an investment portfolio through ownership of voting shares (stakes in the authorized capital) of another legal entity - a non-resident of the Republic of Kazakhstan, which is a major participant in the bank or bank holding, a major participant in an insurance (reinsurance) organization or an insurance holding company, a major participant in an investment portfolio manager, directly owning and (or) using, and (or) disposing in the aggregate of ten or more percent of the shares of a bank, insurance (reinsurance) organization, managing an investment portfolio and having the minimum required rating.

5. A legal entity - a non-resident of the Republic of Kazakhstan can be a shareholder of an investment portfolio manager carrying out trust management of pension assets, if there is a minimum required rating from one of the rating agencies. The minimum required rating and the list of rating agencies are established by the regulatory legal act of the authorized body.

The share of ownership of an individual non-resident of the Republic of Kazakhstan in the shares of an investment portfolio manager carrying out trust management of pension assets cannot exceed ten percent of the total number of voting shares of the investment portfolio manager carrying out trust management of pension assets.

6. A bank holding company - a non-resident of the Republic of Kazakhstan, an insurance holding company - a non-resident of the Republic of Kazakhstan, directly owning and (or) using, and (or) disposing of twenty-five or more percent of the shares of a bank, insurance (reinsurance) organization, can only be a financial organization - a non-resident of the Republic of Kazakhstan, subject to the following conditions:

1. a financial organization that is a non-resident of the Republic of Kazakhstan has a valid license (permit) to carry out financial activities under the laws of the state of which it is a resident, in cases where such a license (permission) is required by the legislation of such a state;

2) the presence of consent (permission) to own shares of a bank, insurance (reinsurance) organization operating in the territory of the Republic of Kazakhstan, issued by the financial supervisory authority of the state whose resident is a financial organization - a non-resident of the Republic of Kazakhstan, in cases where such consent (permission) is required by the legislation of such state;

3) a financial organization - a non-resident of the Republic of Kazakhstan or its parent organization has the minimum required rating of one of the rating agencies, the list of which is established by the regulatory legal act of the authorized body;

4) a financial organization that is a non-resident of the Republic of Kazakhstan is subject to consolidated supervision in the state of which it is a resident.

7. Major participants in a bank, insurance (reinsurance) organization, managing an investment portfolio - individuals pay for shares of the bank, insurance (reinsurance) organization, managing an investment portfolio in an amount not exceeding the value of the property owned by them. In this case, the value of the property (minus the value of previously acquired shares of the bank, insurance (reinsurance) organization managing the investment portfolio) must be no less than the total value of previously acquired and acquired shares of the bank, insurance (reinsurance) organization managing the investment portfolio.

Sources of funds used to purchase shares of a bank, insurance (reinsurance) organization managing an investment portfolio may be money in the applicant’s bank account received by the applicant:

1. for an individual:

as income from entrepreneurial, labor and (or) other activities not prohibited by the legislation of the Republic of Kazakhstan or the legislation of a foreign state;

in the form of a donation, inheritance, winnings and (or) from the sale of property received free of charge, property received as an inheritance - in an amount not exceeding twenty-five percent of the value of the acquired shares of a bank, insurance (reinsurance) organization managing an investment portfolio;

2) for a legal entity:

as income, receipts from business and (or) other activities not prohibited by the legislation of the Republic of Kazakhstan or the legislation of a foreign state;

in the form of a contribution to the authorized capital of the applicant.

For a legal entity that is a financial organization, the sources of funds used to acquire shares of a bank, insurance (reinsurance) organization managing an investment portfolio may be the assets of a financial organization, provided that the acquisition of shares of a bank, insurance (reinsurance) organization, managing an investment portfolio will not lead to a violation by the financial organization of capital adequacy ratios, liquidity ratios or other standards (limits) established by the legislation of the state of which the financial organization is a resident.

8. To obtain consent to acquire the status of a major participant in a bank, insurance (reinsurance) organization, or investment portfolio manager, an individual submits the following documents and information:

1. copies of documents confirming the conditions and procedure for acquiring shares of a bank, insurance (reinsurance) organization managing an investment portfolio;

2) information about the sources (origin) of funds used to purchase shares of a bank, insurance (reinsurance) organization managing an investment portfolio, as well as copies of documents confirming this information.

In case of acquisition of shares of a bank, insurance (reinsurance) organization that manages an investment portfolio by an individual at the expense of funds received in the form of a gift, income from the sale of property received free of charge, the applicant also provides information about the donor and the sources of origin of these funds and property from the donor;

3) information on legal entities in which the applicant is a major participant, in the form established by the regulatory legal act of the authorized body. If the applicant is a major participant in a legal entity - a non-resident of the Republic of Kazakhstan, additionally provided copies of documents confirming the applicant's major participation in a legal entity - a non-resident of the Republic of Kazakhstan;

4) a recapitalization plan for a bank, insurance (reinsurance) organization managing an investment portfolio in cases of possible deterioration in the financial position of the bank, insurance (reinsurance) organization managing an investment portfolio;

5) information about income and property, information about existing debt for all obligations of the applicant in the form established by the regulatory legal act of the authorized body.

An individual resident of the Republic of Kazakhstan also submits a copy of the declaration of assets and liabilities, drawn up in the manner established by the tax legislation of the Republic of Kazakhstan, as of a date no earlier than thirty calendar days preceding the date of submission to the authorized body of an application for acquiring the status of a major participant in a bank, insurance (reinsurance) organization, manager of an investment portfolio, with a mark from the tax authority on acceptance.

The specified information is accompanied by documents necessary to analyze the financial situation of the applicant, as well as documents confirming the value of the property determined by the appraiser during the last six months preceding the date of filing the application;

6) information about the applicant in the form established by the regulatory legal acts of the authorized body, including information about work activity and impeccable business reputation.

Individuals - non-residents of the Republic of Kazakhstan, in confirmation of their impeccable business reputation, submit documents confirming the absence of an unexpunged or outstanding criminal record, issued by the competent government agency of the country of their citizenship and the country of their permanent residence, and stateless persons - the country of their permanent residence (the date of issue of these documents cannot be more than six months preceding the date of filing the application);

7) a copy of the document confirming payment of the fee for issuing consent.

The document provided for in paragraph one of this subclause is not submitted in the following cases:

payments through the "electronic government" payment gateway;

obtaining consent to acquire the status of a major participant in an investment portfolio manager.

9. If an individual or legal entity begins to meet the characteristics of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company without obtaining the prior written consent of the authorized body on the basis of a gift agreement, trust management agreement or as a result of accepting an inheritance, when submitting an application for acquiring the corresponding status, the following shall be additionally submitted:

1. copies of documents confirming the conditions and procedure for donation, trust management, inheritance in relation to shares of a bank, insurance (reinsurance) organization, investment portfolio manager;

2) documents provided for in subparagraphs 3), 4), 5), 6) and 7) of paragraph 8 of this article;

3) documents provided for in subparagraph 7) of paragraph 10 of this article - if the applicant is a legal entity;

4) the document provided for in subparagraph 3) of paragraph 11 of this article - if the applicant is a non-resident legal entity of the Republic of Kazakhstan;

5) information on the value of shares that are the subject of a gift agreement, trust management agreement, inheritance, determined by the appraiser in accordance with the legislation of the Republic of Kazakhstan, with copies of supporting documents attached.

The applicant who has received the ownership of shares of a bank, insurance (reinsurance) organization managing an investment portfolio as a result of a gift or inheritance, in order to obtain consent to acquire the status of a major participant in the bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company must be the owner of the property, the market value of which, minus the value of previously received (acquired) shares of the bank, insurance (reinsurance) organization managing the investment portfolio must be no less than the amount of financial investments that may be required from the applicant to restore the financial position of the bank, insurance (reinsurance) organization managing the investment portfolio in accordance with the bank recapitalization plan, insurance (reinsurance) organization managing the investment portfolio.

If a person begins to meet the characteristics of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company without obtaining the prior written consent of the authorized body, he does not have the right to take any actions aimed at influencing the management and (or) strategy (policy) of the bank, insurance (reinsurance) organization, investment portfolio manager, and (or) vote on such shares until until it receives the written consent of the authorized body in accordance with the provisions of this article.

In this case, a person corresponding to the characteristics of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company, is obliged to notify the authorized body within ten calendar days from the moment it became aware that it corresponds to the characteristics of a major participant in the bank of an insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company.

An application for acquiring the appropriate status is submitted to the authorized body within thirty calendar days from the moment it became known that it corresponds to the characteristics of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company, unless this person intends to alienate shares within the specified period. Information on the adoption of a decision on the alienation of shares is provided to the authorized body immediately from the date of such decision.

In case of refusal by the authorized body to issue consent to a person who meets the characteristics of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company, such person is obliged, within six months from the date of receipt of written notification, to reduce the number of shares owned by him in the bank of the insurance (reinsurance) organization, investment portfolio manager to the level at which the person ceases to meet such characteristics.

10. To obtain consent to acquire the status of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company, a legal entity - a resident of the Republic of Kazakhstan submits the following documents and information:

1. a copy of the decision of the relevant body of the applicant on the acquisition of shares of a bank, insurance (reinsurance) organization managing an investment portfolio (if there is no decision on the Internet resource of the financial reporting depository);

2) information about persons who directly or indirectly own ten or more percent of the shares (stakes in the authorized capital) of the applicant, and persons exercising control over the applicant, provided for by the regulatory legal act of the authorized body, as well as copies of documents confirming this information;

3) a list of affiliated persons of the applicant (if there is no list on the Internet resource of the financial reporting depository);

4) documents and information specified in subparagraphs 1), 3), 4) and 7) of paragraph 8 of this article;

5) brief information about the applicant’s management employees in the form prescribed by the regulatory legal act of the authorized body, including information about work activity and impeccable business reputation.

For the applicant's executive employees who are non-residents of the Republic of Kazakhstan, the applicant, in confirmation of their impeccable business reputation, submits documents confirming the absence of an unexpunged or outstanding criminal record, issued by the competent government agency of the country of their citizenship and the country of their permanent residence, and for stateless persons - the country of their permanent residence (the date of issue of these documents cannot be more than six months preceding the date of filing the application);

6) copies of the applicant’s annual financial statements (consolidated financial statements if the applicant has subsidiaries) for the last two financial years, confirmed by audit reports, as well as a copy of the applicant’s financial statements for the last completed quarter before submitting the application.

If there is no audit report confirming the financial statements for the last completed financial year during the period from January 1 to June 1 of the current year, the applicant submits copies of financial statements (consolidated financial statements if the applicant has subsidiaries) for the last completed financial year and the last completed quarter before filing the application, as well as copies of annual financial statements (consolidated financial statements if the applicant has subsidiaries), confirmed by audit reports, for the two years preceding the last completed financial year.

Financial statements specified in this subclause are not presented in the following cases:

posting these financial statements on the Internet resource of the financial statements depository;

if the applicant has been registered as a legal entity for less than one year and its major participant is a person who has the status of a major participant in the financial organization, the application for acquiring the status of a major participant of which was submitted by the applicant;

7) copies of documents confirming the person’s authority to submit an application and documents attached to it.

11. To obtain consent to acquire the status of a major participant in a bank, insurance (reinsurance) organization, manager of the investment portfolio of a bank holding company, insurance holding company, a legal entity - non-resident of the Republic of Kazakhstan submits the following documents and information:

1. documents and information specified in paragraph 10 of this article;

2) notarized copies of constituent documents;

3) a copy of the consent (permission) to own shares of a bank, insurance (reinsurance) organization, manager of an investment portfolio, operating in the territory of the Republic of Kazakhstan, issued by the competent state body (financial supervisory authority) of the state of which the applicant is a resident, or a copy of confirmation from the competent state body (financial supervisory authority) of the state of which the applicant is a resident that such consent (permission) is not required;

4) a copy of the license (permit) for the applicant to carry out financial activities under the laws of the state of which the applicant is a resident, or a copy of a confirmation issued by the financial supervisory authority of the state of which the applicant is a resident stating that a license (permission) is not required - if the applicant is a non-resident financial organization of the Republic of Kazakhstan.

Advertisement an applicant who is a non-resident legal entity of the Republic of Kazakhstan, subject to one of the following conditions:

1. the applicant has a credit rating of at least “A-” from one of the rating agencies, the list of which is established by the regulatory legal act of the authorized body;

2) availability of information about legal entities - non-residents of the Republic of Kazakhstan, in which the applicant is a major participant, about major participants of the applicant, as well as about persons exercising control over the applicant, on the Internet resource of the financial supervisory authority of the state of which the applicant is a resident.

For the purposes of subparagraph 5) of paragraph 10 of this article, the management employees of a legal entity - a non-resident of the Republic of Kazakhstan (financial organization - a non-resident of the Republic of Kazakhstan) are recognized as the head of the management body, his deputy and members of the management body, the head of the executive body, his deputy and members of the executive body, the chief accountant.

In relation to the management employees of the applicant financial organization - non-resident of the Republic of Kazakhstan, who are non-residents of the Republic of Kazakhstan, the applicant, for the purposes of subparagraph 5) of paragraph 10 of this article, provides information confirming their impeccable business reputation in the form provided for by the regulatory legal act of the authorized body.

The financial statements specified in subparagraph 6) of paragraph 10 of this article are not submitted in cases where the applicant is a financial organization - a non-resident of the Republic of Kazakhstan and these financial statements are posted and available in Kazakh, Russian or English on the Internet resource of a financial organization - a non-resident of the Republic of Kazakhstan or a foreign stock exchange.

13. To obtain consent to acquire the status of a bank holding company by a non-resident bank of the Republic of Kazakhstan, an insurance holding company by an insurance organization - a non-resident of the Republic of Kazakhstan, if the bank - non-resident of the Republic of Kazakhstan, insurance company - non-resident of the Republic of Kazakhstan has a credit rating of at least "A-" from one of the rating agencies, the list of which is established by the regulatory legal act of the authorized body, the applicant submits the documents and information specified in subparagraphs 4) and 7) of paragraph 8, subparagraphs 1), 2), 6) and 7) of paragraph 10 and subparagraphs 3) and 4) of paragraph 11 of this article.

14. Individuals wishing to acquire the status of a major participant in a bank, insurance (reinsurance) organization managing an investment portfolio when purchasing shares with an ownership stake of twenty-five percent or more of voting shares, as well as legal entities wishing to acquire the status of a bank holding company, insurance holding company, in addition to the documents and information specified in this article, submit a business plan, the requirements for which are established by the authorized body, for the next five years.

15. A decision on an application submitted to obtain the status of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company in accordance with the requirements of this article must be made by the authorized body within fifty working days after filing the application.

The authorized body shall suspend the period for consideration of documents submitted to obtain the status of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company, when the authorized body forms a reasoned judgment in relation to the applicant in accordance with Article 13-5 of this Law. This period is suspended from the moment the draft motivated judgment is sent to the person who submitted documents to obtain the status of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company until the date the authorized body accepts the motivated judgment.

An application for acquiring the status of a major participant in a bank, insurance (reinsurance) organization, bank holding company, insurance holding company, submitted as part of obtaining permission to open a bank, insurance (reinsurance) organization, is considered by the authorized body within the time limits established for consideration of the application for permission to open a bank, insurance (reinsurance) organization.

An application for acquiring the status of a major participant in a bank or a bank holding company, submitted as part of obtaining permission for the voluntary reorganization of a microfinance organization in the form of conversion into a bank, is considered by the authorized body within the time limits established for consideration of the application for permission to issue a permit for the voluntary reorganization of a microfinance organization in the form of conversion into a bank.

The authorized body is obliged to notify the applicant in writing of the results of its decision, and in case of refusal to issue consent to acquire the corresponding status, the reasons for the refusal are indicated in the written notification.

The authorized body, when issuing consent to a bank to acquire the status of a major participant, a bank holding company of another bank, an insurance (reinsurance) organization to acquire the status of a major participant, an insurance holding company of another insurance (reinsurance) organization, simultaneously issues permission for a significant participation in the capital of the bank, insurance (reinsurance) organization or the creation (acquisition) of a subsidiary bank, a subsidiary insurance (reinsurance) organization upon receipt by the applicant of the appropriate permission.

16. Refusal to issue consent by the authorized body to persons wishing to become a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company, is made on any of the following grounds:

1. failure to comply with the requirements established by subparagraphs 4), 5), 6) and 7) of paragraph 2 of Article 9-4 of this Law (in relation to an individual or senior employees of the applicant - a legal entity);

2) the unstable financial situation of the applicant.

An unstable financial situation of an applicant is defined as the presence of one of the following characteristics:

the applicant is a legal entity created less than two years before the date of filing the application, except for cases where a major participant of the applicant is a person who has the status of a major participant of the financial organization, the application for acquiring the status of a major participant of which was submitted by the applicant;

the applicant's liabilities exceed its assets minus the amount of assets placed in shares and participation interests in the authorized capital of other legal entities, and shares of a bank, insurance (reinsurance) organization that manages the investment portfolio intended for acquisition;

losses based on the results of each of the two completed financial years;

the size of the applicant’s obligations poses a significant risk to the financial condition of the bank, insurance (reinsurance) organization managing the investment portfolio;

the presence of overdue and (or) off-balance sheet debt of the bank, insurance (reinsurance) organization managing the investment portfolio of the applicant’s debt to the bank, insurance (reinsurance) organization managing the investment portfolio;

analysis of the financial consequences of the applicant acquiring the status of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company assumes a deterioration in the financial condition of the applicant;

the value of the applicant’s property (minus the applicant’s liabilities) is insufficient to purchase shares of a bank, insurance (reinsurance) organization managing an investment portfolio;

other grounds identified using a reasoned judgment, indicating the existence of an unstable financial position of the applicant and (or) the possibility of causing damage to the bank and (or) its depositors, an insurance (reinsurance) organization and (or) its clients, an investment portfolio manager and (or) investors of a voluntary savings pension fund;

3) non-compliance of the submitted documents with the requirements of this article or failure to eliminate the comments of the authorized body on the submitted documents;

4) violation, as a result of the applicant’s acquisition of the status of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company, of the requirements of the legislation of the Republic of Kazakhstan in the field of competition protection;

5) cases when the person acquiring the status of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company is a legal entity registered in offshore zones, the list of which is established by the authorized body, except for the cases provided for in paragraph 4 of Article 9 of the Law of the Republic of Kazakhstan “On Banks and Banking Activities in the Republic of Kazakhstan”;

6) failure by the applicant to comply with the requirement provided for in part three of paragraph 3 of Article 6 of the Law of the Republic of Kazakhstan “On Banks and Banking Activities in the Republic of Kazakhstan”, as well as other requirements established by the legislative acts of the Republic of Kazakhstan for major participants of the bank, insurance (reinsurance) organization, investment portfolio manager, bank holding companies, insurance holding companies;

7) analysis of the financial consequences of the applicant acquiring the status of a major participant in a bank, insurance (reinsurance) organization managing an investment portfolio, bank holding company, insurance holding company assumes a deterioration in the financial condition of the bank, insurance (reinsurance) organization managing an investment portfolio, respectively;

8) the applicant-financial organization - a non-resident of the Republic of Kazakhstan does not have a license (permit) to carry out financial activities under the laws of the state of which he is a resident, in cases where such a license (permission) is required by the legislation of such a state;

9) the applicant - a legal entity - non-resident of the Republic of Kazakhstan or its parent organization does not have the minimum required rating of one of the rating agencies, the list of which is determined by the authorized body, except for the cases provided for in paragraph 4 of this article;

10) ineffectiveness of the presented recapitalization plan for the bank, insurance (reinsurance) organization managing the investment portfolio in the event of a possible deterioration in the financial condition of the bank, insurance (reinsurance) organization managing the investment portfolio;

11) the absence of an impeccable business reputation of the applicant - an individual, the managerial employee of the applicant - a legal entity;

12) cases where a person previously was or is a major participant - an individual or the first manager of a major participant - a legal entity and (or) a senior employee of a financial organization, including a financial organization - a non-resident of the Republic of Kazakhstan, in the period no more than one year before the adoption by the authorized body or financial supervisory body of the state of which the financial organization - a non-resident of the Republic of Kazakhstan is a resident, of a decision to apply a settlement regime to the bank, a decision to deprive the license of a financial organization, including a financial organization - a non-resident of the Republic of Kazakhstan, resulting in their liquidation and (or) termination of activities in the financial market, or the entry into force of a judicial act on the forced liquidation of a financial organization, including a non-resident financial organization of the Republic of Kazakhstan, or declaring it bankrupt in the manner established by the legislation of the Republic of Kazakhstan or the legislation of the state of which the non-resident financial organization of the Republic of Kazakhstan is a resident.

This requirement applies within ten years after the adoption by the authorized body or the financial supervisory body of the state whose resident financial organization is a non-resident of the Republic of Kazakhstan, a decision to apply a settlement regime to a bank, a decision to revoke the license of a financial organization, including a financial organization that is a non-resident of the Republic of Kazakhstan, resulting in their liquidation and (or) termination of activities in the financial market, or the entry into force of a judicial act on the forced liquidation of a financial organization, including a financial organization that is a non-resident of the Republic Kazakhstan, or declaring it bankrupt in the manner established by the legislation of the Republic of Kazakhstan or the legislation of the state of which the financial organization is a resident - a non-resident of the Republic of Kazakhstan.

For the purposes of this subclause, a financial organization also means a branch of a bank - a non-resident of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, a branch of an insurance broker - a non-resident of the Republic of Kazakhstan;

13) non-compliance of a financial organization - a non-resident of the Republic of Kazakhstan, wishing to acquire the status of a bank holding company, insurance holding company, with the requirements provided for in paragraph 6 of this article;

14) cases when the applicant - a financial organization - non-resident of the Republic of Kazakhstan is not subject to supervision on a consolidated basis in the country of its location;

15) the impossibility of conducting consolidated supervision of a banking conglomerate due to the fact that the legislation of the countries of location of the participants of the banking conglomerate - non-residents of the Republic of Kazakhstan makes it impossible for them and the banking conglomerate to fulfill the requirements stipulated by the laws of the Republic of Kazakhstan;

16) existence of grounds for refusal to issue permission to open a bank or insurance (reinsurance) organization.

If a bank, insurance (reinsurance) organization wishes to acquire the status of a major participant in another bank, insurance (reinsurance) organization, bank holding company, insurance holding company for the creation, acquisition of a subsidiary bank, subsidiary insurance (reinsurance) organization or acquisition of a significant participation in the authorized capital of the bank, insurance (reinsurance) organization, the authorized body, when considering the submitted documents, takes into account the grounds for refusal provided for in paragraph 3 of Article 9-6 of this Law. If there are grounds for refusing to issue permission to create, acquire a subsidiary, or have a significant participation in the capital of an organization, the authorized body refuses to issue consent to acquire the status of a major participant in a bank, insurance (reinsurance) organization, bank holding company, insurance holding company;

17) the presence of an unexpunged or outstanding conviction for crimes in the field of legalization (laundering) of proceeds from crime, financing of terrorism and financing of the proliferation of weapons of mass destruction.

17. The authorized body has the right to withdraw consent to acquire the status of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company in the following cases:

1. identification of false information on the basis of which consent was given;

2) identification of a violation as a result of the applicant acquiring the status of a major participant, bank holding company, insurance holding company of the requirements of the legislation of the Republic of Kazakhstan in the field of protection of competition;

3) failure by major participants of a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company to comply with the requirements of this Law;

4) the absence of a major participant - a non-resident of the Republic of Kazakhstan, a bank, an insurance (reinsurance) organization, an investment portfolio manager, a bank holding company - a non-resident of the Republic of Kazakhstan, an insurance holding company - a non-resident of the Republic of Kazakhstan, of the minimum required rating of one of the rating agencies, the list of which is determined by the authorized body.

When withdrawing consent to acquire the status of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company, the authorized body makes a decision to cancel the previously issued consent within two months from the date of discovery of the fact that is the basis for the withdrawal of consent.

In case of withdrawal of consent, the person to whom such a measure is applied is obliged, within six months from the date of withdrawal of such consent, to reduce the number of shares owned by him in a bank, insurance (reinsurance) organization, managing an investment portfolio to a level that does not require obtaining the consent of the authorized body to acquire the status of a major participant, and submit supporting documents to the authorized body.

A person whose consent issued in accordance with this article has been revoked does not have the right to transfer shares of a bank, insurance (reinsurance) organization managing an investment portfolio to another person for trust management.

In the event of non-compliance by persons in respect of whom the authorized body has made a decision to revoke the relevant consent, the requirements of this paragraph, the authorized body has the right to go to court for these persons to fulfill the requirements of the authorized body.

18. A major participant in a bank, insurance (reinsurance) organization managing an investment portfolio, a bank holding company, an insurance holding company is obliged to notify the authorized body within thirty calendar days from the date of change in the percentage ratio of the number of shares of the bank, insurance (reinsurance) organization managing an investment portfolio owned by it to the number of voting shares of the bank, insurance (reinsurance) organization managing an investment portfolio, which it owns directly and (or) indirectly, with the presentation of supporting documents, except for cases when such a change occurs as a result of the repurchase of its own shares by a bank, insurance (reinsurance) organization, investment portfolio manager or bank holding company, insurance holding company from other shareholders.

In the event of a change in the number of shares of a bank, insurance (reinsurance) organization managing an investment portfolio (in percentage or absolute value) belonging to a major participant in the bank, insurance (reinsurance) organization managing an investment portfolio, bank holding company, insurance holding company, the number of voting shares of the bank, insurance (reinsurance) organization managing an investment portfolio increases in the direction of increase of a major participant in the bank, insurance (reinsurance) an organization managing an investment portfolio, a bank holding company, an insurance holding company must submit to the authorized body information about the sources (origin) of funds that were used to purchase shares of the bank, insurance (reinsurance) organization managing the investment portfolio, with copies of documents confirming this information attached. Sources of funds that can be used by large participants of a bank, insurance (reinsurance) organization, managing an investment portfolio - individuals for the additional acquisition of shares of the bank, insurance (reinsurance) organization, managing an investment portfolio, are indicated in paragraph 7 of this article.

In the event of a change in the percentage of the number of shares of a bank, insurance (reinsurance) organization managing an investment portfolio to less than ten or twenty-five percent owned by a major participant in the bank, insurance (reinsurance) organization managing an investment portfolio, bank holding company, insurance holding company, to the number of voting shares of the bank, insurance (reinsurance) organization managing the investment portfolio at the request of a major participant in the bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company, or in case of independent discovery by the authorized body of the facts that are the basis for the cancellation of the issued consent, the previously issued written consent of the authorized body is considered canceled from the day following the day the authorized body receives the specified application or the authorized body discovers the facts that are the basis for the cancellation of the issued consent.

A major participant in a bank, insurance (reinsurance) organization managing an investment portfolio, who is an individual, in the event of an increase in the number of shares owned by him to twenty-five or more percent of the voting shares of the bank, insurance (reinsurance) organization managing an investment portfolio, in addition to the documents and terms specified in this paragraph, submits a business plan, the requirements for which are established by the authorized body, for the next five years.

19. The requirements for obtaining the status of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company do not apply to:

Government of the Republic of Kazakhstan;

national management holding;

a unified pension savings fund that manages an investment portfolio, owning voting shares and (or) derivative securities of a bank, insurance (reinsurance) organization that manages an investment portfolio, at the expense of pension assets;

a person performing the functions of a nominal holder of voting shares and (or) derivative securities of a bank, insurance (reinsurance) organization, investment portfolio manager, as well as the issuer of these derivative securities;

a person recognized as indirectly owning (having the ability to vote, determine decisions and (or) influence decisions made by virtue of an agreement or otherwise) shares and (or) derivative securities of a bank, insurance (reinsurance) organization managing an investment portfolio through ownership (having the ability to vote, determine decisions and (or) influence decisions made by virtue of an agreement or otherwise) shares of another financial organization that has the status of a major participant (banking holding company, insurance holding company) of the specified bank, insurance (reinsurance) organization managing the investment portfolio;

a non-resident person of the Republic of Kazakhstan who indirectly owns (has the ability to vote, determine decisions and (or) influence decisions made by virtue of an agreement or otherwise) shares and (or) derivative securities of a bank, insurance (reinsurance) organization managing an investment portfolio through ownership (has the ability to vote, determine decisions and (or) influence decisions made by virtue of an agreement or otherwise) shares of another financial organization - a non-resident of the Republic of Kazakhstan, which is subject to consolidated supervision in the country of its location and has the status of a major participant (bank holding company, insurance holding company) of the specified bank, insurance (reinsurance) organization managing the investment portfolio.

20. The requirements of this article regarding the presence of the minimum required rating of one of the rating agencies and an agreement on the exchange of information between the authorized body and the financial supervisory body of the state of which the financial organization - non-resident of the Republic of Kazakhstan is a resident, do not apply to cases of acquisition by the applicant - financial organization - non-resident of the Republic of Kazakhstan of one hundred percent of the shares of a bank - resident of the Republic of Kazakhstan from a national management holding company.

Article 9-6. The procedure for issuing a permit to a bank, insurance (reinsurance) organization to create or acquire a subsidiary, for a significant participation of the bank, insurance (reinsurance) organization in the capital of the organization

1. A bank, insurance (reinsurance) organization has the right to create or acquire a subsidiary, as well as have a significant participation in the capital of the organization in accordance with the list established by paragraph 2 of Article 23 of the Law of the Republic of Kazakhstan “On Banks and Banking Activities in the Republic of Kazakhstan” and Article 48 of the Law of the Republic of Kazakhstan “On Insurance Activities”, only with the prior permission of the authorized body.

For the issuance of a permit for the creation, acquisition of a subsidiary organization and (or) for a significant participation in the capital of organizations, a fee is charged, the amount and procedure for payment of which are determined by the tax legislation of the Republic of Kazakhstan.

2. An application from a bank, insurance (reinsurance) organization for permission to create or acquire a subsidiary is submitted in the form established by the regulatory legal act of the authorized body, with the following documents attached:

1. decisions on the creation of either a constituent agreement and a draft charter - in the case of creating a subsidiary organization;

2) decisions on the acquisition of a subsidiary organization and the charter - in case of acquisition of a subsidiary organization;

3) a business plan of a subsidiary organization, the requirements for which are determined by the regulatory legal act of the authorized body;

4) financial statements of the acquired subsidiary, confirmed by an audit report, for the last completed financial year, as well as financial statements of the acquired subsidiary for the last completed quarter before filing the application.

If there is no audit report confirming the financial statements for the last completed financial year during the period from January 1 to June 1 of the current year, copies of the financial statements for the last completed financial year and the last completed quarter before filing the application, as well as the annual financial statements confirmed by the auditor's report for the year preceding the last completed financial year, are submitted.

If the acquired subsidiary has been in business for less than a year, financial statements are presented for the last completed quarter before the application is submitted;

5) a document confirming payment of the fee for issuing the permit, except for cases of payment through the “electronic government” payment gateway;

6) copies of documents confirming the person’s authority to submit an application and documents attached to it;

7) other documents on the basis of which it is intended to acquire control or confirming control over the subsidiary, indicating the basis for the emergence of control.

The documents specified in subparagraphs 1), 2) or 4) of this paragraph are not submitted if they are available on the Internet resource of the financial reporting depository.

3. Refusal to issue permission to create or acquire a subsidiary organization is made on any of the following grounds:

1. failure to eliminate the comments of the authorized body on the submitted documents within the period established by the authorized body;

2) failure to comply with prudential standards and limits by a bank, insurance (reinsurance) organization as a result of the alleged presence of a subsidiary of the bank, insurance (reinsurance) organization;

3) analysis of financial consequences, suggesting a deterioration in the financial condition of a bank, banking conglomerate, insurance (reinsurance) organization, insurance group due to the activities of a subsidiary or investments planned by the bank, insurance (reinsurance) organization;

4) failure of the acquired subsidiary to comply with established prudential standards and limits in cases provided for by the legislation of the state of which the acquired subsidiary is a resident, during the last three months preceding the date of submission of the application to the authorized body for a permit, and (or) during the period of consideration of the application;

5) the presence of the bank, insurance (reinsurance) organization and (or) subsidiary intended for acquisition of existing supervisory response measures provided for in subparagraphs 2), 3), 4), 5), 8) and 13) of paragraph 1 of Article 80, Article 81 of the Law of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan", subparagraphs 2), 3), 4), 5) and 8) of paragraph 1 of the article 53-3 of the Law of the Republic of Kazakhstan “On Insurance Activities”, and (or) administrative penalties for administrative offenses provided for in parts six and eight of Article 213, articles 227, 229, 230 and part four of Article 239 of the Code of the Republic of Kazakhstan on Administrative Offences, on the date of filing the application and (or) during the period of consideration of documents;

6) in cases of creation or acquisition by a bank, insurance (reinsurance) organization of a subsidiary organization - a bank, insurance (reinsurance) organization managing an investment portfolio - residents of the Republic of Kazakhstan - non-compliance with the requirements provided for by this Law, as well as the laws of the Republic of Kazakhstan "On banks and banking activities in the Republic of Kazakhstan", "On insurance activities", "On the securities market", regarding the issuance of consent to acquire the status of a bank holding company, insurance a holding company, a major participant in a bank, an insurance (reinsurance) organization, an investment portfolio manager - residents of the Republic of Kazakhstan;

7) failure by the bank, insurance (reinsurance) organization to comply with the requirements established by Articles 23 and 50 of the Law of the Republic of Kazakhstan “On Banks and Banking Activities in the Republic of Kazakhstan”, Articles 15-1 and 48 of the Law of the Republic of Kazakhstan “On Insurance Activities”, in relation to the creation of subsidiaries of the bank, subsidiaries of insurance (reinsurance) organizations, acquisition by banks, insurance (reinsurance) organization of shares, participation interests, shares or other forms of equity participation in the capital of organizations.

4. An application from a bank, insurance (reinsurance) organization for permission to have a significant participation in the capital of organizations is submitted in the form established by the regulatory legal act of the authorized body, with the attachment of documents provided for in subparagraphs 2), 3), 4), 5) and 6) of paragraph 2 of this article.

Refusal to issue a permit for significant participation in the capital of organizations is made on the grounds provided for in paragraph 3 of this article.

5. The authorized body issues a permit or refuses to issue a permit within fifty working days after submitting the application.

In case of refusal to issue a permit, the authorized body is obliged to notify the applicant in writing of the reasons for the refusal.

If a bank creates another bank or the bank acquires a significant participation in the capital of another bank, an application for permission to create a subsidiary organization or a significant participation in the capital of an organization, submitted as part of obtaining permission to open a bank or for the voluntary reorganization of a microfinance organization in the form of conversion into a bank, is considered by the authorized body within the time limits established for consideration of applications for the issuance of these permissions.

6. The issuance of permission to a bank, insurance (reinsurance organization) to create or acquire a subsidiary, for a significant participation in the capital of the organization is carried out in the manner determined by the regulatory legal act of the authorized body.

The procedure for revocation and (or) cancellation of permission to create, acquire a subsidiary organization, significant participation in the capital of organizations is established by a regulatory legal act of the authorized body.

7. A previously issued permit for the creation, acquisition of a subsidiary, or significant participation in the capital of an organization is canceled in the following cases:

1. revocation of permission to create, acquire a subsidiary organization, significant participation in the capital of the organization if:

identifying inaccurate information on the basis of which the permit was issued;

failure by the bank to comply with the requirements of the legislation of the Republic of Kazakhstan related to the activities of the bank's subsidiary, which led to a violation of the bank's equity adequacy ratio;

identifying non-compliance of the activities of a subsidiary of a bank, insurance (reinsurance) organization, as well as an organization in which a bank, insurance (reinsurance) organization has a significant participation in the capital, with the requirements of paragraph 2 of Article 23 of the Law of the Republic of Kazakhstan “On Banks and Banking Activities in the Republic of Kazakhstan”, paragraph 3 of Article 48 of the Law of the Republic of Kazakhstan “On Insurance Activities”;

2) termination of the activities of a subsidiary of a bank, insurance (reinsurance) organization or an organization in which the bank, insurance (reinsurance) organization has a significant stake in the capital, through reorganization (in the form of merger, accession) or liquidation;

3) the bank, insurance (reinsurance) organization does not have signs of control over the subsidiary;

4) the absence of signs of a significant participation in the capital of the organization by the bank or insurance (reinsurance) organization.

8. The permission issued by the authorized body for the creation, acquisition of a subsidiary, significant participation in the capital of the organization is considered canceled from the day following the day the authorized body receives an application from a bank, insurance (reinsurance) organization with the attachment of supporting documents on the cancellation of a previously issued permit on the grounds provided for in subparagraphs 2), 3) and 4) of paragraph 7 of this article, or the day the authorized body discovers the facts that are the basis for canceling the issued permit.

9. When revoking permission to create, acquire a subsidiary organization, significant participation in the capital of an organization on the grounds specified in subparagraph 1) of paragraph 7 of this article, the authorized body makes a decision within two months from the date of discovery of the fact that is the basis for revocation of the permission.

In case of revocation of the permission to create, acquire a subsidiary organization, significant participation in the capital of the organization, the bank, insurance (reinsurance) organization is obliged, within six months from the date of revocation of such permission, to alienate their shares, participation interests, shares or other forms of equity participation in the capital of these organizations to persons not connected with this bank, this insurance (reinsurance) organization by special relations, and submit supporting documents to the authorized body.

10. If a bank, insurance (reinsurance) organization, wishing to acquire the status of a major participant in the bank, insurance (reinsurance) organization, bank holding company, insurance holding company, creates or acquires a subsidiary bank, subsidiary insurance (reinsurance) organization or acquires a significant participation in the capital of the bank, insurance (reinsurance) organization, permission to create, acquire a subsidiary or significant participation in the capital is issued by the authorized body bank, insurance (reinsurance) organization simultaneously with the issuance of a document containing the consent of the authorized body to acquire the status of a major participant in the bank, insurance (reinsurance) organization, bank holding company, insurance holding company, without submitting the documents provided for in this article, with the exception of an application for permission to create, acquire a subsidiary or significant participation in the capital of the organization and a document confirming payment of the fee for issuing the permit.

A document confirming payment of the fee for issuing a permit, provided for in part one of this paragraph, is not presented if this fee is paid through the “electronic government” payment gateway.

11. The requirements of this article do not apply to:

1. cases of creation (acquisition) by a bank of a subsidiary organization on the terms provided for in Article 30 of the Law of the Republic of Kazakhstan “On Banks and Banking Activities in the Republic of Kazakhstan”;

2) cases of acquisition by a bank of shares of another bank or shares and participation interests in the authorized capital of legal entities owned by another bank when they carry out reorganization in the form of merger in the manner determined by the legislation of the Republic of Kazakhstan.

Article 9-7. Publication of the main performance indicators of a bank, a branch of a non-resident bank, a bank holding company, an insurance (reinsurance) company, an insurance broker, an insurance holding company, a branch of an insurance (reinsurance) company - a non-resident of the Republic of Kazakhstan, a branch of an insurance broker - a non-resident of the Republic of Kazakhstan

1. A bank, insurance (reinsurance) organization, insurance broker shall publish annual consolidated financial statements, and in the absence of a subsidiary (subsidiaries) organization (organizations), unconsolidated annual financial statements, as well as an audit report in the manner and within the time frame established by the regulatory legal act of the authorized body, after confirmation by the audit organization of the reliability of the information presented in them and approval of the annual financial statements by the annual general meeting of shareholders of the bank, insurance company (reinsurance) organization, annual general meeting of participants of the insurance broker, insurance broker - non-resident of the Republic of Kazakhstan.

A bank, a branch of a non-resident bank of the Republic of Kazakhstan, at the request of the authorized body, publishes other reporting on the Internet resource of the bank, a branch of a non-resident bank of the Republic of Kazakhstan in accordance with the list and deadlines established by the regulatory legal act of the authorized body.

A bank, insurance (reinsurance) organization quarterly publishes a balance sheet and profit and loss statement that comply with international financial reporting standards, in the manner and within the time limits established by the regulatory legal act of the authorized body, without their audit confirmation.

2. Banking holdings - residents of the Republic of Kazakhstan, insurance holdings - residents of the Republic of Kazakhstan publish annual consolidated financial statements, and in the absence of a subsidiary (subsidiaries) organization (organizations) - unconsolidated financial statements, as well as an audit report in the manner and within the time limits established by the regulatory legal act of the authorized body.

3. A branch of a non-resident bank of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, a branch of an insurance broker - a non-resident of the Republic of Kazakhstan publishes in the manner and within the time limits established by the regulatory legal act of the authorized body:

annual reporting according to the accounting data of a bank branch - a non-resident of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, a branch of an insurance broker - a non-resident of the Republic of Kazakhstan;

annual consolidated financial statements of a non-resident bank of the Republic of Kazakhstan, an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, an insurance broker - a non-resident of the Republic of Kazakhstan, and in the absence of a subsidiary (subsidiaries) organization (organizations) - unconsolidated annual financial statements of a non-resident bank of the Republic of Kazakhstan, an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, an insurance broker - a non-resident of the Republic of Kazakhstan, as well as an audit report after confirmation by an audit organization of the reliability of the information presented therein and approval of financial statements by a bank - a non-resident of the Republic of Kazakhstan, an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, an insurance broker - a non-resident of the Republic of Kazakhstan.

A branch of a bank - a non-resident of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, a branch of an insurance broker - a non-resident of the Republic of Kazakhstan, publish a quarterly report on assets and liabilities, a report on income and expenses that comply with international financial reporting standards, in the manner and within the time limits established by the regulatory legal act of the authorized body, without their audit confirmation.

Article 10. Features of state regulation, control and supervision of banking activities

Footnote: Footnote. The title of Article 10 is as amended by the Law of the Republic of Kazakhstan dated 07/05/2012 No. 30-V (shall be brought into force after ten calendar days after its first official publication).

In order to implement state regulation, control and supervision of banking activities, the authorized body:

1. determines the procedure for issuing and refusing to issue consent to the acquisition by individuals and legal entities of the status of a major participant in a bank and a bank holding company, permission to create and acquire a subsidiary by banks and bank holding companies, as well as permission to acquire by banks and bank holding companies a significant participation in the capital of legal entities, issues or refuses to issue these consents and permits;

2) establishes the minimum amount of banks’ own capital;

3) establishes requirements for the formation of reserve capital of banks;

4) approves prudential standards and other mandatory norms and limits for banking conglomerates;

6) establishes the procedure for classifying assets and contingent liabilities and creating provisions against them. The procedure for classifying assets and contingent liabilities into the category of doubtful and hopeless is determined in agreement with the state body providing tax control over the fulfillment of tax obligations to the state;

8) determines the procedure for applying and makes a decision on applying compulsory measures to affiliated persons of the bank, provided for by the laws of the Republic of Kazakhstan;

9. makes, in cases established by the banking legislation of the Republic of Kazakhstan, a decision on conservation of the bank and appoints a temporary administration (temporary bank manager);

9-1) in cases provided for by the laws of the Republic of Kazakhstan, makes a decision on the creation and termination of the activities of a stabilization bank;

10) takes, in cases established by the laws of the Republic of Kazakhstan, a decision on deprivation of a banking license to carry out all or certain types of operations provided for by the banking legislation of the Republic of Kazakhstan, and appoints a temporary administration of the bank, a liquidation commission forcibly terminating the activities of a branch of a non-resident bank of the Republic of Kazakhstan;

10-1) takes, in cases established by the laws of the Republic of Kazakhstan, a decision on completing the procedure for voluntary or forced termination of the activities of a branch of a non-resident bank of the Republic of Kazakhstan;

11) performs other functions in accordance with the legislation of the Republic of Kazakhstan.

Article 10-1. Task, functions, rights and responsibilities of a representative of the authorized body in banks

Footnote: Footnote. Article 10-1 was excluded by the Law of the Republic of Kazakhstan dated July 15, 2010 No. 338-IV (the order of enforcement see Article 2).

Article 11. Features of state regulation, control and supervision of insurance activities

Footnote: Footnote. The title of Article 11 is as amended by the Law of the Republic of Kazakhstan dated 07/05/2012 No. 30-V (shall be brought into force after ten calendar days after its first official publication).

In order to carry out state regulation, control and supervision of insurance activities, the authorized body:

1. determines the procedure for issuing and refusing to issue consent for individuals and legal entities to acquire the status of a major participant in an insurance (reinsurance) organization and an insurance holding company, permission for the creation and acquisition of a subsidiary by an insurance (reinsurance) organization and an insurance holding company, as well as permission for the acquisition by insurance (reinsurance) organizations and insurance holding companies of a significant participation in the capital of legal entities, issues the said consent and permission or refuses to issue them;

2) establishes requirements for the formation of insurance reserves by insurance (reinsurance) organizations, branches of insurance (reinsurance) organizations non-residents of the Republic of Kazakhstan, the methodology for calculating insurance reserves and their structure;

2-1) approves the requirements for the assessment and structure of insurance liabilities in accordance with international financial reporting standards and automation of their assessment, the methodology for assessing insurance liabilities, the procedure and timing for its approval;

4) determines the procedure for placement and investment of assets by insurance (reinsurance) organizations;

5) establishes requirements for the content and procedure for issuing insurance policies;

6) determines the procedure and conditions for increasing the amount of regular insurance payments during the period of validity of annuity contracts on the basis of an actuarial conclusion and requirements for its content;

7) determines the procedure and conditions for the issuance of loans to its policyholders by an insurance organization engaged in accumulative insurance activities;

8) determines the procedure for accounting by an insurance (reinsurance) company, a branch of a non-resident insurance (reinsurance) company of the Republic of Kazakhstan of insurance and reinsurance contracts, including those executed by an insurance (reinsurance) company, a branch of a non-resident insurance (reinsurance) company of the Republic of Kazakhstan in violation of the deadlines established (by contracts or legislation of the Republic of Kazakhstan);

10) takes, in cases established by the laws of the Republic of Kazakhstan, a decision on deprivation of a license for the right to carry out insurance (reinsurance) activities and appoints a temporary administration (temporary administrator) of an insurance (reinsurance) organization, a liquidation commission of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan that forcibly terminates its activities;

10-1) takes, in cases established by the laws of the Republic of Kazakhstan, a decision on completing the procedure for voluntary or forced termination of the activities of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan;

11) determines the procedure for mandatory collective guarantee of insurance payments by type of compulsory insurance;

12) performs other functions in accordance with the legislation of the Republic of Kazakhstan.

Article 12. Features of state regulation, control and supervision over the activities of securities market entities and other financial instruments

Footnote: Footnote. The title of Article 12 is as amended by the Law of the Republic of Kazakhstan dated November 24, 2015 No. 422-V (to come into effect from January 1, 2016).

In order to carry out state regulation, control and supervision over the activities of subjects of the securities market and other financial instruments, the authorized body:

1. recognizes financial market assets as securities;

1-1) monitors issuers of non-state issue-grade securities;

2) carries out state registration of issues of non-state issue-grade securities, Islamic securities, derivative securities;

reviews and approves reports on the results of the placement of shares, reports on the exchange of placed shares of a joint-stock company of one type for shares of a given joint-stock company of another type, reports on the results of the placement or redemption of Islamic securities and derivative securities;

cancels issues of shares and bonds;

3) determines the conditions and procedure for the issue, placement, circulation and redemption of securities, including derivative securities;

4) establishes the conditions and procedure for state registration of issues of securities, including derivative securities, consideration of reports on the results of their placement, reports on the results of placement or redemption of Islamic securities and derivative securities, as well as their cancellation;

8) determines the conditions and procedure for suspending and resuming the placement and circulation of securities and derivative securities;

9) maintains the State Register of Securities, the electronic register of the licensor and the register of permits to carry out activities in the securities market;

9-1) determines the procedure for issuing and refusing to issue consent for individuals and legal entities to acquire the status of a major participant in an investment portfolio manager, requirements for documents submitted to obtain said consent, issues or refuses to issue such consent;

9-2) establishes the minimum size of the authorized capital of professional participants in the securities market, the procedure for its formation and composition;

9-3) approves prudential standards and other mandatory norms and limits for professional participants in the securities market;

10) establishes the conditions and procedure for carrying out professional activities on the securities market, including requirements for the conditions and procedure for performing transactions with securities;

11) establishes the investment procedure for investment portfolio managers and institutional investors;

11-1) establishes the procedure for the investment portfolio manager to keep track of pension savings at the expense of voluntary pension contributions on individual pension accounts of contributors (recipients);

11-2) issues permission to carry out the reorganization of the voluntary savings pension fund;

12) establishes the procedure for the activities of organizers of trading in securities and professional organizations;

13) exercises control over the manipulation of prices (rates) of securities and other financial instruments, including derivative securities and foreign currencies, the conclusion of transactions on the securities market using insider information or information constituting official, commercial, banking or other secret protected by law;

14) carries out regulation and control of the functioning of investment funds in accordance with the legislation of the Republic of Kazakhstan;

14-2) establishes requirements for the presence of a risk management system for professional participants in the securities market;

15) performs other functions in accordance with the legislation of the Republic of Kazakhstan.

Article 12-1. Monitoring of issuers of non-state issue-grade securities

Footnote: Footnote. The law is supplemented by Article 12-1 in accordance with the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (shall be enforced upon the expiration of ten calendar days from the date of its first official publication); excluded by the Law of the Republic of Kazakhstan dated 07/03/2019 No. 262-VI (shall be enforced from 01/01/2020).

Article 12-2. Features of state regulation, control and supervision of microfinance activities

In order to implement state regulation, control and supervision of microfinance activities, the authorized body:

1. approves the rules for licensing microfinance activities, qualification requirements for carrying out microfinance activities and a list of documents confirming compliance with them;

2) maintains a register of organizations engaged in microfinance activities;

3) establishes the minimum amounts of authorized and equity capital of organizations engaged in microfinance activities;

4) approves prudential standards and other mandatory norms and limits for organizations engaged in microfinance activities;

5) approves the rules for classifying assets and contingent liabilities for provided microloans and creating provisions (reserves) against them in agreement with the authorized body in charge of ensuring tax revenues and other obligatory payments to the budget;

6) performs other functions provided for by this Law, other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

Article 12-3. State regulation, control and supervision of the activities of self-regulatory organizations in the field of microfinance activities and self-regulatory organizations in the field of collection activities

1. In order to implement state regulation, control and supervision over the activities of self-regulatory organizations in the field of microfinance activities and self-regulatory organizations in the field of collection activities, the authorized body:

1. coordinates the rules and standards of self-regulatory organizations in the field of microfinance activities and self-regulatory organizations in the field of collection activities;

2) maintains registers of self-regulatory organizations in the field of microfinance activities and self-regulatory organizations in the field of collection activities;

3) establishes the procedure for carrying out the activities of a self-regulatory organization in the field of microfinance activities and a self-regulatory organization in the field of collection activities;

4) conduct inspections of the activities of self-regulatory organizations in the field of microfinance activities and self-regulatory organizations in the field of collection activities in order to identify and (or) prevent facts of non-compliance by self-regulatory organizations in the field of microfinance activities and self-regulatory organizations in the field of collection activities with the requirements established by this Law, other laws of the Republic of Kazakhstan, regulatory legal acts of the authorized body and the National Bank of the Republic of Kazakhstan, rules, as well as standards of self-regulatory organizations in the field of microfinance activities and self-regulatory organizations in the field of collection activities;

5) applies limited enforcement measures and sanctions provided for by the laws of the Republic of Kazakhstan to self-regulatory organizations in the field of microfinance activities and self-regulatory organizations in the field of collection activities;

6) publishes in the media information about self-regulatory organizations in the field of microfinance activities and self-regulatory organizations in the field of collection activities (except for information constituting official, commercial, banking or other secrets protected by law), including information on measures taken against them;

7) performs other functions provided for by this Law, other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

2. Control and supervision over the activities of self-regulatory organizations in the field of microfinance activities and self-regulatory organizations in the field of collection activities are carried out by the authorized body in accordance with this Law and other laws of the Republic of Kazakhstan and in order to identify, in the course of exercising their control and supervisory functions, violations by self-regulatory organizations in the field of microfinance activities and self-regulatory organizations in the field of collection activities of the requirements of the legislation of the Republic of Kazakhstan, regulatory legal acts of the authorized body and the National Bank of the Republic of Kazakhstan, rules, standards self-regulatory organizations in the field of microfinance activities and self-regulatory organizations in the field of collection activities, as well as violations of the rights and legitimate interests of consumers of financial services.

3. The authorized body exercises other forms of control and supervision in relation to self-regulatory organizations in the field of microfinance activities and self-regulatory organizations in the field of collection activities by:

1. analysis of information and reporting provided by self-regulatory organizations in the field of microfinance activities and self-regulatory organizations in the field of collection activities in accordance with the requirements of the legislation of the Republic of Kazakhstan;

2) remote supervision in the manner established by the laws of the Republic of Kazakhstan.

Article 13. Features of state regulation, control and supervision over the activities of the unified pension savings fund and the voluntary pension savings fund

In order to carry out state regulation, control and supervision over the activities of the unified accumulative pension fund and the voluntary accumulative pension fund, the authorized body:

1. establishes requirements for executive employees of the unified accumulative pension fund and the voluntary accumulative pension fund;

2) establishes the procedure for maintaining records of pension savings at the expense of mandatory pension contributions, mandatory professional pension contributions on individual pension accounts of contributors (recipients);

3) establishes the procedure for transferring voluntary pension savings of investors to a unified pension savings fund in the event of deprivation of a license to manage an investment portfolio with the right to attract voluntary pension contributions;

4) determines the procedure for forming a risk management and internal control system;

5) performs other functions in accordance with the legislation of the Republic of Kazakhstan.

Article 13-1. Features of the procedure for organizing and conducting inspections of financial organizations and their affiliates, legal entities operating in the securities market, issuers of securities, credit bureaus, liquidation commissions of banks, insurance (reinsurance) organizations, savings pension funds

Footnote: Footnote. Article 13-1 is excluded by the Law of the Republic of Kazakhstan dated 07/05/2012 No. 30-V (shall be enforced ten calendar days after its first official publication).

Article 13-2. Powers to audit other information in the financial market

Authorized body:

1. requires an audit of other information of a bank, an insurance (reinsurance) organization, a branch of a non-resident bank of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, a professional participant in the securities market;

2) establishes, in agreement with the authorized state body that carries out state regulation in the field of auditing activities and control over the activities of audit and professional audit organizations, a list of issues to be verified as part of the audit of other information, requirements for the content, deadlines for the audit organization to submit an audit report on the audit of other information, requirements for auditors within the audit organization involved in the audit of other information.

Article 13-3. Objectives of the introduction and general conditions for carrying out activities within the framework of a special regulatory regime

1. A special regulatory regime is a set of special conditions for carrying out activities in the financial sector, activities related to the concentration of financial resources and (or) payment services, established by the authorized body.

2. The special regulatory regime is aimed at achieving the following goals:

1. increasing competition in the financial services market and the investment attractiveness of the financial market;

2) introduction of new services and development of the financial market to increase the degree of satisfaction and compliance with the interests of consumers, business entities and the state;

3) formation of optimal regulation and supervision of the financial market and financial organizations, ensuring financial stability and protecting the interests of consumers.

3. The principles of the special regulatory regime are:

1. ensuring equality of conditions for participation within the framework of a special regulatory regime;

2) compliance by participants with a special regime for regulating the rights and interests of consumers.

4. A special regulatory regime is introduced by a decision of the Board of the authorized body, which specifies the types of activities (services, products) in the financial sector, activities related to the concentration of financial resources and (or) payment services, special conditions for their implementation within the framework of a special regulatory regime, a list of participants, the procedure and conditions for applying the requirements of the legislation of the Republic of Kazakhstan to participants of a special regulatory regime.

The introduction of a special regulatory regime in relation to activities related to payment services is carried out by a decision of the Board of the authorized body in agreement with the National Bank of the Republic of Kazakhstan.

The total period of the special regulatory regime does not exceed five years.

5. The special regulatory regime shall cease to operate after the expiration of the period for which it was introduced.

6. The procedure for introducing and canceling a special regulatory regime, carrying out activities within the framework of a special regulatory regime is approved by a regulatory legal act of the authorized body.

Article 13-4. Carrying out activities under a special regulatory regime

1. Participants in a special regulatory regime may be financial organizations and (or) other legal entities engaged in activities in the financial sector, activities related to the concentration of financial resources and (or) payment services (hereinafter referred to as participants in the special regulatory regime).

2. The activities of a participant in a special regulatory regime are carried out in accordance with an agreement on the implementation of activities within the framework of a special regulatory regime, concluded with the authorized body.

An agreement on the implementation of activities related to payment services within the framework of a special regulatory regime is concluded between a participant in a special regulatory regime, an authorized body and the National Bank of the Republic of Kazakhstan.

A standard agreement on the implementation of activities within the framework of a special regulatory regime is approved by the authorized body.

A standard agreement on carrying out activities within the framework of a special regulatory regime must contain a condition according to which a participant in a special regulatory regime is obliged to notify consumers of services about the implementation of activities within the framework of a special regulatory regime.

3. The selection criteria and procedure for reviewing documents for concluding an agreement on carrying out activities within the framework of a special regulatory regime are approved by a regulatory legal act of the authorized body.

4. The authorized body denies a person wishing to become a participant in a special regulatory regime to enter into an agreement to carry out activities within the framework of a special regulatory regime in cases where the declared type of activity does not comply with the goals of introducing a special regulatory regime, the person wishing to become a participant in a special regulatory regime does not comply with the selection criteria and (or) the submitted documents do not comply with the requirements established by the regulatory legal act of the authorized body.

5. The agreement on the implementation of activities within the framework of a special regulatory regime is terminated:

1. upon termination of a special regulatory regime due to the expiration of the period for which it was introduced, or its cancellation;

2) upon expiration or early termination of the agreement on the implementation of activities within the framework of a special regulatory regime;

3) in other cases provided for by the civil legislation of the Republic of Kazakhstan or an agreement on the implementation of activities within the framework of a special regulatory regime.

6. The authorized body has the right to unilaterally terminate an agreement on carrying out activities within the framework of a special regulatory regime if a participant in a special regulatory regime fails to fulfill the obligations stipulated by the agreement, as well as in the event that a participant in a special regulatory regime ceases to meet the conditions established by a regulatory legal act of the authorized body.

The authorized body notifies the participant in the special regulatory regime of failure to fulfill the obligations determined by the agreement on the implementation of activities within the framework of the special regulatory regime, and the need to eliminate violations within a period of no more than sixty working days from the date of notification.

A participant in the special regulatory regime, within no more than five working days from the date of receipt of the notification from the authorized body, develops and submits to the authorized body an action plan to eliminate the identified violations and (or) causes, as well as the conditions that contributed to their commission. The action plan indicates a list of planned activities, the timing of their implementation, as well as responsible officials.

If the authorized body approves the action plan, the participant in the special regulatory regime begins to implement it and submits to the authorized body a report on the implementation of the measures within the time frame established by the authorized body.

If the authorized body does not agree with the action plan, the participant in the special regulatory regime shall eliminate the comments of the authorized body.

If the action plan is not approved and (or) the participant in the special regulatory regime does not take measures to eliminate these comments, the authorized body notifies the participant in the special regulatory regime of the unilateral termination of the agreement to carry out activities within the framework of the special regulatory regime.

7. After the termination of an agreement on carrying out activities within the framework of a special regulatory regime, a person who was previously a participant in a special regulatory regime is obliged to immediately cease activities carried out within the framework of a special regulatory regime, subject to licensing or for which a permitting procedure is in force in accordance with the laws of the Republic of Kazakhstan, as well as fulfill obligations to its clients in the manner and within the time limits established by the regulatory legal acts of the authorized body.

8. Carrying out activities that are subject to licensing or for which a permitting procedure is in force in accordance with the laws of the Republic of Kazakhstan, after the termination of the agreement on the implementation of activities within the framework of a special regulatory regime, is illegal and entails liability established by the laws of the Republic of Kazakhstan.

9. The powers of the authorized body provided for in paragraphs 4 and 6 of this article in relation to activities related to payment services are carried out in agreement with the National Bank of the Republic of Kazakhstan.

Article 13-5. Powers of the authorized body to use motivated judgment

1. The authorized body has the right to use a reasoned judgment in relation to:

1. banks, organizations carrying out certain types of banking operations, bank holding companies, large bank participants, insurance (reinsurance) organizations, insurance holdings, large participants in an insurance (reinsurance) organization, insurance groups and (or) organizations included in insurance groups, insurance brokers, organizations guaranteeing insurance payments, actuaries licensed to carry out actuarial activities in the insurance market, professional participants in the securities market (except for organizations carrying out transfer agency activities), major participants in investment portfolio managers, microfinance organizations;

2) executive employees, candidates for positions of executive employees of a bank, a bank holding company, an insurance (reinsurance) organization, an insurance holding company, an insurance broker, an organization that guarantees insurance payments, a professional participant in the securities market (with the exception of organizations carrying out transfer agency activities), a unified savings pension fund, a voluntary savings pension fund.

2. A motivated judgment is understood as a reasoned professional opinion of a collegial body of an authorized body, which is the basis for the application of supervisory response measures established by the laws of the Republic of Kazakhstan, as well as for making decisions in other cases provided for by this Law and other laws of the Republic of Kazakhstan.

The authorized body has the right to use a reasoned judgment in the following cases:

1. assessment of business reputation for the presence or absence of an impeccable business reputation, as well as assessment of the financial situation for the presence or absence of an unstable financial position when issuing (refusing to issue) a permit to open a bank, insurance (reinsurance) organization, consent to acquire the status of a major participant in a bank, a bank holding company, a major participant in an insurance (reinsurance) organization, an insurance holding company, a major participant in an investment portfolio manager, a permit for a significant participation of a bank, an insurance company (reinsurance) organization in the capital of organizations, permission to create or acquire a subsidiary by a bank, insurance (reinsurance) organization, as well as consent to the appointment (election) to the position of an executive employee of a bank, bank holding company, insurance (reinsurance) organization, insurance holding company, insurance broker, organization guaranteeing the implementation of insurance payments, a professional participant in the securities market (with the exception of organizations engaged in transfer agency activities), a unified accumulative pension fund, voluntary accumulative pension fund upon notification by a bank, a bank holding company, an insurance (reinsurance) organization, an insurance holding company, an insurance broker, an organization guaranteeing insurance payments, a professional participant in the securities market (except for organizations engaged in transfer agency activities), a unified accumulative pension fund, a voluntary accumulative pension fund and an organization carrying out certain types of banking operations, about the appointment (election) of executive employees, the issuance of bank cards licenses, licenses to carry out insurance (reinsurance) activities, carry out activities as an insurance broker, carry out activities in the securities market;

2) assessment of business reputation for the presence or absence of an impeccable business reputation of executive employees of a bank, bank holding company, insurance (reinsurance) organization, insurance holding company, insurance broker, organization guaranteeing insurance payments, professional participant in the securities market (except for organizations engaged in transfer agency activities), a unified accumulative pension fund, a voluntary accumulative pension fund during the period of their duties or during the period of validity of the issued consent to appointment (election) to the position of manager an employee of a bank, a bank holding company, an insurance (reinsurance) organization, an insurance holding company, an insurance broker, an organization that guarantees insurance payments, a professional participant in the securities market (with the exception of organizations engaged in transfer agency activities), a unified pension savings fund, a voluntary savings pension fund;

3) determining the presence of signs of an employee carrying out activities inherent in the functions of executive employees of a bank, a bank holding company, an insurance (reinsurance) organization, an insurance holding company, an insurance broker, an organization that guarantees the implementation of insurance payments, a professional participant in the securities market (with the exception of organizations carrying out transfer agency activities), a unified savings pension fund, a voluntary savings pension fund;

4) determination of persons who are recognized as persons associated with special relations with a bank, insurance (reinsurance) organization, establishment of facts of provision by a bank, insurance (reinsurance) organization of preferential conditions to persons associated with them by special relations, as well as classification of transactions made by a bank, insurance (reinsurance) organization as transactions with preferential conditions;

5) definitions of persons who are recognized as persons related to each other for the purpose of manipulation in the securities market;

6. assessing the quality of the risk management and internal control system in a bank and banking conglomerate, insurance (reinsurance) organization and insurance group, professional participant in the securities market (with the exception of organizations engaged in transfer agency activities) for the presence and implementation of effective internal policies and procedures appropriate to the nature, scale and complexity of the activity, as well as the size of the bank, banking conglomerate, insurance (reinsurance) organization, insurance group, professional participant in the securities market;

7) assessing the adequacy of provisions (reserves) of a bank, microfinance organization, insurance (reinsurance) organization, professional participant in the securities market (except for organizations engaged in transfer agency activities), insurance reserves calculated by an actuary licensed to carry out actuarial activities in the insurance market, including for compliance of methods for their formation with the risks of the bank, microfinance organization, insurance (reinsurance) organization, professional participant in the securities market, and also the reliability of the information used to generate them;

8) assessing the compliance of a member of the board of directors - an independent director of the bank with independence requirements;

9) assessing audit reports for the presence of a conflict of interest, in which the interest of the audit organization may influence the opinion on the reliability of the financial statements of the audited entity;

10) assessing a transaction carried out (proposed to be carried out) by the bank for signs of high risk;

11) assessing the activities (operations) of financial organizations, authorized agents and other participants in the financial market when providing financial products to consumers of financial services for the presence of unfair practices.

3. The composition of the collegial body of the authorized body, specified in part one of paragraph 2 of this article, is approved by the Board of the authorized body from among the Deputy Chairmen of the authorized body, heads of structural divisions of the authorized body. Meetings of the collegial body of the authorized body are chaired by one of the Deputy Chairmen of the authorized body.

Reasoned judgment is used by the authorized body in compliance with the principles of legality, validity, objectivity and a uniform approach.

A motivated judgment is based on information received as part of the exercise by the authorized body of control and supervision over the activities of the persons specified in subparagraph 1) of paragraph 1 of this article, and other information received from individuals and legal entities, international organizations, government bodies, including foreign supervisory authorities and organizations, other available sources and which is essential for the formation of a motivated judgment.

When forming a reasoned judgment, the authorized body takes into account the explanations of the persons specified in paragraph 1 of this article, if any.

The draft motivated judgment is sent to the person specified in paragraph 1 of this article. The person specified in paragraph 1 of this article must submit to the authorized body a reasoned response about agreement or disagreement with the draft reasoned judgment within five working days. Failure by the person specified in paragraph 1 of this article to provide a reasoned response within the prescribed period is considered agreement with the draft reasoned judgment.

Based on the results of consideration of the reasoned response about disagreement with the draft motivated judgment, if it is submitted by the person specified in paragraph 1 of this article, the authorized body determines the need to submit the draft motivated judgment for consideration by the collegial body of the authorized body.

4. In case of disagreement with the supervisory response measure applied by the authorized body on the basis of a reasoned judgment, the person specified in paragraph 1 of this article, within ten working days from the date of application of the supervisory response measure, has the right to submit his objections to the authorized body in writing.

Objections to the application of supervisory response measures are considered at a meeting with the participation of the Chairman of the authorized body or submitted for consideration to the Board of the authorized body at the proposal of the Chairman of the authorized body. If a supervisory response measure applied on the basis of a reasoned judgment may lead to a decrease in prudential standards and other mandatory norms and limits below the established values, the received objections are considered by the Board of the authorized body. Representatives of the person specified in paragraph 1 of this article have the right to participate in the consideration of objections.

Objections must be considered within ten working days from the date of their receipt. The period for consideration of objections may be extended once for a period of no more than ten working days.

Based on the results of consideration of the objections of the person specified in paragraph 1 of this article, the authorized body sends a written notice of reasonable disagreement with the objections or cancellation of the supervisory response measure applied by the authorized body.

A supervisory response measure applied on the basis of a reasoned judgment comes into force upon the expiration of the period specified in part one of this paragraph, or from the date of sending to the person specified in paragraph 1 of this article a written notice of reasonable disagreement with objections if they are submitted.

The person specified in paragraph 1 of this article has the right to appeal the supervisory response measure applied on the basis of a reasoned judgment in court.

The authorized body is responsible for decisions recognized as illegal, made on the basis of a reasoned judgment, in accordance with the Civil Code of the Republic of Kazakhstan.

5. The authorized body publishes, taking into account confidentiality requirements, a generalized practice of applying supervisory response measures using motivated judgment.

6. The procedure for the formation and use of a motivated judgment is determined by a regulatory legal act of the authorized body.

7. The requirements of this article apply to branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan.

Article 13-6. Powers in the field of ensuring information security of financial organizations

In order to ensure information security of financial organizations, the authorized body in the relevant areas:

1. approves the procedure for assessing the level of protection against information security threats;

1-1) adopts mandatory regulatory legal acts for financial organizations in the field of regulating the activities of financial organizations to ensure information security in accordance with the goals and objectives provided for in paragraphs 1 and 3 of Article 3 of this Law and the legislation of the Republic of Kazakhstan. The list of subordinate regulatory legal acts is determined in the regulations on the authorized body;

2) approves the methodology for assessing information security risks, including the procedure for ranking financial organizations according to the degree of exposure to information security risks;

3) approves the requirements for the competencies of managers and employees of information security departments, including requirements for advanced training of persons responsible for ensuring information security;

4) approves the requirements for response services to information security incidents and conducting internal investigations of information security incidents;

5) performs other functions and powers provided for by this Law, other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

The requirements of this article apply to branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan.

Article 14. Powers to receive and provide information

In order to ensure high-quality and timely implementation of the functions of state regulation, control and supervision of the financial market and financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan, the implementation of the requirements of this Law and other laws of the Republic of Kazakhstan, the authorized body has the right to receive free of charge from any individuals and legal entities, branches of non-resident banks of the Republic of Kazakhstan, insurance branches (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan, as well as government bodies, the necessary information, including information constituting official, commercial, banking and other secrets protected by law. In this case, the information received is not subject to disclosure.

The authorized body provides the received information specified in part one of this article to the National Bank of the Republic of Kazakhstan, including by providing it with access to the information systems of the authorized body.

The authorized body submits financial and other reports of organizations engaged in microfinance activities, collection agencies, self-regulatory organizations in the field of microfinance activities and self-regulatory organizations in the field of collection activities in order to monitor the activities of their members (participants).

State bodies, financial and other organizations, their associations (unions), as well as individuals, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan are obliged to provide, at the request of the authorized body, documents, statements, including financial, and, if necessary, other additional information necessary for the authorized body to perform its functions.

Employees of an authorized body, a self-regulatory organization in the field of microfinance activities and a self-regulatory organization in the field of collection activities are responsible for the disclosure of information received during the implementation of control and supervisory functions that constitute official, commercial, banking or other secrets protected by law, in accordance with the laws of the Republic of Kazakhstan.

Article 14-1. Interaction of the authorized body with the National Bank of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan on issues of stability of the financial system

The authorized body interacts with the National Bank of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan on issues of stability of the financial system through:

1. informing each other about proposed actions and achieved results that are of national importance;

2) joint assessment of risk factors for financial stability;

3) development, adoption and implementation of a set of agreed decisions in order to minimize systemic risk, prevent the occurrence of a financial crisis and minimize its consequences;

4) concluding an agreement on financial stability issues.

Article 15. Interaction of the authorized body with other government bodies of the Republic of Kazakhstan and bodies of other states that carry out regulation, control and supervision of financial markets and financial organizations

Footnote: Footnote. The title of Article 15 as amended by the Law of the Republic of Kazakhstan dated 07/03/2019 No. 262-VI (shall be enforced from 01/01/2020).

1. The authorized body, within the limits of the powers granted to it by the legislative acts of the Republic of Kazakhstan, is independent in its activities. State bodies do not have the right to interfere with the activities of the authorized body in the implementation of its legally established powers, except in cases provided for by the legislative acts of the Republic of Kazakhstan.

2. The authorized body coordinates its activities with other government bodies within the competence provided for by the legislation of the Republic of Kazakhstan.

The authorized body provides information received in accordance with international treaties of the Republic of Kazakhstan to other government bodies of the Republic of Kazakhstan, as well as to the organizations specified in paragraph 4 of this article, under the conditions provided for by this article.

The authorized body provides information received in accordance with international treaties of the Republic of Kazakhstan, agreements providing for the exchange of confidential information, to other government bodies of the Republic of Kazakhstan only with the consent of the party that provided it with such information.

4. The authorized body cooperates with control and supervisory authorities of other states, international and other organizations and has the right to exchange, in compliance with confidentiality, information constituting a trade secret on the securities market, banking secret, insurance secret or other secret protected by law, necessary for the implementation of control and supervisory functions, on the basis and in accordance with an international treaty of the Republic of Kazakhstan, an agreement providing for the exchange of confidential information.

Other organizations specified in part one of this paragraph mean the Astana International Financial Center Committee for the Regulation of Financial Services, associations of central banks, control and supervisory authorities of other states, created for the purpose of developing uniform standards for regulating the activities of the banking sector, securities market and insurance market.

Chapter 2-1. The procedure for organizing and implementing control and supervision over the financial market and financial organizations and in the field of financial legislation of the Republic of Kazakhstan

Footnote: Footnote. The Law is supplemented by Chapter 2-1 in accordance with the Law of the Republic of Kazakhstan dated July 3, 2019 No. 262-VI (the order of enforcement see Article 2).

Article 15-1. Control and supervision of the financial market and financial organizations and in the field of financial legislation of the Republic of Kazakhstan

1. Control and supervision of the financial market and financial organizations and in the field of financial legislation of the Republic of Kazakhstan are carried out by the authorized body and the National Bank of the Republic of Kazakhstan (hereinafter for the purposes of this chapter - control and supervision bodies) within their competence.

Control and supervision in the field of financial legislation of the Republic of Kazakhstan provide for the exercise by control and supervision bodies, within the limits of their competence, of control and supervision of compliance by financial organizations, their branches and affiliates, the Development Bank of Kazakhstan, the Export Credit Agency of Kazakhstan, legal entities operating in the securities market, other subjects of the securities market, issuers of securities, credit bureaus, operators of electronic trading platforms for the sale of banking and microfinance assets, banking holdings, banking conglomerates, large participants in banks, insurance holding companies, insurance groups, large participants in insurance (reinsurance) organizations, an organization guaranteeing insurance payments, actuaries licensed to carry out actuarial activities in the insurance market, special financial companies, Islamic special financial companies, investment funds, large participants in investment portfolio managers, persons possessing the characteristics of a major participant in a bank, insurance (reinsurance) organization, investment portfolio manager, bank holding company, insurance holding company, professional organizations, collection agencies, payment system participants, operators and operational centers of payment systems, including any other person authorized under an agreement with them to provide services for the functioning of the payment system, payment service providers, including any other person authorized under an agreement with them to perform functions for the provision of payment services, payment organizations, service providers digital assets, with the exception of digital asset service providers - participants of the Astana International Financial Center, organizations for storing the underlying asset of a digital financial asset, issuers of digital financial assets, as well as persons carrying out currency transactions, temporary administrations (temporary administrators), liquidation commissions of banks, insurance (reinsurance) organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, liquidation commissions of branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan (hereinafter referred to as the inspected entity) requirements established by the banking, currency legislation of the Republic of Kazakhstan, legislation of the Republic of Kazakhstan on insurance and insurance activities, payments and payment systems, digital assets, social protection, the securities market, accounting and financial reporting, credit bureaus and the formation of credit histories, mail, Development Bank of Kazakhstan, microfinance activities, collection activities, Insurance Payment Guarantee Fund, anti-money laundering, anti-terrorist financing and financing of the proliferation of weapons of mass destruction, self-regulation, limited and additional liability partnerships, joint stock companies, investment and venture funds, this Law and other laws of the Republic of Kazakhstan, as well as rules for automation of accounting approved by the National The Bank of the Republic of Kazakhstan, regulatory legal acts of the authorized body regulating relations related to the activities of the operator of an electronic trading platform for the sale of banking and microfinance assets and the functioning of an electronic trading platform for the sale of banking and microfinance assets, identification of violations of the rights and legitimate interests of consumers of financial services, violations that pose a threat to the national and economic security of the Republic of Kazakhstan, the stability of its financial system, identification of shortcomings and (or) risks in the activities of financial organizations, banking conglomerates and (or) insurance groups.

2. Based on the results of control, the control and supervision body in accordance with this Law and other laws of the Republic of Kazakhstan and in case of detection, in the course of carrying out its control functions, of violations by the inspected entities of the requirements of the legislation of the Republic of Kazakhstan, shortcomings and (or) risks in the activities of financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan, banking conglomerates and (or) insurance groups initiates administrative proceedings and (or) apply other measures, including legal restrictive measures provided for by the laws of the Republic of Kazakhstan.

Based on the results of supervision, the control and supervision body in accordance with this Law and other laws of the Republic of Kazakhstan and in the event that, in the course of carrying out its supervisory functions, violations by the inspected entities of the requirements of the legislation of the Republic of Kazakhstan, shortcomings and (or) risks in the activities of financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan, banking conglomerates and (or) insurance groups, apply the provided laws of the Republic of Kazakhstan measures, including legal restrictive measures, without initiating administrative proceedings.

3. The control and supervision body shall exercise control and supervision in the form of inspection and other forms in accordance with this Law and other laws of the Republic of Kazakhstan.

Article 15-2. Types of checks

1. The control and supervision body, within its competence, carries out independently or with the involvement of other state bodies and (or) organizations inspections based on risk assessment, unscheduled and documentary inspections of the activities of the inspected entities, comprehensively or selectively on certain issues of their activities.

When conducting an inspection of the activities of the inspected entities, the control and supervision body has the right to inspect the activities of affiliates of the inspected entities solely for the purpose of determining the degree and nature of their influence on the activities of the inspected entities.

The requirements of this paragraph do not apply to non-residents of the Republic of Kazakhstan who are major participants in a financial organization, bank holding companies, insurance holding companies, persons possessing the characteristics of a major participant in a financial organization or bank holding company, or insurance holding company, if one of the following conditions is met:

the presence of an individual credit rating not lower than the “A” rating of one of the rating agencies, the list of which is established by the authorized body, as well as written confirmation from the financial supervisory authority of the state of which a major participant in a financial organization is a resident - a legal entity, a bank holding company, an insurance holding company, a person that has the characteristics of a major participant in a financial organization or a bank holding company, or an insurance holding company, that these persons - non-residents of the Republic of Kazakhstan are subject to consolidated supervision;

the existence of an agreement on the exchange of information between the authorized body and the relevant supervisory authority of a foreign state, as well as the minimum required rating of one of the rating agencies. The minimum rating and list of rating agencies are established by the regulatory legal act of the authorized body.

When conducting an inspection of the activities of a branch of a bank - a non-resident of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, a branch of an insurance broker - a non-resident of the Republic of Kazakhstan, the authorized body has the right to obtain information about the activities of a bank - a non-resident of the Republic of Kazakhstan, an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, an insurance broker - a non-resident of the Republic of Kazakhstan from the financial supervisory authority of the state whose resident bank is a non-resident of the Republic of Kazakhstan, an insurance company. (reinsurance) organization - a non-resident of the Republic of Kazakhstan, an insurance broker - a non-resident of the Republic of Kazakhstan, within the framework of an agreement on the exchange of information between the authorized body and the relevant supervisory authority of a foreign state, the resident of which is a bank - a non-resident of the Republic of Kazakhstan, an insurance (reinsurance) organization - a non-resident of the Republic of Kazakhstan, an insurance broker - a non-resident of the Republic of Kazakhstan.

2. An inspection based on a risk assessment is an inspection carried out within the competence of the control and supervision body with a visit to the inspected entity and assigned on the basis of an assessment of the risk level in relation to the inspected entity.

An inspection of the subject based on a risk assessment is carried out within the competence of the control and supervision body no more than once a year.

The list of entities subject to inspection is compiled within the competence of the control and supervision body on a semi-annual basis, taking into account the assessment of risks associated with the activities of the inspected entities.

The list of entities subject to inspection based on risk assessment is approved within the competence of the head of the control and supervision body or other authorized officials on the basis of the relevant order of the head of the control and supervision body.

3. An unscheduled inspection is carried out within the competence of the control and supervision body with a visit to the inspected entity in the following cases:

1. in connection with the receipt of appeals from individuals and legal entities and requests from government bodies, submitted in the manner established by the legislation of the Republic of Kazakhstan, as well as the receipt of other information about violations of the legislation of the Republic of Kazakhstan;

2) in case of detection, within the framework of the performance of control and supervisory functions, of violations of the requirements of the legislation of the Republic of Kazakhstan or shortcomings and (or) risks that may lead to the creation of a situation that threatens the stable functioning of a financial organization, a branch of a non-resident bank of the Republic of Kazakhstan, a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non-resident insurance broker of the Republic of Kazakhstan, a banking conglomerate, an insurance group and (or) the interests of their clients;

3) if there is a threat to the national and economic security of the Republic of Kazakhstan, the stability of its financial system;

4) for the purpose of monitoring the elimination of violations of the requirements of the legislation of the Republic of Kazakhstan identified by the previous inspection;

5. if the bank is classified as a bank with an unstable financial position, creating a threat to the interests of its depositors and creditors and (or) a threat to the stability of the financial system, and (or) the bank is classified as an insolvent bank;

6. in the event that a branch of a non-resident bank of the Republic of Kazakhstan is classified as a branch of non-resident banks of the Republic of Kazakhstan with an unstable financial situation that creates a threat to the interests of its depositors and creditors and (or) a threat to the stability of the financial system.

An unscheduled inspection may simultaneously cover the activities of several entities regarding their compliance with certain requirements of the legislation of the Republic of Kazakhstan.

4. Documentary verification is carried out within the competence of the control and supervision body without visiting the inspected entity in the form of a request for documents and information when identifying signs of violations of the requirements of the legislation of the Republic of Kazakhstan in the process of analyzing administrative data or in connection with the receipt of requests from individuals, legal entities and government bodies and other information requiring verification of compliance with the legislation of the Republic of Kazakhstan, on issues within the competence of the control and supervision body.

Article 15-3. General procedure for organizing and conducting an inspection based on a risk assessment, an unscheduled inspection

1. An inspection based on a risk assessment and an unscheduled inspection are carried out within the competence of the control and supervision body on the basis of an act on the appointment of an inspection, approved by the deputy head of the control and supervision body, the heads of territorial divisions of the control and supervision body or other authorized officials on the basis of the relevant order.

In cases where an inspection is ordered based on a risk assessment or an unscheduled inspection, acts on the appointment of an inspection are recorded in the register of acts on the appointment of an inspection. Divisions of control and supervision bodies, within their competence, maintain separate logs for registering acts on the appointment of inspections.

The control and supervision body, within its competence, registers the act of ordering an inspection with the authorized body for legal statistics and special accounting no later than two working days after the start of the inspection.

The act of ordering the inspection shall indicate:

1. number and date of the act;

2) the surname, initials and position of the inspection workers, as well as the persons entrusted with the management of the inspection;

3) the name of the inspected entity in respect of which the inspection is scheduled, its location;

4) type of inspection;

5) issues to be verified;

6) the period for conducting the inspection;

7) period under review.

2. The beginning of an inspection based on a risk assessment, an unscheduled inspection, is considered to be the date of delivery to the head (his deputy) of the inspected entity a copy of the act on the appointment of the inspection. After delivery to the inspected entity of a copy of the act on the appointment of an inspection, a mark is placed on its original indicating receipt and familiarization with the act on the appointment of an inspection.

In case of refusal to accept an act on the appointment of an inspection or obstruction of access of officials of the control and supervision body carrying out the inspection to the materials necessary for the inspection, a corresponding act is drawn up, which is signed by the official of the control and supervision body carrying out the inspection. If an employee of the inspected entity refuses to accept the act of ordering the inspection, a corresponding entry is made in it. Refusal to receive an inspection appointment certificate is not grounds for canceling the inspection. In cases of refusal of the inspected entity to provide documents, information within the time limits specified in the requests of the inspection team, failure to comply with the conditions of this article, resulting in the impossibility of conducting an inspection within the established time frame, as well as in the event of the impossibility of generating inspection materials due to the refusal of the inspected entity to provide all necessary information, documents and information, including copies of verified documents for inclusion in the inspection materials, the inspection is considered failed by the decision of the head of the inspection in agreement with the official authorized to approve act on appointment of inspection.

When delivering a copy of the act on the appointment of an inspection to an employee of the inspected entity or its founder (one of the founders), a copy of the act on the appointment of the inspection with a note of receipt by its head (his deputy) of the inspected entity must be presented to officials of the control and supervision body within two working days from the date of delivery of the act on the appointment of the inspection.

If it is impossible to deliver a copy of the act on the appointment of an inspection to an employee of the inspected entity or its founder (one of the founders), it is sent by registered mail with notification at the place of registration of the inspected entity and (or) its manager (his deputy). If the letter is returned and it is impossible to deliver the act of ordering the inspection within the time limits established for its conduct, the inspection is considered failed. In this case, the head of the inspection notifies in writing the official authorized to approve the act on the appointment of the inspection.

3. The inspected entity, no later than the next day after the start of the inspection, submits a letter addressed to the head of the inspection or the inspection employee of the control and supervision body, containing data on:

1. the manager responsible for ensuring the conduct of the inspection, as well as for familiarizing and signing the act on completion of the inspection, the interim act and (or) the act on the results of the inspection, and the person replacing him;

2) specialists of the inspected entity, responsible for preparing the necessary documents (information), their timely transfer to inspection workers and (or) receiving interim reports from inspection workers.

4. The period for conducting an inspection based on a risk assessment or an unscheduled inspection should not exceed thirty working days. Due to the significant volume of the inspection, the period for conducting an inspection based on a risk assessment, an unscheduled inspection can be extended on the basis of an additional act on the extension of the inspection, approved by the deputy head of the control and supervision body, heads of territorial divisions of the control and supervision body or other authorized officials on the basis of the relevant order, only once for a period of no more than thirty working days, and in relation to a bank, a branch of a non-resident bank of the Republic of Kazakhstan classified as banks, branches of non-resident banks of the Republic of Kazakhstan with unstable financial position, creating a threat to the interests of its depositors and creditors and (or) a threat to the stability of the financial system, or to the category of insolvent banks, branches of non-resident banks of the Republic of Kazakhstan - for a period of more than thirty working days.

5. The inspected entity is obliged to provide inspecting employees with permission to enter its administrative buildings (including on holidays and weekends), a separate room for work, equipped with office equipment and long-distance communications, provide access to information relating to the activities of the inspected entity, including automated systems and databases in real time without the possibility of correcting data (in viewing mode with the ability to display data on paper), provide inspecting employees with the opportunity to make copies of the necessary documents, including in electronic form, as well as ensure the provision of explanations (oral and written) to the questions of inspection workers and assist the inspection employees in the timely completion of the inspection.

The requirements of part one of this paragraph regarding the obligation to provide a separate room for work, equipped with office equipment and long-distance communications, do not apply to inspected entities that are small businesses.

6. Inspecting employees send written requests to the head of the inspected entity, the manager responsible for ensuring the inspection, or another authorized employee of the inspected entity, which are subject to execution within the specified time frame.

The inspected entity is obliged, on the day of receiving a request from the inspection staff or within the time limits established in the request, to provide all information, information and documents, including their copies, for verification and inclusion in the inspection materials.

7. When replacing an inspection worker (changing the composition of the inspection group), an additional act is drawn up, which indicates the number and date of the previously drawn up act on the appointment of an inspection and the grounds for replacing the inspection employee (changing the composition of the inspection group).

7-1. When conducting an inspection based on a risk assessment or an unscheduled inspection, inspection workers have the right to:

1. carry out audio, photo and video filming;

2) use records of technical control equipment, surveillance and recording devices, photographic and video equipment related to the subject of the inspection based on a risk assessment, unscheduled inspection.

8. The date of completion of an inspection based on a risk assessment, an unscheduled inspection, is considered to be the date of delivery of the inspection completion certificate to the inspected entity. The act of completion of an inspection based on a risk assessment, an unscheduled inspection, is signed by the head of the inspection and his immediate supervisor and handed over to the inspected entity no later than the end of the inspection period specified in the inspection appointment act.

9. During the period of inspections carried out by the National Bank of the Republic of Kazakhstan, it is not allowed to terminate this inspection upon an application from the authorized organization for the voluntary return of the license for exchange transactions with cash foreign currency.

Article 15-4. Features of conducting a documentary check

1. A documentary check does not require the execution of an act on its purpose.

2. During a documentary inspection, in order to clarify additional circumstances, a request signed by an authorized official is sent to the inspected entity, which indicates:

1. name of the subject being inspected, its location;

2) the basis for the documentary check;

3) a list of documents and information that the inspected entity is obliged to submit to the control and supervision body;

4) deadline for submitting the requested materials;

5) information requiring clarification from the subject being inspected, if necessary.

3. The inspected entity provides the requested documents, information and explanations no later than fifteen working days from the date of receipt of the request, unless otherwise specified in the request.

4. The completion of a documentary inspection is the date of signing by an authorized official of a conclusion on its results, which does not require signature by the subject being inspected.

If it is impossible to conduct a documentary check, the termination of the documentary check is the date of signing by the authorized official of the decision on the impossibility of conducting a documentary check.

Article 15-5. Other inspection issues

1. Inspecting employees of the control and supervision body, if necessary, draw up interim acts, which are presented to the inspected entity for review.

2. The inspected entity, within two working days from the date of receipt of the interim act, returns one copy of the interim act, signed by the head (his deputy) or the head responsible for ensuring the inspection, and, if there are comments on the content of the interim act, submits his written objections to the head of the inspection.

The conclusions set out in the interim acts are preliminary and can be revised in the report on the results of the inspection, taking into account objections received from the subject being inspected and additional information, including from third parties.

3. Within thirty working days from the date of completion of the inspection, based on a risk assessment, an unscheduled inspection, two copies of the report on the results of the inspection, signed by the inspection employees of the control and supervision body, the head of the inspection and his immediate supervisor, are sent to the head of the inspected entity.

The report on the inspection results contains the following information:

1. date and place of drawing up the act;

2) the name of the body that conducted the inspection;

3) the date and number of the act on the appointment of the inspection, on the basis of which the inspection was carried out;

4) surname, initials and position of the person (persons) who conducted the inspection;

5) the name of the inspected entity, its location, business identification number (if available), last name, first name, patronymic (if available) of the head of the inspected entity or his representative;

6) place and period of the inspection;

7) information about the results of the inspection, including violations identified;

8) information about familiarization of the manager (his deputy) or the manager responsible for ensuring the inspection of the inspected entity, or another person specified in paragraph 7 of this article, with the report on the results of the inspection;

9) signature of the official (persons) who conducted the inspection.

The report on the results of the inspection may be accompanied by the necessary documents, information or copies thereof related to the results of the inspection.

4. The manager (his deputy) or the manager responsible for ensuring the inspection of the inspected entity accepts the first copy of the report on the results of the check, endorses each sheet of the second copy of the report, indicates on its last sheet a mark on the date of receipt indicating the position, surname, name, patronymic (if any) and no later than the next day after receiving the report on the results of the check, sends it to the control and supervision body. The results of the inspection, set out in the report on the results of the inspection, are brought to the attention of the inspected entity to the executive and other management bodies of the inspected entity.

5. If there are objections to the results of the inspection, the inspected entity, within ten working days from the date of receipt of the report on the results of the inspection, submits them to the control and supervision body in writing.

6. The results of the inspection of the inspected entity, set out in the report on the results of the inspection based on a risk assessment, unscheduled inspection, if necessary, are considered at a meeting chaired by the head of the control and supervision body (his deputies), heads of departments of the control and supervision body, persons entrusted with the management of the inspection, with the invitation of the heads of the inspected entity.

The results of the meeting are documented in a protocol signed by the chairman of the meeting, and within five working days from the date of signing they are sent for review to the head of the subject being inspected. If there are objections, the inspected entity, within three working days from the date of receipt of the minutes of the meeting, submits them to the control and supervision body in writing.

If the control and supervision body does not agree with the objections of the inspected entity to the minutes of the meeting, the final decision is made by the head of the control and supervision body or his deputy and is brought to the attention of the head of the inspected entity.

7. An act on the results of an inspection based on an assessment of the degree of risk, an unscheduled inspection on the part of the inspected entity, is signed by the head, his deputy or the manager responsible for ensuring the inspection.

In the absence of the head of the inspected entity, his deputy or the manager responsible for ensuring the inspection, the act on the results of the inspection based on a risk assessment, an unscheduled inspection on the part of the inspected entity may be signed by its founder (one of the founders) or another employee acting on behalf of the inspected entity, including on the basis of an appropriate order and (or) power of attorney.

8. In cases of absence of the persons specified in paragraph 7 of this article and the impossibility of delivering the act on the results of the inspection to them for signing, the act on the results of the inspection shall be considered issued from the date of signing the act on the results of the inspection by the inspecting persons.

9. The results of the inspection are to be used solely for the purpose of the control and supervision body performing its functions within the limits of its competence.

10. The report on the results of an inspection based on a risk assessment or an unscheduled inspection cannot be used by the inspected entity to confirm its financial solvency for advertising or other purposes, or transferred without the consent of the control and supervision body to third parties, except in cases provided for by the laws of the Republic of Kazakhstan.

11. If there is a discrepancy between the documentary data of financial and other reporting submitted by the inspected entity to the control and supervision body with the information given in the report on the results of the inspection based on an assessment of the degree of risk, an unscheduled inspection, the inspected entity brings its reporting into line with the actual data specified in the report on the results of the audit, including for previous reporting dates.

12. The inspected entity, within the period established by the control and supervision body, submits for approval an action plan with planned measures, responsible executors and deadlines for eliminating violations and shortcomings identified during the inspection.

After agreeing on the action plan with the control and supervision body, the inspected entity submits reports on the elimination of violations and shortcomings or explanations of the reasons for failure to fulfill its obligations under the action plan.

13. Violation by the inspected entity of the requirements specified in part four of paragraph 2, paragraphs 3, 5 and 6 of Article 15-3, paragraph 3 of Article 15-4 of this Law, as well as in paragraphs 2, 4 and 12 of this article, is the basis for the application to the inspected entity or its manager of limited enforcement measures, supervisory response measures and sanctions provided for by the laws of the Republic of Kazakhstan.

14. Employees of the control and supervision body are prohibited from disclosing or transferring to third parties information obtained during the inspection of the activities of the inspected entity.

15. Persons carrying out the inspection are responsible for the disclosure of information obtained during the inspection of the activities of the inspected entity and constituting a secret protected by law, in accordance with the laws of the Republic of Kazakhstan.

Article 15-6. Other forms of control and supervision

1. The authorized body carries out other forms of control and supervision by:

1. analysis of information and reporting provided in accordance with the requirements of the legislation of the Republic of Kazakhstan;

2) remote supervision, including on a consolidated basis, in relation to financial organizations, their major participants, banking and insurance holding companies, organizations included in a banking conglomerate and an insurance group, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan, organizations guaranteeing the implementation of insurance payments, in the manner established by the laws of the Republic of Kazakhstan;

3) consideration, within the competence established by the legislation of the Republic of Kazakhstan, of documents on the issues of approval, issuance and revocation of permits, consents, licensing, registration of issues of securities, approval of reports on the results of placement (redemption) of securities, cancellation of issues of securities provided for by the laws of the Republic of Kazakhstan, information about affiliated persons;

3-1) consideration, within the competence established by the legislation of the Republic of Kazakhstan, of documents on issues of accounting registration of collection agencies;

4) consideration, within the competence established by the legislation of the Republic of Kazakhstan, of documents provided for by regulatory legal acts regulating the procedure for notifying the authorized body of approval of financial products by financial organizations, branches of a non-resident bank of the Republic of Kazakhstan, branches of an insurance (reinsurance) organization - non-resident of the Republic of Kazakhstan, as well as a list of documents attached to the notification, the procedure for notifying the authorized body of approval of services for the provision of microcredit by organizations engaged in microfinance activities, as well as a list documents attached to the notification;

5) inspection of the security system and compliance with the requirements for premises, electronic and other equipment of participants in the credit history system and insurance database;

6) sending his representative to financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan in cases and in the manner established by the laws of the Republic of Kazakhstan;

7) monitoring issuers of issue-grade securities for compliance with the requirements established by the legislation of the Republic of Kazakhstan on joint-stock companies and the securities market, in the manner established by the laws of the Republic of Kazakhstan;

8) consideration of reports and other information submitted by temporary administrations (temporary administrators), liquidation commissions of banks, insurance (reinsurance) organizations and liquidation commissions of branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan;

9) appointment and dismissal of the chairman and members of liquidation commissions, taking into account branches and representative offices of a forcibly liquidated bank, insurance (reinsurance) organization, liquidation commissions of a branch of a non-resident bank of the Republic of Kazakhstan forcibly terminating its activities, a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan;

10) approval of the interim liquidation balance sheet and the register of claims of creditors of a forcibly liquidated bank, insurance (reinsurance) organization, forcibly terminating the activities of a branch of a non-resident bank of the Republic of Kazakhstan, a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, the composition of the committee of creditors of voluntarily or forcibly liquidated banks, insurance (reinsurance) organizations, voluntarily or forcibly terminating the activities of a branch of a non-resident bank of the Republic of Kazakhstan, a branch of an insurance company non-resident (reinsurance) organization of the Republic of Kazakhstan;

11. approval of the liquidation report and liquidation balance sheet of a forcibly liquidated bank, insurance (reinsurance) organization;

11-1) approval of the report on the liquidation of a branch of a non-resident bank of the Republic of Kazakhstan, a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, which is forcibly terminating its activities;

12) holding meetings and discussions of inspected entities based on the results of control and supervision of their activities;

13. assessment (analysis) of the financial and property condition of a bank classified as a bank with an unstable financial position, creating a threat to the interests of its depositors and creditors and (or) a threat to the stability of the financial system, a category of insolvent banks, including with the involvement of appraisers, audit organizations and other persons and (or) a visit to the bank;

14) approval of the report of the temporary administration of the bank, temporary administration (temporary administrator) of the insurance (reinsurance) organization on the work performed;

15) consideration of calculations of indicators characterizing compliance by organizations engaged in microfinance activities with prudential standards, other indicators and criteria (standards);

16) analysis of the activities of collection agencies for compliance with the requirements of the legislation of the Republic of Kazakhstan on collection activities, as well as analysis of information, documents and audio and (or) video materials (if available) presented by the collection agency in accordance with subparagraph 15) of paragraph 1 of Article 15 of the Law of the Republic of Kazakhstan “On Collection Activities”;

17) maintaining a register of collection agencies;

18) monitoring advertising of financial organizations.

2. The National Bank of the Republic of Kazakhstan carries out other forms of control and supervision by:

1. analysis of information and reporting provided in accordance with the requirements of the legislation of the Republic of Kazakhstan;

2) consideration, within the competence established by the legislation of the Republic of Kazakhstan, of documents on the issues of issuance and revocation of permits, licensing, provided for by the laws of the Republic of Kazakhstan;

3) inspection of exchange offices of authorized organizations for compliance with qualification requirements;

3-1) inspection of the premises of legal entities whose exclusive activity is collection of banknotes, coins and valuables, for compliance with qualification requirements;

4) giving currency control agents mandatory instructions for their execution in order to properly implement currency control;

5) holding meetings and discussions of the inspected entities based on the results of control and supervision of their activities;

6) analysis and assessment of the functioning of payment systems, as well as services provided by payment service providers;

7) inspection of participants in systemically important payment systems for compliance with the requirements for organizational measures and software and hardware that provide access to payment systems, as part of monitoring systemically important payment systems;

8) maintaining registers of payment systems, payment organizations, significant payment service providers.

Article 15-7. Remote supervision

1. Remote supervision is one of the other forms of control and supervision and is carried out by the authorized body within its competence in relation to financial organizations, their major participants, banking and insurance holding companies, organizations included in a banking conglomerate and insurance group, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan, organizations guaranteeing the implementation of insurance payments (hereinafter referred to as subjects of remote supervision).

2. Remote supervision is carried out by the authorized body on an ongoing basis by analyzing the activities of subjects of remote supervision and interaction with the bodies of subjects of remote supervision in order to:

1. control and supervision of compliance with the requirements of the banking legislation of the Republic of Kazakhstan, the legislation of the Republic of Kazakhstan on insurance and insurance activities, social protection, the securities market, microfinance activities, accounting and financial reporting, mail, the Development Bank of Kazakhstan, self-regulation, collection activities, investment and venture funds;

2) identifying factors influencing the deterioration of the financial position of financial organizations, identifying and assessing existing and potential risks, the degree of their influence on the sustainable activities of remote supervision entities.

3. Analysis of the activities of subjects of remote supervision is carried out by the authorized body on the basis of reports submitted by subjects of remote supervision and other information, including information received within the framework of interdepartmental and international cooperation.

4. As part of conducting remote supervision, the authorized body has the right to request from the subjects of remote supervision and their officials in writing information and documents, including financial statements and materials from meetings (including those held in absentia) of the bodies of the subjects of remote supervision.

Subjects of remote supervision are required to submit the information and documents specified in the request of the authorized body within the time limits established by the authorized body.

Article 15-8. Risk-based approach within the framework of control and supervision

1. The authorized body applies a risk-based approach within the framework of control and supervision over the activities of banks, banking conglomerates, organizations carrying out certain types of banking operations, insurance (reinsurance) organizations, insurance groups, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan, organizations carrying out brokerage and (or) dealer activities in the securities market, investment portfolio management activities.

The main objectives of the risk-based approach are to identify and prevent risks and shortcomings in the activities of the persons specified in part one of this paragraph, for the purpose of early intervention and timely supervisory actions to ensure their financial stability and prevent an increase in risks in their activities.

The risk-based approach is based, inter alia, on a motivated judgment formed on the basis of a quantitative and qualitative analysis of the activities of the persons specified in part one of this paragraph, an analysis of their risk management and internal control systems, including analysis and assessment of the business model, corporate governance, anti-money laundering, anti-money laundering, terrorist financing and financing of the proliferation of weapons of mass destruction, the level of capital and liquidity to cover risks, assessment of internal procedures for determining the required level of equity capital and liquidity, as well as analysis and assessment, taking into account the nature and scale of activities of the persons specified in part one of this paragraph.

2. The risk-based approach within the framework of control and supervision of the activities of persons specified in part one of paragraph 1 of this article takes into account the principle of proportionality, which presupposes:

taking into account the size, significance, nature, scope and complexity of their activities;

categorization according to their importance in the financial market;

determining the frequency, depth and intensity of control and supervision.

3. Based on the results of control and supervision based on a risk-based approach, the authorized body brings to the attention of the persons specified in part one of paragraph 1 of this article the identified risks and shortcomings and applies supervisory response measures and (or) sanctions in accordance with the laws of the Republic of Kazakhstan.

4. The procedure for applying a risk-based approach within the framework of control and supervision of the activities of persons specified in part one of paragraph 1 of this article is determined by a legal act of the authorized body, is confidential information and is not subject to publication in the media.

Article 15-9. Task, functions, rights and responsibilities of the representative

1. In order to carry out control and supervisory functions, the authorized body sends its representative, who is appointed by the authorized body from among its employees, to banks, bank holding companies, organizations engaged in investment portfolio management, insurance (reinsurance) organizations, insurance holding companies, an organization that guarantees insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations.

The number of representatives in the organizations specified in part one of this paragraph is determined by the authorized body.

2. The representative in his activities is guided by this Law, regulatory legal acts of the authorized body and other legislation of the Republic of Kazakhstan.

3. The authorized body has the right at any time to replace its representative in the organizations specified in part one of paragraph 1 of this article.

4. The main task of the representative is to ensure the implementation of the control and supervisory functions of the authorized body.

5. In order to implement the task assigned to him, the representative performs the following functions:

1. analyzes the financial condition of the organization in which he is a representative;

2) monitors compliance with regulatory legal acts, requests, instructions, requirements of the authorized body;

3) makes proposals for conducting an audit in the organization in which he is a representative;

4) is present as an observer at meetings of the board of directors, board of directors, permanent or temporary commissions (committees, working groups) of the organization in which he is a representative;

5) is present at the general meeting of shareholders (participants) of the organization in which he is a representative, as an observer without the right to vote or express an opinion on issues on the agenda of the general meeting of shareholders (participants).

6. The representative has the right:

1. request from the organization in which he is a representative and (or) its officials, orally and in writing, information and documents, including financial statements and materials of meetings (including those held in absentia) of bodies, in order to perform the functions assigned to him;

2) have access to automated systems and databases without the ability to correct data (in viewing mode).

7. The representative is obliged:

1. inform the authorized body about the failure or untimely submission by the organization in which he is a representative of the information and documents requested by him, facts of obstruction of the representative of the authorized body from performing his functions, bribery, threats or other unlawful influence on him by this organization;

2) perform other functions on behalf of the authorized body on the issues specified in the decision of the authorized body to send its representative to the organization specified in part one of paragraph 1 of this article.

8. The organizations specified in part one of paragraph 1 of this article are obliged to:

1. assist the representative in performing his functions;

2) ensure the possibility of complete and timely provision of information to the representative by officials and employees of the organizations specified in part one of paragraph 1 of this article, and access to all sources of information;

3) on the day of receiving a request from a representative or within the time limits established in the request and agreed upon with them, submit all the necessary information and documents;

4) provide access to information relating to their activities, including automated systems and databases without the possibility of correcting data (in viewing mode);

5) provide the representative with copies of documents necessary to perform the functions assigned to him.

9. The representative is responsible for the disclosure of information received during the implementation of control and supervisory functions that constitute official, commercial, banking secrets, secrets of pension savings, insurance or other secrets protected by law, in accordance with the laws of the Republic of Kazakhstan, including after termination of work in the authorized body.

Within one year after termination of work in the authorized body, a representative cannot be hired by the organization in which he was a representative.

The representative is not responsible for the results and decisions taken (adopted) during meetings of the bodies of the organization in which he is or was a representative.

10. The requirements of this article apply to branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations - non-residents of the Republic of Kazakhstan.

Article 15-10. Monitoring of issuers of non-state issue-grade securities

1. Monitoring of issuers of non-state issue-grade securities is carried out by the authorized body for their compliance with the requirements of the legislation of the Republic of Kazakhstan on the securities market and on joint-stock companies:

1. when carrying out state registration of the issue of non-state issue-grade securities, registration of changes and (or) additions to the prospectus for the issue of non-state issue-grade securities, approval of a report on the results of placement or redemption of non-state issue-grade securities and a report on the exchange of placed shares of a joint-stock company of one type for shares of a given joint-stock company of another type;

2) on the disclosure by issuers of non-state issue-grade securities of information about their activities.

2. Monitoring of issuers of non-state issue-grade securities is carried out by the authorized body on the basis of information provided by issuers of non-state issue-grade securities and other information, including that received within the framework of interdepartmental and international cooperation.

3. As part of monitoring issuers of non-state issue-grade securities, the authorized body has the right to request from issuers of non-state issue-grade securities and their officials in writing information and documents, including financial statements and materials of meetings (including those held in absentia) of the bodies of issuers of non-state issue-grade securities.

Issuers of non-state issue-grade securities are required to submit the information and documents requested by the authorized body within the time limits established by it.

Chapter 2-2. Employees of the authorized body

Footnote: Footnote. The law is supplemented by Chapter 2-2 in accordance with the Law of the Republic of Kazakhstan dated 07/03/2019 No. 262-VI (shall be enforced from 01/01/2020).

Article 15-11. Composition of positions of employees of the authorized body

Employees of the authorized body are persons not related to administrative state and civil servants holding positions in the authorized body.

Remuneration for employees of the authorized body is made on the basis of the system of remuneration for employees of the authorized body.

The positions of employees of the authorized body include the following positions:

1. political civil servants;

2) employees of the authorized body;

3) technical employees of the authorized body.

Employees of the authorized body are persons who are not civil servants, exercising official powers in the authorized body, aimed at implementing the tasks and functions of the state.

Occupation of the position of an employee of an authorized body is carried out after receiving positive results of a mandatory special inspection.

A person who has not received positive results of a mandatory special check cannot be appointed to the position of an employee of an authorized body.

Official powers are understood as the rights and responsibilities provided for by a specific public position of employees of an authorized body that meets the goals and objectives facing the authorized body.

The list of positions of employees of the authorized body is approved by the President of the Republic of Kazakhstan.

Technical employees of the authorized body are persons not related to civil servants who perform labor duties to maintain and ensure the functioning of the authorized body.

The list of positions of technical employees is approved by the Chairman of the authorized body.

The work of employees of the authorized body is regulated by the Labor Code of the Republic of Kazakhstan with the features established by this Law, as well as other regulatory legal acts of the Republic of Kazakhstan and acts of the authorized body.

Article 15-12. Termination of an employment contract with employees of the authorized body

Termination of an employment contract with employees of the authorized body is carried out on the following grounds:

1. provided for by the Labor Code of the Republic of Kazakhstan;

2) reaching the retirement age established by the law of the Republic of Kazakhstan, with the right to annually extend the period of their stay in the authorized body;

3) negative results of a mandatory special test;

4) provision of knowingly false information about their income and property;

5) failure to comply with anti-corruption duties and restrictions established by this Law and the Law of the Republic of Kazakhstan “On Combating Corruption”;

6) failure to transfer into trust management of owned shares of investment funds, bonds and shares of commercial organizations;

7) upon admission to the authorized body, submission of knowingly false documents or information that could be grounds for refusal to hire;

8) negative certification results;

9) other grounds provided for by the laws of the Republic of Kazakhstan.

When an employment contract is terminated on the basis of a reduction in the number or staff of employees of an authorized body, an employee of an authorized body holding a reduced position is paid a severance pay in the amount of four average monthly wages if they have at least three years of work experience.

Article 15-13. Rights and obligations of employees of the authorized body

1. Employees of the authorized body have the right:

1. enjoy the rights and freedoms that are guaranteed to citizens of the Republic of Kazakhstan by the Constitution and the Labor Code of the Republic of Kazakhstan;

2) participate, within the limits of their powers, in considering issues and making decisions on them, demand their execution by the relevant bodies and officials;

3) receive, in the prescribed manner, information and materials necessary for the performance of official duties;

4) visit organizations in the manner established by the laws of the Republic of Kazakhstan to perform official duties;

5) require the manager to accurately define the tasks and scope of official powers in accordance with the position occupied by employees of the authorized body;

6) respect for personal dignity, fair and respectful treatment by managers, other individuals and officials;

7) for training and advanced training;

8) freely familiarize themselves with materials that relate to their official powers and, if necessary, give personal explanations;

9) for promotion in position, taking into account qualifications, abilities, conscientious performance of their official powers;

10) demand an official investigation if there are accusations that, in the employee’s opinion, are unfounded;

11) engage in pedagogical, scientific and other creative activities.

2. Employees of the authorized body are obliged to:

1. comply with the Constitution and legislation of the Republic of Kazakhstan;

2) take the oath in the manner determined by the act of the authorized body;

3) ensure compliance and protection of the rights, freedoms and legitimate interests of individuals and legal entities, consider, in the manner and within the time limits established by the legislation of the Republic of Kazakhstan, appeals of individuals and legal entities, take the necessary measures on them;

4) exercise powers within the limits of the rights granted to them and in accordance with official duties;

5) carry out orders and instructions of managers, decisions and instructions of higher authorities and officials issued within the limits of their powers;

6) keep secret information received during the performance of official duties that affects the personal life, honor and dignity of individuals, and not require them to provide such information, except for cases provided for by the legislation of the Republic of Kazakhstan;

7) ensure the safety of state property;

8) immediately bring to the attention of management or law enforcement agencies about cases of corruption offenses that have become known to them;

9) improve their professional level and qualifications for the effective performance of official duties;

10) not to disclose to third parties official, commercial, banking secrets, insurance secrets, pension savings and other secrets protected by law, as well as other information in any form accessible to perception on any type of media, received in the performance of their official powers, including information obtained when working with automated information subsystems (if there is access to them), except for cases provided for by the laws of the Republic of Kazakhstan;

11) within thirty calendar days from the date of taking up the position of an employee of the authorized body, transfer to trust management and submit to the personnel service of the authorized body a notarized copy of the trust management agreement for shares of investment funds, bonds and shares of commercial organizations belonging to them.

3. Employees of the authorized body do not have the right to purchase shares of investment funds, bonds and shares of commercial organizations.

3-1. Within one year after termination of work in the authorized body, an official of the authorized body cannot be hired by a commercial organization if, during the last year before termination of work in the authorized body, during the exercise of his official powers, the specified person, by virtue of his official powers, directly exercised control functions in the form of inspections of this commercial organization or the activities of this commercial organization were directly related to the specified official of the authorized body in accordance with his official powers.

4. Employees of the authorized body, in the event of carrying out, by virtue of their official powers, inspections of the activities of the inspected entities, are obliged to immediately inform senior management about all circumstances that may interfere with the clear and impartial performance of official powers, including:

1. close relatives (in-laws), spouses who are senior employees of the inspected entities;

2) close relatives or spouses working in the audited entities;

3) loans received from the inspected entities and other property obligations to the inspected entities.

Article 15-14. Responsibility of employees of the authorized body

1. For failure to perform and improper performance of assigned duties and labor discipline, employees and technical employees of the authorized body are responsible in accordance with the Labor Code of the Republic of Kazakhstan.

2. Disciplinary action:

1. imposed by an official who has the right to appoint and dismiss an employee of an authorized body subject to disciplinary liability;

2) cannot be imposed repeatedly for the same offense;

3) imposed in the manner determined by the act of the authorized body.

3. Employees of the authorized body who have committed a disciplinary offense may be temporarily suspended from the performance of official duties by an official who has the right to appoint and remove them from office until the issue of liability is resolved in the prescribed manner.

4. Employees and technical employees of the authorized body must be familiar with all materials related to disciplinary action; they are given the right to personally participate in the internal investigation procedure.

5. Actions and decisions of the authorized body may be appealed to the court by the employees and technical employees of the authorized body held accountable.

6. Employees and technical employees of the authorized body, if they commit criminal and other offenses, bear criminal, administrative, and financial liability, respectively, on the grounds and in the manner established by the laws of the Republic of Kazakhstan.

7. The authorized body provides legal protection for its employees, members of the Management Board, including former employees and members of the Management Board, and persons involved by it in the event of filing claims against them in connection with actions (inaction), decision-making in order to implement the functions assigned to the authorized body, including during the period of their performance as members of temporary administrations and liquidation commissions of banks, insurance (reinsurance) organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) non-resident organizations of the Republic of Kazakhstan.

Article 15-15. Vacations for employees of the authorized body

1. Employees of the authorized body are provided with paid annual leave of thirty calendar days with payment of a health benefit in the amount of two official salaries.

Paid annual leave for employees of the authorized body for the first and subsequent years of work, by agreement of the parties, is provided at any time of the working year.

2. At the request of employees of the authorized body, annual paid leave may be provided to them in parts. In this case, one of the parts of the paid annual leave must be at least two calendar weeks of leave duration.

3. Employees of the authorized body may be granted leave without pay in the manner established by the labor legislation of the Republic of Kazakhstan, including in the case of their training within the framework of a state order for postgraduate education programs.

Article 15-16. Guarantees and compensation for employees of the authorized body during business trips

1. Employees of the authorized body are reimbursed expenses for business trips, including to foreign countries, in the manner determined by the authorized body in agreement with the National Bank of the Republic of Kazakhstan.

2. Seconded employees of the authorized body retain their place of work (position) and average salary throughout the business trip.

Article 15-17. Checking the activities of the authorized body

Inspection of the activities of the authorized body by state bodies is carried out with the consent or on behalf of the President of the Republic of Kazakhstan.

Chapter 2-3. Electronic trading platform for the sale of banking and microfinance assets

Footnote: Footnote. The law was supplemented by Chapter 2-3 in accordance with the Law of the Republic of Kazakhstan dated June 19, 2024 No. 97-VIII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Article 15-18. Electronic trading platform for the sale of banking and microfinance assets

1. An electronic trading platform for the sale of banking and microfinance assets (hereinafter referred to as the electronic trading platform) is an Internet resource that provides infrastructure for trading in relation to:

1. property of a bank, an organization carrying out certain types of banking operations, a subsidiary organization for managing stressed assets, specified in paragraph 1 of Article 28 of the Law of the Republic of Kazakhstan “On Banks and Banking Activities in the Republic of Kazakhstan”;

2) the property of the microfinance organization specified in paragraph one of subparagraph 11-7) of paragraph 2 of Article 7 of the Law of the Republic of Kazakhstan “On Microfinance Activities”;

3) rights (claims) under a bank loan agreement;

4) rights (requirements) under the microcredit agreement.

2. Access to the electronic trading platform and its functioning is provided by the operator of the electronic trading platform (hereinafter referred to as the operator).

3. Participants in trading conducted on the electronic trading platform may be banks, organizations carrying out certain types of banking operations, subsidiaries for the management of stressed assets, microfinance organizations, as well as other persons, subject to the restrictions established by Article 63 of the Law of the Republic of Kazakhstan “On Banks and Banking Activities in the Republic of Kazakhstan” and Article 9-1 of the Law of the Republic of Kazakhstan “On Microfinance Activities”.

4. The operator conducts trading on the electronic trading platform on the basis of the operator’s internal rules, developed in accordance with the rules for conducting trading on the electronic trading platform, approved by the regulatory legal act of the authorized body.

Information security of the electronic trading platform is ensured by the operator in the manner determined by the regulatory legal act of the authorized body.

5. Monetary obligations of the parties arising from the purchase and sale agreement, the agreement for the assignment of rights (claims), concluded based on the results of auctions held on the electronic trading platform, are fulfilled by the participants in the auction in the manner and within the time limits specified in the concluded purchase and sale agreement, agreement for the assignment of rights (claims).

The operator is not a party to the purchase and sale agreement or the assignment of rights (claims) concluded based on the results of auctions held on the electronic trading platform.

Article 15-19. Operator

1. A legal entity created in accordance with the legislation of the Republic of Kazakhstan in the organizational and legal form of a joint stock company or limited liability partnership may act as an operator.

2. The operator has the right to carry out activities if there is a permit from the authorized body for the right to carry out the operator’s activities. The date of commencement of operation of the electronic trading platform is the date the operator receives permission from the authorized body to carry out the operator’s activities.

3. For the purposes of ensuring the functioning of the electronic trading platform, the operator is obliged to provide:

1. publication of announcements regarding property put up for auction;

2) conclusion of a non-disclosure agreement between the seller and the potential buyer regarding rights (requirements) under bank loan agreements or microcredit agreements sold on the electronic trading platform;

3) disclosure by bidders of information regarding the property put up for auction in the manner determined by the regulatory legal act of the authorized body;

4) approval and introduction of changes by bidders to the draft purchase and sale agreement in relation to the property put up for auction;

5) approval and introduction of changes by bidders to the draft agreement for the assignment of rights (claims) under a bank loan agreement, an agreement on the provision of a microcredit, put up for auction;

6) conclusion of a purchase and sale agreement in relation to property sold at auction, in accordance with the procedure determined by the regulatory legal act of the authorized body;

7) conclusion of an agreement for the assignment of rights (claims) under a bank loan agreement, an agreement on the provision of a microcredit, sold at auction, in accordance with the procedure determined by the regulatory legal act of the authorized body;

8) publication of the results of the auctions;

9) keeping records of the actions of trading participants carried out on the electronic trading platform;

10) compliance with the requirements of the legislation of the Republic of Kazakhstan on the protection of personal data, banking and other secrets protected by law;

11) compliance with other requirements provided for by this Law and regulatory legal acts of the authorized body.

Checking the applicant for compliance with the requirements for the operator to ensure the functioning of the electronic trading platform is carried out by a commission created in accordance with the regulatory legal act of the authorized body.

4. The operator does not have the right to combine the operator’s activities with other business activities, with the exception of the following types of activities:

1. main and additional types of activities of the credit bureau (subject to appropriate permission);

2) provision of services for the provision and maintenance of specialized software in relation to the organization of trading held on an electronic trading platform;

3) marketing and statistical research.

5. The conditions and procedure for issuing a permit from the authorized body for the right to carry out the activities of the operator are determined by the regulatory legal act of the authorized body.

6. To obtain permission, the applicant submits the following documents to the authorized body:

1. an application for a permit containing information established by the regulatory legal act of the authorized body;

2. notarized copies of constituent documents if they are not available on the Internet resource of the financial reporting depository or if the authorized body can receive them through the “electronic government” web portal.

An application for a permit to carry out the activities of an operator must be considered within the time frame determined by the authorized body, but not more than seventy working days from the date the applicant submits the documents provided for in this paragraph.

7. Refusal to issue a permit for the right to carry out the activities of an operator is made by the authorized body on any of the following grounds:

1. the applicant carries out a type of activity prohibited for the operator in accordance with this Law;

2) the applicant’s failure to comply with the requirements established by this article, Articles 15-18 of this Law and the regulatory legal acts of the authorized body;

3) if in relation to the applicant there is a court decision that has entered into legal force, prohibiting the applicant from carrying out the activities of an operator;

4) failure to eliminate the comments of the authorized body on the submitted documents within the prescribed period.

8. Reorganization and liquidation of the operator are carried out in the manner prescribed by the laws of the Republic of Kazakhstan.

Article 15-20. Features of state regulation, control and supervision of the activities of operators

For the purpose of state regulation, control and supervision of the activities of operators, the authorized body:

1. adopts regulatory legal acts binding on operators in the field of regulating the activities of the operator and the functioning of the electronic trading platform;

2) issues or refuses to issue a permit to carry out the operator’s activities;

3) sends written orders to eliminate identified violations of the requirements of this Law and regulatory legal acts of the authorized body regulating relations related to the activities of the operator and the functioning of the electronic trading platform, including in the event of failure to provide in a timely manner the information necessary for the authorized body to carry out its control and supervisory functions;

4) applies sanctions to operators in the manner and on the grounds established by this Law;

5) considers requests from individuals and legal entities regarding the activities of the operator and the functioning of the electronic trading platform;

6) performs other functions provided for by the legislation of the Republic of Kazakhstan.

Article 15-21. Written order and sanctions

1. In case of violation of this Law and the regulatory legal acts of the authorized body regulating relations related to the activities of the operator and the functioning of the electronic trading platform, the authorized body has the right to send a written order to the operator.

A written order is an instruction to the operator to take mandatory corrective measures aimed at eliminating identified violations and (or) causes, as well as the conditions that contributed to their occurrence, within a specified period of time, and (or) the need to submit within a specified period of time an action plan to eliminate identified violations and (or) causes, as well as conditions that contributed to their occurrence (hereinafter referred to as the action plan).

The action plan, submitted within the period established by the written order, indicates descriptions of violations, the reasons that led to their occurrence, a list of planned activities, the timing of their implementation, as well as responsible officials.

2. An appeal against a written order of the authorized body is carried out in the manner prescribed by the laws of the Republic of Kazakhstan.

An appeal against a written order of the authorized body does not suspend its execution.

3. The operator is obliged to notify the authorized body about the implementation of the measures specified in the written order within the time limits specified in the written order.

If it is not possible to eliminate the violation within the time limits established in the action plan or written order, for reasons beyond the control of the operator, the deadline for execution of the action plan or written order may be extended by the authorized body in the manner determined by the regulatory legal act of the authorized body.

4. As sanctions, the authorized body has the right to apply a sanction to the operator in the form of suspension of the permit to carry out the operator’s activities or deprivation of the permit to carry out the operator’s activities on the grounds established by this article.

5. The validity of the permit for the right to carry out the operator’s activities is suspended by the authorized body for a period of up to six months on one of the following grounds:

1. failure to comply with the requirements established by this Law and (or) the regulatory legal act of the authorized body;

2) establishing a discrepancy with the validity of the documents that served as the basis for issuing the permit;

3) systematic (three or more times within twelve consecutive calendar months) failure to comply with written orders of the authorized body to eliminate violations of the requirements of this Law and (or) regulatory legal acts of the authorized body regulating relations related to the activities of the operator and the functioning of the electronic trading platform.

6. Suspension of the permit to carry out the activities of an operator entails a ban on carrying out activities as an operator.

7. The decision to suspend the permit for the operator’s right to carry out activities must indicate the grounds and period for suspension of the permit. The validity of the said permit is considered suspended from the day the relevant decision of the authorized body is brought to the attention of the operator’s executive body.

An operator whose permit to carry out operator activities has been suspended is obliged to fulfill its obligations under agreements previously concluded on the electronic trading platform.

8. Deprivation of permission to carry out the operator’s activities is carried out by the authorized body on one of the following grounds:

1. failure to eliminate the reason why the authorized body suspended the permit to carry out the operator’s activities;

2) repeated (two or more times) suspension during the last twelve months of the operator’s permit to carry out activities;

3) provision by the operator of knowingly false information when obtaining permission to carry out the operator’s activities;

4) the presence of a court decision that has entered into legal force prohibiting the operator’s activities;

5) decision on voluntary or forced liquidation of the operator.

9. Termination of the permit for the right to carry out the operator’s activities is carried out on the grounds provided for by the Law of the Republic of Kazakhstan “On Permits and Notifications”.

10. An operator deprived of permission to carry out the activities of an operator is not entitled to carry out the activities of an operator.

Chapter 2-4. Behavioral supervision

Footnote: Footnote. The law was supplemented by Chapter 2-4 in accordance with the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Article 15-22. Responsible business practices in the financial market

1. Subjects of behavioral supervision, when interacting with consumers of financial services, are required to comply with responsible business practices in the financial market, which include:

2) disclosure of information about financial products;

3) prevention of unfair practices in the financial market at all stages of interaction with consumers of financial services;

4) accepting responsibility for the activities of authorized agents;

5) consideration of requests from consumers of financial services;

6) increasing the level of financial literacy of consumers of financial services, including through the development and implementation of appropriate measures.

The requirements established by subparagraphs 2) and 3) of part one of this paragraph apply to authorized agents.

2. Requirements for responsible business practices in the financial market are established by regulatory legal acts of the authorized body.

Article 15-23. Financial Product Management

Note FROM! Article 15-23 comes into force on July 1, 2026 by the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (text excluded).

Article 15-24. Financial Product Disclosure

Note FROM! Article 15-24 comes into force on July 1, 2026 by the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (text excluded).

Article 15-25. Preventing unfair practices in the financial market

1. Subjects of behavioral supervision when providing financial products are obliged to prevent unfair practices in relation to consumers of financial services.

2. Types and signs of unfair practices, the procedure for identifying unfair practices by subjects of behavioral supervision are determined by the requirements for the implementation of banking activities, the requirements for the implementation of insurance activities by an insurance organization, a branch of an insurance organization - a non-resident of the Republic of Kazakhstan, the rules for the implementation of brokerage and (or) dealer activities in the securities market, the procedure for the broker and (or) dealer to conduct banking operations, the requirements for the implementation of microfinance activities, approved by the authorized organ.

3. Subjects of behavioral supervision develop a remuneration policy for their employees aimed at preventing unfair practices in relation to consumers of financial services.

Article 15-26. Responsibility of behavioral supervision subjects for the activities of authorized agents when providing financial products

Subjects of behavioral supervision, when providing financial products through authorized agents, are obliged to:

1. maintain a register of authorized agents in the manner established by the internal document of the subject of behavioral supervision;

2) ensure the professional competence of authorized agents necessary to provide financial products;

3) exercise control over compliance by authorized agents with the requirements of the legislation of the Republic of Kazakhstan and internal documents of the subject of behavioral supervision governing the provision of financial products.

Article 15-27. Consideration of requests from financial services consumers

Subjects of behavioral supervision are required to consider and make decisions on requests from consumers of financial services related to their financial products and (or) the activities of authorized agents, in the manner determined by the legislation of the Republic of Kazakhstan and regulations of the authorized body.

Chapter 2-5. The procedure for pre-trial settlement of disputes among consumers of financial services. Financial ombudsman, his status, procedure for election and early termination of his powers, financial ombudsman service

Footnote: Footnote. The law is supplemented by Chapter 2-5 in accordance with the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (shall be enforced upon expiration of sixty calendar days after the day of its first official publication).

Article 15-28. Pre-trial dispute resolution procedure

Note FROM! Article 15-28 comes into force on 01/01/2027 by the Law of the Republic of Kazakhstan dated 01/16/2026 No. 259-VIII (text excluded).

Article 15-29. Financial Ombudsman

Note FROM! Article 15-29 comes into force on January 1, 2027 by the Law of the Republic of Kazakhstan dated January 16, 2026 No. 259-VIII (text excluded).

Article 15-30. Financial Ombudsman Service

Note FROM! Article 15-30 comes into force on 01.01.2027 by the Law of the Republic of Kazakhstan dated 16.01.2026 No. 259-VIII (text excluded).

Article 15-31. Financial Ombudsman Service Board

Note FROM! Article 15-31 comes into force on 01.01.2027 by the Law of the Republic of Kazakhstan dated 16.01.2026 No. 259-VIII (text excluded).

Article 15-32. Funding a financial ombudsman service

Note FROM! Article 15-32 comes into force on 01.01.2027 by the Law of the Republic of Kazakhstan dated 16.01.2026 No. 259-VIII (text excluded).

Article 15-33. The procedure for considering appeals by the financial ombudsman

Note FROM! Article 15-33 comes into force on 01.01.2027 by the Law of the Republic of Kazakhstan dated 16.01.2026 No. 259-VIII (text excluded).

Article 15-34. Features of the settlement of disputes arising from compulsory insurance contracts

Features of the settlement of disputes arising from compulsory insurance contracts are established by separate legislative acts of the Republic of Kazakhstan regulating compulsory types of insurance.

Chapter 3. Final provisions

Article 16. Responsibility for violation of the legislation of the Republic of Kazakhstan on state regulation, control and supervision of the financial market and financial organizations

Violation of the legislation of the Republic of Kazakhstan on state regulation, control and supervision of the financial market and financial organizations entails liability established by the laws of the Republic of Kazakhstan.

Article 16-1. Reorganization and abolition of the authorized body

Reorganization and abolition of the authorized body is carried out in accordance with the legislation of the Republic of Kazakhstan.

Article 17. Procedure for the entry into force of this Law

This Law comes into force on January 1, 2004.

President of the Republic of Kazakhstan