RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of November 2, 2017 No. 208

About the measures taken by the large member of the managing director of investment portfolio on maintenance of coefficients of sufficiency of equity of the managing director of investment portfolio

According to Item 5 of article 49 of the Law of the Republic of Kazakhstan "About the security market" (further - the Law on the security market) the Board of National Bank of the Republic of Kazakhstan DECIDES:

1. Establish the following measures for maintenance by the large member of the managing director of investment portfolio of coefficients of sufficiency of equity of the managing director of investment portfolio (further - the Managing director):

1) development and approval by the large participant Upravlyayushchego who is the legal entity, the internal documents establishing obligatory for observance by the large participant of condition and procedure for application of measures for maintenance of coefficients of sufficiency of equity of Upravlyayushchego;

2) permanent ensuring necessary value of coefficients of sufficiency of equity of the Managing director established by the paragraph the second Item 1 of the resolution of Board of National Bank of the Republic of Kazakhstan of April 27, 2018 No. 79 "About establishment of types of prudential standard rates for the organizations performing activities for management of investment portfolio, approval of rules and method of calculation of values of the prudential standard rates obligatory to observance by the organizations performing activities for management of investment portfolio" (it is registered in the Register of state registration of regulatory legal acts at No. 17008) (further - the resolution No. 79);

3) operational ensuring necessary value of coefficients of sufficiency of equity of the Managing director established by the paragraph the second Item 1 of the resolution No. 79.

2. Measures of permanent ensuring necessary value of coefficients of sufficiency of equity of the Managing director provide:

1) quarterly assessment of financial condition of the Managing director on the basis of the analysis of the quarterly financial reporting of the Managing director for the purpose of check of observance of the prudential standard rates established concerning the Managing director, and also risks assessment, influencing decrease in coefficients of sufficiency of equity of the Managing director;

2) quarterly assessment of forecast values of sufficiency of equity of the Managing director;

3) annual control of ensuring efficiency of functioning of risk management system of the Managing director, including assessment of conformity of the specified systems to requirements, stipulated in Clause 49-1 of "The law on the security market";

4) annual control of availability at the Managing director of the procedures determining need of application of the measures of operational providing provided in Item 3 of this resolution;

5) quarterly control of observance by the Managing director of obligations under the contracts for asset management signed with clients, and also politicians of investment of own assets;

6) taking measures, the provided plan of recapitalization of the financial position of the Managing director Managing in case of possible deterioration constituted according to Rules of issue, withdrawal of consent to acquisition of the status of the large member of bank, bank holding, the large member of the insurance (reinsurance) organization, insurance holding, the large member of the managing director of investment portfolio and requirements to the documents submitted for receipt of the specified consent, approved by the resolution of Board of National Bank of the Republic of Kazakhstan of February 24, 2012 No. 67, registered in the Register of state registration of regulatory legal acts at No. 7552.

3. Measures of operational ensuring necessary value of coefficients of sufficiency of equity of the Managing director provide:

1) actions for ensuring necessary value of coefficients of sufficiency of equity of the Managing director;

2) actions for change of structure of own assets and liabilities of the Managing director;

3) actions for change of organizational structure of the Managing director;

4) actions for suspension of charge and (or) dividend payout on common shares (net income allocation) of the Managing director between its shareholders;

5) change of structure of investment committee.

The measures of operational providing provided in this Item are applied in case of decrease in coefficients of sufficiency of equity of the Managing director and insufficiency of the measures of permanent providing provided in Item 2 of this resolution.

4. Actions for ensuring necessary value of coefficients of sufficiency of equity of Upravlyayushchego include, but are not limited to acquisition by the large participant Upravlyayushchego of the placed Upravlyayushchego's shares and payment of cost of these shares for the purpose of reduction of the size of coefficients of sufficiency of equity of Upravlyayushchego to the necessary value established by the resolution No. 79.

5. Actions for change of structure of own assets and liabilities of the Managing director are performed in type:

1) restrictions or suspensions of the transactions subjecting the Managing director to credit and (or) market risks;

2) improvements of quality of investment portfolio of the Managing director, including replacement of illiquid assets with quick assets;

3) expense reductions on servicing of obligations of the Managing director;

4) reducings administrative expenses of the Managing director.

6. Actions for change of organizational structure of the Managing director are performed in type:

1) changes of structure, reducing and liquidation of the isolated and other structural divisions of the Managing director;

2) optimizations of structure and number of workers of the Managing director, and also the different ways promoting elimination of the reasons which caused decrease in coefficients of sufficiency of equity of the Managing director.

7. Recognize invalid:

1) the resolution of Board of National Bank of the Republic of Kazakhstan of July 26, 2013 No. 200 "About approval of the Instruction about measures for maintenance by the large member of the managing director of investment portfolio of coefficient of sufficiency of equity of the managing director of investment portfolio" (registered in the Register of state registration of regulatory legal acts at No. 8697, published on October 2, 2013 in the Yuridicheskaya Gazeta newspaper No. 148 (2523);

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