GB Finance Limited and GB Insurance Limited Settle with the Astana Financial Services Authority
The Astana Financial Services Authority (AFSA) announces that it has agreed a settlement with GB Firms (GB Finance ltd. and GB Insurance ltd.) pertaining to regulatory non-compliance uncovered during supervision in 2022.
Between April-November 2022, GB Firms failed to properly comply with their systems and controls and recognised that their conduct was inconsistent with multiple rules and fundamental principles outlined in the AIFC Acts. GB Finance acknowledged deficiencies across several operational areas, including the inability to meet prudential standards, such as maintaining minimum capital adequacy ratios, adhering to restrictions on related party lending[1], and complying with limits on large exposures[2]. GB Insurance also issued captive insurance contracts outside the scope of its authorisation, admitted to non-compliance with AFSA’s core principles for Authorised Firms, as well as the AIFC Rules on Currency Regulation.
Through the acknowledgment of AFSA’s findings and the payment of financial penalties, GB Firms committed to executing remediation measures aimed at comprehensively addressing the identified cases of regulatory breach.
Reference:
The Astana Financial Services Authority (AFSA) is the independent regulator of the Astana International Financial Centre (AIFC), which is 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.
Over 3,000 firms from 82 countries are registered in the AIFC. These firms provide banking, insurance, investment, professional and other services. The range of financial services offered at the AIFC is comparable to the list of services available in long-established financial centers of the world, such as London, Hong Kong, Singapore, Dubai and others. www.afsa.kz.
The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
Contact information:
Public Relations and Communications Division of AFSA: +7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]
[1] The AIFC Banking Business Prudential Rules set specific requirements to avoid conflicts of interest in transactions with related parties.
[2] According to the AIFC Banking Business Prudential Rules, the total of the Bank’s net exposures to any counterparty or any group of connected counterparties must not exceed 25% of the Bank’s regulatory capital and the total of all of the Bank’s net large exposures must not exceed 800% of that capital.
Angela Knight appointed AFSA’s Chairperson of the Board of Directors and member of the AIFC Management Council
Angela Knight has been appointed as the Chairperson of the Board of Directors of the Astana Financial Services Authority (AFSA) and member of the AIFC Management Council. Prior to this Ms. Knight has been AFSA’s Deputy Chairperson of the Board and member of the Board of Directors since the establishment of AFSA.
Ms. Knight’s exceptional experience and reputation and her outstanding service in the financial industry globally make her an invaluable asset to the organisation.
Angela Knight also serves as board member of a number of other financial companies and has been awarded Honorary Fellowship of the Chartered Institute for Securities and Investment and the CBE[1] for her services to the financial services industry in the UK.
Angela Knight was chief executive of several trade associations, including the energy industry trade body Energy UK and the British Bankers’ Association during the banking crisis. She was also a Member of Parliament and a Treasury Minister in the 1990s.
Reference:
The Astana Financial Services Authority (AFSA) is the independent regulator of the Astana International Financial Centre (AIFC), which is 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.
Over 3,000 firms from 82 countries are registered in the AIFC. These firms provide banking, insurance, investment, professional and other services. The range of financial services offered at the AIFC is comparable to the list of services available in long-established financial centers of the world, such as London, Hong Kong, Singapore, Dubai and others. www.afsa.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
Contact information:
Public Relations and Communications Division of AFSA: +7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]
[1] Commander of the British Empire – a prominent national role in regional affairs through achievement or service to the community, or a highly distinguished, innovative contribution in his or her area of activity.
Astana Financial Services Authority and Financial Services Authority of the Sultanate of Oman Sign Roadmap to Enhance Cooperation
In a significant step towards enhancing regulatory collaboration, Mr. Nurkhat Kushimov, Chief Executive Officer of the Astana Financial Services Authority (AFSA) and H.E. Abdullah Bin Salem Al Salmi, Executive President of the Financial Services Authority of the Sultanate of Oman (FSA) have signed a Roadmap on Enhancing Cooperation. The signing took place during the Astana Finance Days 2024, marking a new milestone in the bilateral relationship between the two financial regulators.
Formalised in an official ceremony, the Roadmap is designed to deepen cooperation and facilitate the exchange of expertise in key areas such as capital markets, asset management, and digital assets. It also aims to explore the potential for mutual access to each other’s regulated markets, fostering a closer integration of financial markets in both jurisdictions.
This agreement builds upon the Memorandum of Understanding (MoU) signed between the AFSA and the FSA in 2023. The MoU laid the groundwork for mutual cooperation and the exchange of information, and the newly signed Roadmap represents a concrete step forward in realising the objectives outlined in the MoU.
Following the signing ceremony, the two authorities engaged in an overview session on regulated markets, where they exchanged insights and perspectives on the development and regulation of financial markets. This session further underscored the commitment of both parties to learning from each other’s experiences and working together to enhance the financial landscapes of their respective jurisdictions.
AFSA Chief Executive Officer Nurkhat Kushimov: “The implementation of this Roadmap is expected to facilitate closer cooperation between the AIFC and the Sultanate of Oman, not only strengthening the development of financial markets in each jurisdiction but also contributing to the overall growth and integration of financial markets in the region.”
H.E. Abdullah Bin Salem Al Salmi, Executive President of the Financial Services Authority of the Sultanate of Oman: “The signing of this Roadmap represents a significant step forward in our collaboration with the Astana Financial Services Authority. This agreement will focus on key areas such as capital markets, digital assets, raising awareness, and organizing joint events. It is a tangible outcome of the Memorandum of Understanding signed between our authorities in 2023, and it lays a solid foundation for further cooperation. We are particularly delighted to have the opportunity to conduct meetings and discussions following the signing here in Astana, prior to the Astana Finance Days Conference.”
Reference:
The Astana Financial Services Authority (AFSA) is the independent regulator of the Astana International Financial Centre (AIFC), which is 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.
Over 3,000 firms from 82 countries are registered in the AIFC. These firms provide banking, insurance, investment, professional and other services. The range of financial services offered at the AIFC is comparable to the list of services available in long-established financial centers of the world, such as London, Hong Kong, Singapore, Dubai and others. www.afsa.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
Contact information:
Public Relations and Communications Division of AFSA: +7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]
AFSA to hold regulatory townhall on 27 August at 12:00 Astana time in an online format
The Astana Financial Services Authority (AFSA) is delighted to invite you to join the Regulatory Townhall meeting, to be held on 27 August 2024 from 12:00 to 13:00 Astana time via Zoom.
During the Regulatory Townhall new frameworks and amendments to the AIFC legislation will be presented and discussed. Respective consultation papers were made available for feedback both on AIFC and AFSA websites (please refer to the link for your convenience). AFSA aims to get suggestions from the market on the regulatory approach and legislative proposals, as well as respond to the questions of the audience.
Agenda
Presentations 12:00 – 12:30:
Proposed Enhancements to the AIFC Asset Management Framework (https://orderly.myafsa.com/articles/consultation-paper-afsa-p-ce-2024-0009-from-2-august-2024-on-proposed-enhancements-to-the-aifc-asset-management-framework)
Gauhar Kattabek, Senior Associate of the Policy, Strategy and Risk Division, AFSA
ESG disclosure guidance (https://orderly.myafsa.com/articles/consultation-paper-afsa-p-ce-2024-0010-from-5-august-2024-on-consultation-paper-on-the-aifc-environmental-social-and-governance-disclosure-guidance)
Madina Maimakova, Senior Associate of the Policy, Strategy and Risk Division, AFSA
Amendments to the AIFC Rules on Qualifications necessary for employment (https://orderly.myafsa.com/articles/consultation-paper-afsa-p-ce-2024-0011-from-16-august-2024-on-proposed-amendments-to-the-aifc-act-no.gr009-of-2017-concerning-qualifications-necessary-for-employment-in-the-aifc)
Ainur Zhumatova, Director, AIFC Expat Centre
Q&A SESSION – 12:30 – 13:00
You are kindly invited to REGISTER ONLINE by 09:00 Astana time 27 August 2024.
Reference:
The Astana Financial Services Authority (AFSA) is the independent regulator of the Astana International Financial Centre (AIFC), which is 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.
Over 3,000 firms from 82 countries are registered in the AIFC. These firms provide banking, insurance, investment, professional and other services. The range of financial services offered at the AIFC is comparable to the list of services available in long-established financial centers of the world, such as London, Hong Kong, Singapore, Dubai and others. www.afsa.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
Contact information:
Public Relations and Communications Division of AFSA: +7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]
AFSA issues Consultation Paper on the proposed amendments to the AIFC Rules concerning Qualifications Necessary for Employment in the AIFC. Deadline for providing comments is 16 September 2024.
AFSA is seeking feedback from relevant stakeholders on the proposed amendments to the AIFC Rules No.GR009 of 2017 concerning Qualifications Necessary for Employment in the AIFC (the AIFC Rules).
The proposed amendments to the AIFC Rules are designed to ensure full alignment with the national requirements under the Law on Migration by mandating that both educational and experience-based criteria be met for employment within the AIFC. This approach will uphold the high qualification standards essential for maintaining the integrity and quality of the workforce within the AIFC.
The substantial proposed supplementation to the AIFC Rules is the delegation of the power to the AIFC Authority in granting waivers and modification to certain requirements of the Rules in relation to AIFC Participants, who are not engaged in carrying on a Controlled Function or a Designated Function under rules 2.2 and 2.3 of the AIFC General Rules. This will support the enforcement of the provisions of the Constitutional Statute on providing assistance in attracting foreign labour.
We invite comments from interested stakeholders.
The deadline for providing comments is 16 September 2024. Once we receive your comments, we shall consider if any refinements are required to this proposal.
AFSA prefers to receive comments by email at [email protected].
The Consultation paper can be accessed via the link: https://orderly.myafsa.com/articles/consultation-paper-afsa-p-ce-2024-0011-from-16-august-2024-on-proposed-amendments-to-the-aifc-act-no.gr009-of-2017-concerning-qualifications-necessary-for-employment-in-the-aifc
ACWA Power Kazakhstan becomes the 3000th company registered at AIFC
The number of companies registered at AIFC has reached 3,000. ACWA Power Kazakhstan has become the 3000th firm.
Saudi-listed ACWA Power is the world’s largest private water desalination company, a leader in energy transition and first mover into green hydrogen. ACWA Power is currently present in 13 countries in the Middle East, Africa, Central Asia, and Southeast Asia. Its portfolio comprises 90 projects in operation, advanced development, or under construction with an investment value of USD 94.3 billion, and the capacity to generate 65.6 GW of power and manage 8.0 million m3/day of desalinated water per day.
ACWA Power plans to build wind farm with energy storage systems with a total capacity of 1 GW in the Zhetysu region. The aim of the project is to harness abundant wind potential of country to increase the share of renewable energy sources and to help achieve carbon neutrality.
One of AIFC’s key objectives is promoting sustainable development goals, including transitioning to a low-carbon economy, attracting green investments and creating a supportive financial ecosystem.
AIFC’s growth is not only measured in numbers but also in its international reach. The Centre now includes participants from 82 countries, with the top 10 countries represented being China, Russia, the United Kingdom, the United States, Turkey, the United Arab Emirates, Singapore, India, the Netherlands, and the Republic of Cyprus. This diverse representation underscores the AIFC’s appeal as a global financial centre.
AIFC Governor Renat Bekturov: “The growth in the number of the Centre’s participants is explained by a series of factors, such as its unique legal framework based on common law principles, favorable tax conditions and a range of services to support business operations of its participants. Since its inception, the Centre has attracted companies from various sectors, including financial, technology, energy and others, thus contributing to innovation and economic development of Kazakhstan and the region”.
Companies operating in the AIFC jurisdiction derive their benefits depending on the type of organisation. The Centre’s entities operate as Authorised Market Institutions[1], as FinTech Lab[2] participants, as those carrying on Regulated Activities[3], Ancillary Services Providers[4], and others.
Authorised Market Institutions within the AIFC obtain access to a well-regulated market infrastructure with a focus on transparency and investor protection. The AIFC provides a robust legal framework and regulatory support, which enhances credibility and attractiveness of the market to global investors.
Meanwhile, the FinTech Lab offers a supportive environment for innovation in financial technology, accelerating growth and facilitating market entry.
Firms conducting regulated activities within the AIFC can leverage a comprehensive regulatory framework that is aligned with international standards. This enhances trust and confidence among clients and investors.
Entities involved in non-financial activities within the AIFC can benefit from the region’s strategic location, modern infrastructure, and business-friendly environment.
Ancillary Service Providers in the AIFC can tap into a growing financial ecosystem, providing essential support services to financial institutions.
AIFC’s participants carrying on Regulated Activities, Authorised Market Institutions, those of the FinTech Lab and Ancillary Services Providers constitute over 10% of the 3,000 participating firms.
In the first half of 2024 AFSA issued 32 licences, including 14 authorised firms in the full regulatory regime, 4 FinTech Lab participants and 14 Ancillary Services Providers (ASPs), which is over twice as many compared to the figures for 2023.
In September 2021 AIFC registered its 1,000th company and then in July 2023 it doubled in size reaching 2,000th registered firms.
Reference:
The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
The Astana Financial Services Authority (AFSA) is the independent regulator of the Astana International Financial Centre (AIFC), which is 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.
Over 3,000 firms from 82 countries are registered in the AIFC. These firms provide banking, insurance, investment, professional and other services. The range of financial services offered at the AIFC is comparable to the list of services available in long-established financial centers of the world, such as London, Hong Kong, Singapore, Dubai and others. www.afsa.kz
Contact information:
AIFC Media Relations
Ainur Issabayeva
Press secretary
Phone: +7 701 777 6558
E-mail: [email protected]
Public Relations and Communications Division of AFSA:
+7 (717) 264 73 43;
+7 7172 61-37-45
email: [email protected]
[1] an AIFC Centre Participant which has been licenced by AFSA to carry on one or more Market Activities (such as operating an exchange, a clearing house, or a loan/investment crowdfunding platform).
[2] a tailored live environment, where firms can offer innovative financial and RegTech services without being immediately subject to the full set of regulatory requirements.
[3] The Regulated Activities are financial services that need authorisation from AFSA. These include brokers and dealers, investment and fund management, banking, fund administration, providing and arranging custody, Islamic finance, and other activities including operating a representative office.
[4] Providers of professional services, that are ancillary to, but necessary for the proper functioning of the financial services industry and capital market including audit, accounting, legal, consulting and credit rating agencies.
AFSA and Kyrgyz Regulator Finnadzor sign roadmap to enhance cooperation in regulation and development of financial markets
The Astana Financial Services Authority (AFSA) and the Service for Regulation and Supervision of the Financial Market under the Ministry of Economy and Commerce of the Kyrgyz Republic (Finnadzor) have signed a 2024-2025 roadmap, which is designed to further strengthen cooperation and enable the regulators to enhance existing regulatory practices. This took place during the visit by AFSA Chief Executive Officer Nurkhat Kushimov to Bishkek.
The roadmap is focused on the exchange of experience and cooperation in the development and regulation of capital markets, such as offering and trading of securities and licensing and supervision of brokers and asset managers. The parties also agreed to explore opportunities for mutual access to each other’s markets. The roadmap also provides for a similar partnership in the area of digital assets.
On the margins of the visit the AFSA CEO had a meeting and delivered an outreach session to the representatives of stock exchanges, cryptoexchanges, DASPs and brokers of the Kyrgyz Republic, signifying broader support and interest from the industry in closer cooperation between the markets and regulators.
AFSA Chief Executive Officer Nurkhat Kushimov: “This roadmap comes as a logical step following the signing of our Memorandum of Understanding almost exactly a year ago. This cooperation is a way forward to ensure that we offer better, faster and higher-quality products and services on a regional level and support the interests of our capital markets and digital assets industries for the benefit of our both jurisdictions.”
Chairman of the Service for Regulation and Supervision of the Financial Market under the Ministry of Economy and Commerce of the Kyrgyz Republic Marat Pirnazarov: “The signing of the roadmap underscores the commitment of both parties to close cooperation and joint development of financial capabilities, which in the long run will lead to a more integrated and stable financial market in the region.
Reference:
The Astana Financial Services Authority (AFSA) is the independent regulator of the Astana International Financial Centre (AIFC), which is 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.
Around 3,000 firms from 82 countries are registered in the AIFC. These firms provide banking, insurance, investment, professional and other services. The range of financial services offered at the AIFC is comparable to the list of services available in long-established financial centers of the world, such as London, Hong Kong, Singapore, Dubai and others. www.afsa.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
Contact information:
Public Relations and Communications Division of AFSA: +7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]
AFSA issues Consultation Paper on the proposed AIFC ESG Disclosure Guidance. Deadline for providing comments is 6 September 2024.
The Astana Financial Services Authority (AFSA) has issued a Consultation Paper on the proposed AIFC Environmental, Social and Governance (ESG) Disclosure Guidance to seek suggestions from the market.
AFSA proposes to introduce ESG Disclosure Guidance for Banks, Fund Managers and Insurers. The proposed guidance aims to support these financial entities in integrating ESG factors into their reporting and decision-making processes, fostering a more sustainable and responsible financial ecosystem in the AIFC. As a starting point, AFSA proposes the introduction of voluntary ESG disclosure. This initial phase allows relevant firms to familiarise themselves with best practices, adapt their operations and reporting processes, and demonstrate their commitment to sustainability.
The deadline for providing comments is 6 September 2024. Once we receive your comments, we shall consider if any refinements are required to this proposal.
AFSA prefers to receive comments by email at [email protected].
The Consultation paper can be accessed via the link: https://orderly.myafsa.com/articles/consultation-paper-afsa-p-ce-2024-0010-from-5-august-2024-on-consultation-paper-on-the-aifc-environmental-social-and-governance-disclosure-guidance
AFSA issued Consultation Paper on the Proposed Enhancements to the AIFC Asset Management Framework. Deadline for providing comments is 2 September 2024.
The Astana Financial Services Authority (AFSA) has issued this Consultation Paper to seek suggestions from the market on the Proposed Enhancements to the AIFC Asset Management Framework.
The proposals in this paper will be of interest to current and potential AIFC participants who are interested in asset and fund management activities in or from the Astana International Financial Centre (AIFC).
Considering the developments in the AIFC asset management sector and insights gained during the supervision of the regulated community, this Consultation Paper contains further Enhancements to the AIFC Asset Management Framework:
Expanding the list of Specialist Funds:
Credit Funds
Digital Asset Funds
Exchange Traded Funds
Money Market Funds
Enhancements to the AIFC Venture Capital framework
Application of CIS Rules to a Centre Participant which markets a Collective Investment Scheme in or from the AIFC
Mandatory appointment of AFSA licenced Fund Administrator
Amendments in relation to tokenised Units and Funds investing in Investment Tokens or Qualified Investment Tokens.
We invite comments from interested stakeholders.
The deadline for providing comments on the proposed framework is 2 September 2024. Once we receive your comments, we shall consider if any refinements are required to this proposal.
AFSA prefers to receive comments by email at [email protected].
The Consultation paper can be accessed via the link: https://orderly.myafsa.com/articles/consultation-paper-afsa-p-ce-2024-0009-from-2-august-2024-on-proposed-enhancements-to-the-aifc-asset-management-framework
