Посты с тэгом: AFSA

AFSA is closely monitoring the situation and is at the stage of assessing the degree of impact of sanctions against the SPB Exchange on the activities of International Trading System Limited (ITS).

The regulator attaches paramount importance to ensuring the stability of the AIFC financial system and protecting the interests of investors.

AFSA and ITS are developing a plan for further actions and relevant measures required to fulfill the firm’s obligations.

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 2,200 firms from 78 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 of AFSA:

+7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]

The Astana Financial Services Authority (AFSA) has issued the following Consultation Papers to seek suggestions from the market on:

1. Proposed amendments to the AIFC Collective Investment Scheme Rules on ESG Funds.

It is proposed to introduce the amendments to the AIFC Collective Scheme Framework and the AIFC Glossary to include ESG Funds as a separate type of Specialist Funds. The Consultation paper is available via this link. 

2. Revised proposed amendments to the AIFC Fees Rules: The AFSA has published revisions to earlier proposed amendments after taking into account public consultation comments on Consultation Paper AFSA-P-CE-2023-0004. The Consultation paper is available via this link.

We invite comments from interested stakeholders.

The deadline for providing comments on the proposed framework is 2 December 2023. 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 Regulatory Office of AFSA has issued a “Dear SEO Letter” addressed to regulated firms engaged in the investment business (defined in AIFC Glossary as PRU Investment Firms) on selected conduct of business matters. In this letter, AFSA has shared key findings from the recently conducted on-site inspections of Investment Firms.

The purpose of the “Dear SEO Letter” is to draw attention of existing and prospective Investment Firms to common problem areas in observing the AIFC Conduct of Business Rules, as well as provide tips on how to comply with the conduct of business requirements.

AFSA’s Regulatory Office will continue issuing “Dear SEO Letters” to foster communication with the supervised community and inform Authorised Firms of the new findings, developments, insights and other updates.

AFSA’s Acting Chief Regulatory Officer Valikhan Gusmanov: “Communication of this nature plays an important role in fostering a collaborative and coherent relationship between regulatory authorities and market stakeholders. By facilitating the exchange of information, insights, and perspectives, this type of communication promotes transparency, enhances regulatory compliance, and ultimately contributes to the stability and sustainability of the market ecosystem.”

To read the “Dear SEO Letter” addressed to Investment Firms please follow the link.

AFSA jointly with the State Revenue Committee of the Ministry of Finance of Kazakhstan has developed and endorsed the Guidance on the Rules on the substantial presence of the AIFC participants applying tax exemptions for the payment of corporate income tax, value added tax.

The Guidance aim to provide clear definition of three mandatory requirements, such as core income generating activities, adequate amount of operational expenses and adequate number of qualified employees. The document also defines the form of economic study of the project to be submitted by AIFC participants and the submission deadline.

The Guidance has undergone review and has been approved by the OECD’s Forum on harmful tax practices (FHTP). It provides detailed instructions on how to meet the requirements outlined in the Substantial Presence Rules. This Guidance is expected to provide greater certainty to AIFC participants in completing their tax returns and contribute to AIFC’s enhanced transparency and alignment with international standards.

AFSA and the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan adopted the Substantial Presence Rules in December 2021. Adoption of the Rules is an important step towards ensuring that the AIFC is compliant with global transparency standards for tax purposes and that the AIFC jurisdiction is not used for harmful tax practices.

In January 2017, Kazakhstan joined the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) under which it commits to comply with minimum four standards contained in OECD Action 5, including Harmful tax practices. To comply with this standard and prevent tax base erosion and profit shifting, the AIFC adopted the Substantial Presence Rules.

Reference: 

The OECD Forum on Harmful Tax Practices (FHTP) conducts reviews of preferential regimes since its creation in 1998 in order to determine if the regimes could be harmful to the tax base of other jurisdictions.

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 2,200 firms from 78 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 of AFSA:

+7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]

AFSA has waived the requirement for cryptoexchanges and other providers licensed to operate in AFSA’s Fintech Lab to seek an approval from AFSA to admit Digital Assets that are provided within a “Green List” to trading on their trading platforms.

AFSA has issued the relating Notice No. AFSA-F-NB-2023-0007, which refers to a list of 67 Digital Assets which are now admitted to trading throughout the testing period of Digital Asset Trading Facilities licensed in AFSA’s FinTech Lab.

FinTech Lab Participants wishing to provide Financial Services with these Digital Assets may now notify AFSA in advance instead of seeking individual regulatory approvals. The list may be extended by AFSA if it approves new Digital Asset admission applications.

AFSA Chief FinTech Officer Yerkegali Yedenbayev: “The Notice is a step forward towards supporting responsible and transparent innovation with Digital Assets at AFSA FinTech Lab.”

Full text of the Notice is available at this link.

The list of Digital Assets is available at this link. 

In the first half of 2023 the number of fund managers at AIFC has grown to 30 (up from 25 in first half of 2022), with AIFC continuing to be the jurisdiction of choice for large firms. The dynamics of growth of fund management companies is the best indicator of investment appeal of a country and the figures shown is evidence that AIFC is turning into a regional investment hub.

Assets under Advisory went up by 437% in the first half of 2023, while Assets under Management increased by 43% compared with the same period last year.  Additionally, assets of investment funds saw a 199% rise and investments of brokerage clients secured an increase of 721% compared to a similar period last year.

In June this year the enhancements to the AIFC Asset Management Framework were introduced, which can be considered as a significant step in supporting the growing asset management industry in the AIFC. These enhancements are geared towards aligning AIFC with evolving global trends, catering to the needs of investors, and ensuring a competitive edge in the international financial landscape.

AIFC introduced Limited Partnerships and Protected Cell Company as new types of fund vehicles for fund incorporation. Besides, AIFC expanded the list of Specialist Funds, which means that more fund structuring options became available for fund managers: Umbrella Fund, Fund of Funds, Master-Feeder Structure.

Chief Executive Officer of AFSA Nurkhat Kushimov: “Smart and efficient investing are the fundamentals of building wealth for individuals and economies. When the groundwork such as predictable regulations is there for investments to work for people and the country, then investing becomes easy to do. And this is exactly what AFSA does – our role is to build the necessary infrastructure for unimpeded investment flows.”

AFSA is the sole jurisdiction in the region to offer businesses a comprehensive legal regime for attracting, implementing and protecting investments based on AIFC Law’s principles, norms and precedents of the law of England and Wales and standards of the world’s leading financial centres.

Reference: 

Assets under Advisory (AUA) means the market value of the client’s portfolio, for which the client seeks advice from the investment advisor.

Assets under management (AUM) is the total market value of the investments managed by a person or entity on behalf of investors.

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 2,200 firms from 78 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]

The Astana Financial Services Authority (AFSA) has issued two Consultation Papers to seek suggestions from the market on the proposed:

1. Rules and mechanisms of cooperation of Unbacked Digital Asset Exchanges and/or the Centre Participants authorised to carry out digital assets-related activities with second-tier bank of the Republic of Kazakhstan (AIFC Rules). (“Rules of cooperation”). To read the paper please follow this link.
2. List, timing and procedure of report submission by digital asset exchanges of the Astana International Financial Centre (AIFC Rules). (“Rules of reporting for cryptoexchanges”). To read the paper please follow this link.

The proposals in these papers will be of interest to current and potential AIFC participants, second-tier banks of Kazakhstan as well as wider digital asset market and stakeholders.

The amendments to the Constitutional Law of Republic of Kazakhstan “On Astana International Financial Center” № 176-VII adopted on 30 December 2022 (that came into force on 01 April 2023) required implementing these Rules. These Rules are aimed to provide a legal framework for Digital Asset Service Providers cooperating with commercial banks of Kazakhstan following completion of the Pilot project for the cooperation of the cryptoexchanges with second-tier banks of Kazakhstan (“Pilot Project”).

Proposed draft Rules were developed taking into consideration feedback received from Pilot Project, Pilot Project Rules, AIFC Rules and Regulations, Acting Law of Kazakhstan and recommendations of relevant standard-setting bodies, such FATF and IOSCO.

Proposed draft Rules were developed taking into consideration feedback received from Pilot Project, Pilot Project Rules, AIFC Rules and Regulations, Acting Law of Kazakhstan and recommendations of relevant standard-setting bodies, such FATF and IOSCO.

The proposed amendments in this Consultation Paper on Rules of cooperation contain the following proposals regarding the:

• Rules describing procedures for opening of the accounts in commercial banks of Kazakhstan by cryptoexchanges and other digital asset service providers authorized in AIFC;
• Client classification, capital, admission of digital asset to trading, client asset segregation requirements and reference to other AIFC rules and regulations;
• Documents (or reference to Acting law of Kazakhstan) that must be requested by commercial banks of Kazakhstan at the opening of account from cryptoexchanges and DASPs;
• Anti-money laundering and terrorist financing requirements that are applied during establishment of business relations with cryptoexchanges and DASPs;
• Reporting requirements by second-tier banks of Kazakhstan to NBRK;
• Prohibitions or limitations on certain digital asset-related products on Retail clients – residents of Kazakhstan.

The proposed amendments in this Consultation Paper on Rules of reporting for cryptoexchanges contain the following proposals regarding the:

• detailed requirements on cryptoexchanges to disclose financial and other performance data to AFSA and NBRK.
• submission on a monthly basis data on trading volumes, number of clients, volume of custodied assets etc.

We invite comments from interested stakeholders.

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 Guidance clarifies principles and framework under which authorisation to perform the activities that are regulated under the AIFC Financial Services Framework Regulations are required.

The Guidance may be of interest to potential applicants for a licence and existing licence holders who seek modifications to the licence.

In addition to the regulatory perimeter, the Guidance contains provisions on the AIFC currency perimeter, which sets boundaries for offering services to the residents of the Republic of Kazakhstan and is regulated by the AIFC Rules on Currency Regulation and Provision of Information on Currency Transactions in the AIFC.

The Guidance includes the following chapters:

1. Introduction – This chapter gives introduction on the application, purpose, overview and status of the Guidance, brief description on the acting Law of the AIFC, terms of updating the Guidance, defined terms and list of general guidance to be found in the Guidance;
2. Authorisation (Getting Regulated) – This chapter contains several big sections with description of general requirements and provisions related to becoming regulated by AFSA.

• Financial Promotion and Communication – This chapter describes AFSA’s approach to financial promotion, gives examples of communications to be considered as financial promotion;

1. Currency Regulation – This chapter outlines the currency regulatory perimeter, currency residency, services and transactions of the AIFC participants and reporting on them;
2. Unregulated Activities – This chapter gives brief guidance about AFSA’s approach to unregulated activities;
3. Miscellaneous – This chapter gives guidance on certain AML and CFT requirements applicable to firms if their activities constitute them being Designated Non-Financial Business and Profession.

The full Guidance is available at this link. 

AFSA staff’s capstone project on Digital Asset Service Providers (DASP) has been named one of the best examples in an executive education programme by Cambridge Centre for Alternative Finance and Cambridge Judge Business School. Almas Serikuly, Gauhar Kattabek, Zarina Seidakhmetova, and Zhali Ualiyev participated in the Launch and Celebration of FinTech and Regulatory Innovation (CFTRI) programme, where they welcomed the next cohort of students.

Knowledge gained during the CFTRI programme helped AFSA staff draft the DASP framework which will commence on 1 January 2024. The framework aims to support innovation and fair competition as well as provide investors with significant benefits in terms of cheaper, faster and safer financial services and asset management.

Almas, Gauhar, Zarina, and Zhali have previously won the scholarships by the Asian Development Bank Institute to complete the CFTRI programme, a tutor-led online programme designed for senior policymakers and regulators at central banks, security agencies and ministries of finance.

Chief Executive Officer of AFSA Nurkhat Kushimov: “Achievements like these show that as a regulator AFSA makes a significant contribution to the development of young professionals who receive globally renowned scholarships and re-invest their knowledge in Kazakhstan.”

Dr. Dee Allen, the Head of the Capacity Building and Education Team at Cambridge Centre for Alternative Finance: “We at the Cambridge Centre for Alternative Finance are very proud of the achievements of staff from AFSA on the Cambridge FinTech and Regulatory Innovation programme. Through their capstone project, they have achieved a key objective of the programme which is to deliver a tangible outcome that can catalyse regulatory innovation. Thank you for joining us to welcome the new Cohort 12 participants of the CFTRI programme.”

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 2,100 firms from 79 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 of AFSA:

+7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]