AFSA Announces a Transitional Period for Fund Managers of Non-Exempt Funds

The Astana Financial Services Authority (AFSA) announces a transitional period for Domestic Fund Managers of Non-Exempt Funds to appoint a Fund Administrator. Under a class modification of Rule 8.2(a) of the AIFC Collective Investment Scheme Rules, these Fund Managers may operate Non-Exempt Funds, other than Real Estate Investment Trusts, until 31 July 2027 without the obligation to appoint a separate Fund Administrator. During this transitional period, the Fund Administration function may be performed by the Fund Manager. As of 31 July 2027, the Fund Manager and Fund Administrator functions must be carried out separately in accordance with the applicable regulatory requirements. 

The AIFC Collective Investment Scheme Rules require Non-Exempt Funds to appoint both an Eligible Custodian and a Fund Administrator, each acceptable to AFSA. While the requirement to appoint an Eligible Custodian remains unchanged, AFSA has historically considered requests for relief from the requirement to appoint a separate Fund Administrator on a case-by-case basis. As the market for fund administration services within the AIFC continues to develop, AFSA has replaced this approach with a transitional arrangement applicable to all Domestic Fund Managers on the same terms.  

During the transitional period, a Fund Manager whose Fund does not have a separate Fund Administrator must: 

• perform the Fund Administration function itself, ensuring that this function is carried out independently from the management of the Fund’s portfolio; 

• disclose in the Fund’s Prospectus that it is performing the Fund Administration function and that the Fund will be required to appoint a separate Fund Administrator by 1 August 2027; and 

• notify AFSA in writing, no later than 31 March 2027, of the Fund Administrator it proposes to appoint and the intended date of appointment. 

The class modification is a temporary measure and will not be extended or renewed. AFSA does not intend to grant any further waivers or modifications of the requirement for Non-Exempt Funds to appoint a Fund Administrator. Fund Managers operating Non-Exempt Funds without a Fund Administrator acceptable to AFSA on or after 1 August 2027 should expect supervisory and, where appropriate, enforcement action by AFSA. 

The notice on the class modification may be found via this link. 

Reference:    

The Astana Financial Services Authority (AFSA) is the independent regulator of the Astana International Financial Centre (AIFC), established in accordance with the Constitutional Law of the Republic of Kazakhstan “On the Astana International Financial Centre” for the purposes of regulating financial services and related activities in the AIFC. AFSA administers the AIFC Regulations and Rules and is responsible for the authorisation, registration, recognition, and supervision of financial firms and market institutions in the AIFC. afsa.kz     

The Astana International Financial Centre (AIFC) is an independent jurisdiction where investors and businesses meet emerging opportunities of Kazakhstan and Central Asia in a transparent and sustainable environment backed by the principles of English Common Law. aifc.kz     

Public Relations and Communications Division of AFSA, [email protected]