AFSA announces measures for Authorised Firms to carry out the Regulated Activity of Managing a Collective Investment Scheme in respect of Exempt Funds[1]. As per the new approach Exempt Funds may have their Units admitted to trading on Authorised Investment Exchanges[2] of AIFC. The respective notice on class modification may be found via this link.
Prior to this change Fund Managers of only Non-Exempt Funds[3] could have their Units traded on AIFC Authorised Investment Exchanges. Admitting Exempt Funds will bring in more diverse financial instruments, connect professional investors and Fund Managers who are keen to sell their Fund Units and may consequently reduce distribution costs, raise firms’ visibility and contribute to their overall reputational standing in the finance industry.
AFSA Chief Executive Officer Nurkhat Kushimov: “Fund Managers will know that the distribution channels they have available to them will define how successfully they perform and help businesses grow. Previously, when Fund Managers wanted to sell large volumes of Fund Units, one of the most popular options was to use over-the-counter[4] trading. By allowing Fund Managers to sell Units of Exempt Funds we contribute to efficient product distribution, expand market reach and enhance client satisfaction.”
AFSA's strategic goal includes the continued development of fund infrastructure within the AIFC. By implementing these modifications, AFSA aims to broaden the distribution channels for Exempt Funds within the AIFC, enhance the competitiveness of the AIFC fund ecosystem, and streamline the distribution of Units for Exempt Funds.
This measure stipulates for a change in certain regulatory prohibitions[5] and will last until further notice from AFSA.
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 2,900 firms from 81 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] Exempt Fund is a Collective Investment Scheme whose Units are Offered in the AIFC only by way of a private placement to Professional Clients and in the minimum subscription amounts of US$50,000.
[2] An Authorised Investment Exchange is an AIFC Centre Participant which has been licenced by AFSA to carry on the Market Activity of Operating an Investment Exchange.
[3] A Non-Exempt Fund is any Collective Investment Scheme whose Units are Offered in the AIFC and which is not an Exempt Fund.
[4] Over-the-counter (OTC) trading is considered as a separate trading option widely used for large undertaking or transaction by large or institutional players because OTC transactions allows to discharge large volumes of assets quicker and in large blocks.
[5] specified in AIFC MAR Rules 7.1.2, AIFC FSFR 62, AFSA CIS Rules 4.2, and Chapters 2, 3, 4, 8, and 9 of AIFC COB Rules.
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