Посты с тэгом: AFSA

The Astana Financial Services Authority (AFSA) has issued this Consultation Paper to seek suggestions from the market on the proposed ESG Debentures framework.

The framework introduces minimal standards of regulation and requirements for issuance and offering of green and sustainable debt instruments including sukuk under an overarching concept of the “AIFC ESG Debentures”. The intention is to provide clear guidelines to issuers, making it simpler to design and market these financial products while also helping investors identify sustainable investing opportunities.

The proposals in this paper will be of interest to current and potential AIFC participants who are interested in issuing or offering sustainable bonds and/or sukuk in or from the AIFC, including but not limited to Authorised Market Institutions, Authorised Firms and legal advisors.

We invite comments from interested stakeholders.

The deadline for providing comments on the proposed framework is 29 July 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-2024-0008-from-28-june-2024-on-the-proposals-to-the-aifc-esg-debentures.

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 2,700 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 the Consultation Paper on proposals to enhancements to Credit Rating Agencies framework to seek public’s opinion.

Credit Rating Agencies (CRA) play a critical role in promoting transparency and efficiency in financial markets by providing independent assessments of credit risk and help enhance the safety and soundness of the financial system by providing insights into risk exposures and guiding regulatory actions to maintain stability. Investors and financial institutions heavily rely on credit ratings to make informed investment decisions.

Based on the analysis of best international practices, AFSA proposes two options for further enhancement of the CRAs framework in the AIFC: (1) transition of CRAs from being an Ancillary Services Provider to an Authorised Firm and further enhancement of the existing regulation, and (2) maintaining the current practice of treating CRAs as Ancillary Services Providers with further enhancement of the existing regulation. These proposals aim to refine the regulatory environment for CRAs, ensuring robust and effective supervision and enhancing the quality and reliability of credit ratings.

The proposals in this paper will be of interest to CRAs, Authorised Persons, legal entities seeking credit ratings from CRAs, all users of credit ratings and any other interested stakeholders, including government and regulatory authorities in Kazakhstan.

We invite comments from interested stakeholders.

The deadline for providing comments is 28 July 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 this link: https://orderly.myafsa.com/articles/consultation-paper-afsa-p-ce-2024-0007-from-27-june-2024-on-proposals-to-enhancements-to-credit-rating-agencies-framework.

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 2,700 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 a Consultation Paper on the proposed AIFC treasury framework to seek suggestions from the market.

AFSA proposes developing a tailored framework for Corporate Treasury Centres (CTCs), which usually help multinational corporations in achieving cost-savings, managing liquidity across various subsidiaries within a region, improving cash management efficiency, conducting hedging and investment operations amongst other benefits.  CTC operations are proposed to be part of the AIFC Collective Investment Scheme Rules with less stringent provisions in relation to a Fund Manager of the CTC Fund as CTCs do not pool assets from non-Group member companies.

The proposals in this paper will be of interest to current or potential applicants, such as multinational corporations, ancillary service providers and professional advisors, seeking to engage in conducting regional treasury activities in or from the AIFC.

The deadline for providing comments is 26 July 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-2024-0005-from-26-june-2024-on-the-aifc-treasury-framework.

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 2,700 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]

AFSA has registered Fonte Emerging Markets Umbrella Fund OEIC Limited as the first Umbrella Fund in AIFC, which represents an investment vehicle comprising several Sub-Funds, each with its unique investment objectives and strategies, while remaining as a single legal entity.

The sub-funds represent distinct investment portfolios within the main Fund, each with its own investment objectives, strategies, and assets. Thus, the Fund utilises internal mechanisms to segregate the assets and liabilities of the Sub-Funds.

Umbrella Funds are considered beneficial for investment firms for a number of reasons. One of them is being that it allows for economies of scale, as pooling the assets of multiple Sub-Funds together can lead to lower operating costs. This strategy is particularly advantageous for smaller investment firms, which might otherwise struggle with the financial and administrative burdens associated with managing multiple standalone Funds.

In addition to cost savings, an Umbrella Fund also offers flexibility in terms of the types of investment products that can be offered. Investment Managers and Advisors can create a variety of Sub-Funds that cater to different investment strategies and asset classes, allowing them to meet the needs of a wider range of clients. This can be particularly useful for firms that want to offer, for example, a range of socially responsible investment options, as they can create Sub-Funds focused on specific environmental, social, and governance (ESG) criteria.

Another advantage of an Umbrella Fund is that it allows for easier administration and management. Since all the Sub-Funds operate under a single legal and organisational structure, there is a unified set of rules and regulations to follow. This simplifies compliance with regulatory requirements for Investment Managers and Advisors, ensuring that all investment products are managed consistently. The streamlined administrative framework reduces the complexity and potential for errors, making the overall management process more efficient and effective.

AFSA Chief Executive Officer Nurkhat Kushimov: “Regulations that enable new types of Fund structures mean more options for investors and consequently greater economic diversification. As our regulatory environment at AFSA continues to evolve, we come up with more advanced concepts providing better value for markets and consumers.”

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 2,700 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]

A “Sanctions Training: International and Regional Insights” has taken place at the Astana International Financial Centre (AIFC). The workshop convened a community of compliance and anti-money laundering (AML) professionals from amongst the AIFC participants and beyond. It focused on the sanctions regimes implemented by the UK and US.

The event was organised by the British Embassy in Astana, the Astana Financial Services Authority (AFSA), Eldwick Law, Outer Temple and Unicase Law Firm.

The training was designed to arm employees with the knowledge and skills necessary to adapt effectively to ongoing changes. It covered such topics as designated persons, ownership and control, financial and trade sanctions, enforcement and compliance within the UK context, the role of sanctions in litigation and arbitration as well as provided an overview of secondary sanctions in the US context.

Managing Partner at Unicase Law Artem Timoshenko: “I find the topic of the training most relevant and interesting because economic sanctions as a type of government policy is one of the most problematic themes in the context of international relations. Nowadays we can observe that most countries don’t have any specific national legislation to define the rules of behavior within the country to comply with the sanctions regime and not to fall under secondary sanctions, but there are lots of obligations for non-sanction countries such as following the new rules of trade. Due to increasing demand from clients to Unicase for compliance with and understanding of economic sanctions I am convinced that it is a great opportunity for local business to establish new methods and due-diligence algorithms.”

Barrister at Outer Temple Chambers Alex Haines: “The training is designed to assist the participants in making their day-to-day practice more efficient so that they can provide better value to their clients.”

Rashid Gaissin, Partner at Eldwick London Office: “I travelled across the region intensively including Kazakhstan, Uzbekistan, Turkey, and the United Arab Emirates over the last 10 months. We were asked everywhere about the sanctions, their application, consequences for non-compliance etc. We thought it would be great to put together the training on sanctions to get to the bottom of many tricky issues hence the idea of what we plan to discuss now in Astana”.

AIFC’s AML/CFT and Sanctions systems and controls are risk-based supervision model comprising the main lines of prevention and protections, such as conducting due diligence and disclosure of ultimate beneficial ownerships at registration and authorisation stages; firms’ managers are examined for professional compliance while Money-Laundering Reporting Officers are interviewed to ensure they are fit and proper; firms are assigned appropriate risk ratings and, if necessary, prescribed “Risk Mitigation Programmes” (RMP), which is a list of requirements and recommendations for an applicant firm. Only after the firm’s mandatory fulfillment of their RMP it can proceed to operating at AIFC. Subsequently, firms are placed under the supervision of case managers who conduct ongoing monitoring, with remote and on-site scheduled or unscheduled inspections. It is important to note that AFSA has sufficient powers, including the right to demand any information and to impose various disciplinary and financial sanctions of a proportionate nature for non-compliance with AIFC’s AML/CFT requirements.

AFSA Chief Executive Officer Nurkhat Kushimov: “Gaining regional and international insights into sanctions helps boost protections against sanctions risks. By sharing expertise and experience with respect to sanctions regimes that are developing at such a rapid pace as today we help ensure that jurisdictions continue to deliver fair and transparent financial and capital markets.”

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 2,700 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]

AFSA announces prudential relief measures for firms authorised to carry out the regulated activity of Managing a Collective Investment Scheme in respect of Exempt Funds[1]. The respective class modification took effect on 24 April 2024 and may be found via this Notice.

The relief measures grant a grace period to Firms to comply with the Minimum Capital Requirement for the period of implementing their Risk Mitigation Programme[2] and 24 months after its completion.

Considering that there are firms that have already implemented their RMPs and operate more than 24 months, approximately 50% of the existing and all the new Authorised Firms licensed to carry out the Regulated Activity of Managing a Collective Investment Scheme in respect of Exempt Funds will be able to enjoy this grace period.

The relief measures have been introduced because newly emerging investment firms bring fresh perspectives, novel approaches, and disruptive technologies that have the potential to reshape the industry and drive economic growth.

However, we must also acknowledge that new investment firms face a distinct set of challenges as they navigate the regulatory environment in the AIFC. Unlike established players that have years of operation in the AIFC, they often lack the scale, resources, and institutional knowledge to comply with the stringent prudential requirements.

By providing targeted regulatory relief tailored to the unique circumstances of these firms, we can level the playing field, encourage entrepreneurship, unlock their full potential, and facilitate access to capital for startups, encourage investment in innovative projects.

AFSA Chief Executive Officer Nurkhat Kushimov said: “The unveiled prudential relief measures are a significant step forward in our regulatory approach aimed at fostering a more dynamic and competitive environment in the financial sector of AIFC and are a timely facilitator of balance between safeguarding the stability and integrity of the financial system while also promoting innovation, growth, and competitiveness within the industry.”

These measures are expected to enhance the fund and fund management environment in the AIFC, increase fund managers’ competitiveness by reducing their compliance costs, increasing access to capital, and implementing AFSA’s Strategy goals.

It should also be mentioned that Authorised Firms are required to disclose the applied grace period expressly in their Offering Materials for Unitholders and disclose the firms’ Capital Resources, calculated according to Chapter 3 of AIFC Prudential Rules for investment firms.

Capital Resources refer to financial assets and reserves that an investment firm holds to meet regulatory requirements and absorb potential losses.

To have control over the financial risks and market stability in short- and mid-term periods, AFSA will keep its intervention power, outlined in Rule 2.2.3 of AIFC Prudential Rules for investment firms.

This means that when certain unfavorable scenarios unfold in the market that may affect financial stability of the firm or the market in whole, AFSA may impose requirements on investment firms to have and maintain additional amounts of Capital Resources and/or Liquid Assets.

Liquid Assets refer to assets that can be easily converted into cash without significant loss of value or disruption to the market.

Other requirements set by AIFC Prudential Rules for investment firms, including those described in Liquid Assets requirement and Reporting and Notification requirements, remain applicable for Authorised Firms.

The Astana Financial Services Authority (AFSA) alerts the public that the company calling itself “Astana Exchange” and offering cryptocurrency exchange services is a scam.

This company uses a forged licence to provide financial services. AFSA’s investigation has revealed that this company is not registered with the Astana International Financial Centre (AIFC) and does not hold a valid financial services license. Therefore, its activities are illegal.

AFSA encourages the public to check the Public Register, which contains business information of companies authorised and/or registered by AFSA. This step is important to ensure that the firm is authorised before using any financial services or products.

AFSA strongly advises that you do not respond to any communication regarding this scam, and under no circumstances should you enter into a contractual relationship with this firm, send or give any money to any party in connection with this scam.

If you have any concerns about the authenticity of any correspondence or you suspect that you have been contacted by someone involved in a scam, we suggest that you address your concerns directly to AFSA. You can do this by using the online form available on our website.

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 2,700 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) and the National Digital Assets Commission of El Salvador (CNAD) signed a Memorandum of Understanding (MoU) in May 2024, aimed at enhancing cooperation, mutual assistance, and the facilitation of information exchange within the digital assets markets across their respective jurisdictions. This brings AFSA’s total of international agreements with fellow regulators to 54.

The document signifies the commitment of both regulatory bodies to strengthen their collaboration. The main objective is to promote cross-border cooperation within the financial industry, foster consistent high-level communication, and facilitate the sharing of information regarding financial markets.

The Astana International Financial Centre actively supports innovations and promotes the development of innovative approaches in the financial sector, contributing to sustainable growth and progress. In particular, significant efforts have been made in recent years to create a digital assets ecosystem in the AIFC and Kazakhstan. As an example, a pilot project that tested fiat gateways between AIFC-licenced cryptoexchanges and Kazakhstan’s commercial banks brought a total of transactions within the pilot to an amount worth around 240 mln USD and served as a foundation for a number of regulatory initiatives, such as Rules on interaction of Digital Asset Service Providers and commercial banks of Kazakhstan, a Rulebook on Digital Asset Activities, the Security Token Offering Framework, and the Stablecoins Framework.

To further test new products and services, AFSA offers its FinTech Lab (regulatory sandbox) platform to experiment with novel projects in a secure way. As of today, there are 18 participants in the sandbox, where the majority (14) are digital asset service providers. Trading volume of Digital Asset Services Providers in 2023 stood at 320 mln USD, while in the first quarter of 2024 this figure reached 232 mln USD.

AFSA Chief Executive Officer Nurkhat Kushimov said: “The rapid flow of goods, services, people and finance across borders is testing the effectiveness and the capacity of domestic regulatory frameworks. Combined with increased globalisation and digitalisation, this pace of development presents policy makers and regulators with challenges that are difficult to deal with in isolation. Regulatory cooperation helps to bridge the gaps and align regulations for faster and safer transactions.”

Juan Carlos Reyes, president of CNAD, believes that signing this type of MoU is an important milestone in a borderless, globalised economy. “We see AFSA as a pioneer in the digital assets regulatory industry, and the signing of this MoU is an important step in strengthening global regulatory authorities. Given that we work with technology that transcends geographical barriers, it’s crucial to recognise that the regulated businesses can impact each country differently. By creating agreements like this, we can ensure the adoption of best practices, identify bad actors, and, most importantly, achieve financial transparency as per global and each countries’ national requirements.”

CNAD has been instrumental in positioning El Salvador as a leader in the digital economy. Through its rigorous regulatory framework, CNAD has successfully cultivated a secure and transparent digital asset market, contributing to the nation’s financial inclusivity and economic dynamism. Notable successes include the launch of the $ESOY public offer by E-GRAINS S.A. DE C.V[1]., the approval of the innovative “Volcano Bond[2].” The commission through its sandbox project has approved over one billion dollars of real-world asset (RWA) tokenisation.

As an authoritative body for digital asset regulation, CNAD has established a comprehensive public registry, ensuring that all market participants adhere to the highest standards of operation. Its proactive approach in licensing and oversight has deterred fraudulent activities, safeguarding consumer interests and the integrity of the financial system. The commission’s commitment to fostering innovation and collaboration has been pivotal in advancing El Salvador’s digital asset sector.

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.

The National Commission of Digital Assets of El Salvador (CNAD) serves as a pivotal government institution entrusted with the oversight and regulation of the digital asset landscape in El Salvador. This encompasses cryptocurrencies, tokens, and other digital financial instruments. CNAD’s primary objective is to uphold security, transparency, and trust within the digital asset market, thereby fostering financial inclusivity and driving economic advancement.

Over 2,700 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]

[1] the issuance of $ESOY tokens backed by soybeans.

[2] the use of geothermal energy from a volcano to power Bitcoin mining.