The Astana Financial Services Authority has introduced a dedicated regime for low-risk financial services firms in the Astana International Financial Centre (AIFC). The new framework, grounded in AFSA’s risk-based regulation approach, addresses the unique needs of boutique financial firms, offering them a streamlined regulatory process. It recognises that businesses with limited scope and complexity do not pose the same risks as larger entities. By easing governance and operational requirements, AFSA aims to support the growth of these firms while maintaining robust oversight. The regime is designed to reduce the regulatory burden without compromising financial integrity, ensuring a more efficient, competitive financial ecosystem within the AIFC.
The proposed regime sets criteria for identifying entities eligible to be classified as low-risk financial services firms. One of the key regulatory reliefs under this regime is the flexibility in forming the Governing Body. For such firms, Controllers (natural persons), Senior Executive Officers, either individually or jointly with Controllers and/or other Approved Individuals, may fulfil the role of the Governing Body. Additionally, the mandatory appointment of a Finance Officer is waived for entities offering advisory and arranging services, provided they have an adequate accountancy arrangement in place. The regime further allows the outsourcing of Controlled Functions[1], thereby permitting the firms to outsource certain Controlled Functions to third-party service providers.
The proposed regime for low-risk financial services firm is applicable for both new applicants and existing Authorised Firms falling under the scope of this regime. The existing Authorised Firms seeking to be classified as low-risk financial services firms are required to contact the relevant Supervision Relationship Manager.
The Policy Statement on the approach of the Astana Financial Services Authority to low-risk financial services firms, has been published on the AFSA website.
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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 3200 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] A function of an Authorised Person that may only be carried out by an Approved Individual.
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