RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of August 27, 2018 No. 202

About modification and amendments in some regulatory legal acts of the Republic of Kazakhstan concerning regulation of the security market

For the purpose of enhancement of regulatory legal acts of the Republic of Kazakhstan the Board of National Bank of the Republic of Kazakhstan DECIDES:

1. Approve the List of regulatory legal acts of the Republic of Kazakhstan concerning regulation of the security market to which changes and additions are made (further - the List), according to appendix to this resolution.

2. To department of regulation of the non-bank financial organizations (Kosherbayeva A. M.) in the procedure established by the legislation of the Republic of Kazakhstan to provide:

1) together with Legal department (Sarsenov N. V.) state registration of this resolution in the Ministry of Justice of the Republic of Kazakhstan;

2) within ten calendar days from the date of state registration of this resolution its direction in the Kazakh and Russian languages in the Republican state company on the right of economic maintaining "The republican center of legal information" for official publication and inclusion in Reference control bank of regulatory legal acts of the Republic of Kazakhstan;

3) placement of this resolution on official Internet resource of National Bank of the Republic of Kazakhstan after its official publication;

4) within ten working days after state registration of this resolution submission to Legal department of data on execution of the actions provided by subitems 2), 3) of this Item and Item 3 of this resolution.

3. To management on consumer protection of financial services and external communications (Terentyev A. L.) provide within ten calendar days after state registration of this resolution the direction it to the copy on official publication in periodic printing editions.

4. To impose control of execution of this resolution on the vice-chairman of National Bank of the Republic of Kazakhstan Kurmanov Zh. B.

5. This resolution becomes effective after ten calendar days after day of its first official publication, except for paragraphs of the sixty fifth, sixty sixth, seventy fifth and seventy sixth Item 1 of the List, paragraphs of the forty fourth, forty fifth, forty sixth, forty seventh, forty eighth, forty ninth, fiftieth, fifty first and fifty second Item 2 and Item 3 of the List which become effective since January 1, 2019.

It is approved Chairman of Committee according to the statistics Ministries of national economy of the Republic of Kazakhstan 2018

N. Aydapkelov

Appendix

to the Resolution of Board of National Bank of the Republic of Kazakhstan of August 27, 2018 No. 202

The list of regulatory legal acts of the Republic of Kazakhstan concerning regulation of the security market to which changes and additions are made

1. Bring in the resolution of Board of National Bank of the Republic of Kazakhstan of February 3, 2014 No. 9 "About approval of Rules of implementation of broker and (or) dealer activities in the security market" (it is registered in the Register of state registration of regulatory legal acts at No. 9249, it is published on April 16, 2014 in information system of law of Ad_let) the following changes and amendments:

state heading in the following edition:

"About approval of Rules of implementation of broker and (or) dealer activities in the security market, procedure for carrying out by the broker and (or) dealer of banking activities";

state Item 1 in the following edition:

"1. Approve Rules of implementation of broker and (or) dealer activities in the security market, procedure for carrying out by the broker and (or) dealer of banking activities.";

in the Rules of implementation of broker and (or) dealer activities in the security market approved by the specified resolution:

state heading in the following edition:

"Rules of implementation of broker and (or) dealer activities in the security market, procedure for carrying out by the broker and (or) dealer of banking activities";

state preamble in the following edition:

"These rules of implementation of broker and (or) dealer activities in the security market, procedure for carrying out by the broker and (or) dealer of banking activities (further - Rules) are developed according to the Civil code of the Republic of Kazakhstan (Special part) of July 1, 1999, the laws of the Republic of Kazakhstan of July 2, 2003 "About the security market" (further - the Law on the security market), of July 4, 2003 "About state regulation, control and supervision of the financial market and the financial organizations" and establish conditions and procedure of broker and (or) dealer activities in the security market in the Republic of Kazakhstan (further - broker and (or) dealer activities), and also procedure for carrying out by the broker and (or) dealer of banking activities in the Republic of Kazakhstan.";

state Item 1 in the following edition:

"1. In part which is not settled by regulatory legal acts of the Republic of Kazakhstan broker and (or) dealer activities are performed according to internal documents of the broker and (or) dealer, prisoners between the broker and (or) the dealer and his clients agreements on rendering broker services and customs (including business customs).";

add with Item 1-1 of the following content:

"1-1. In part which is not settled by Rules the broker and (or) the dealer having the corresponding license for implementation of separate types of banking activities performs separate types of banking activities according to the bank law of the Republic of Kazakhstan, the legislation of the Republic of Kazakhstan on currency control and currency exchange control, payments and payment systems.";

3) of Item 2 to state the subitem in the following edition:

"3) the managing companies of investment funds which are brokers and (or) dealers in the part which is not contradicting the legislation of the Republic of Kazakhstan on investment and venture funds.";

the second Item 8 to state part in the following edition:

"For the purposes of Rules as the foreign settlement organization it is understood:

the nonresident bank of the Republic of Kazakhstan having long-term credit rating evaluation not below "VVV-" on the international scale of the Standard & Poor agency "s or rating assessment of similar level of the Moody agencies" of s Investors Service or Fitch;

the foreign organization which is performing functions, stipulated in Item 1 article 59 of the Law on the security market, having long-term credit rating evaluation not below "VVV" on the international scale of the Standard & Poor agency "s or rating assessment of similar level of the Moody agencies" s Investors Service or Fitch;

the nonresident organization of the Republic of Kazakhstan which is the member of International association concerning servicing of securities (International Securities Services Association).";

state Item 13 in the following edition:

"13. The organizational structure of the broker and (or) dealer of the second category is determined by it independently according to article 55 of the Law on the security market and internal documents of this broker and (or) dealer.";

state Item 15 in the following edition:

"15. The broker and (or) the dealer combining broker and dealer activities with activities for management of investment portfolio in case of the termination of activities of mutual investment fund which assets are at it in management in case of the bases for the termination of activities of mutual investment fund for the reasons specified in subitems 5) and 6) of Item 1 of article 33 of the Law of the Republic of Kazakhstan of July 7, 2004 "About investment and venture funds" within three working days from the date of receipt of the notification of authorized body on suspension of action of the license or its deprivation sends to the custodian performing accounting of assets of this fund, information on the amounts of creditor and debit debts, including, the transactions of "repo" which arose within opening including the information about the creditors, debtors and persons participating in transactions of "repo".";

state Item 17 in the following edition:

"17. The broker and (or) the dealer on the first demand of the client, and also person intending to enter contractual relations with this broker and (or) the dealer within 2 (two) working days from the date of receipt of customer requirement, and also person intending to enter contractual relations with this broker and (or) the dealer, submits for acquaintance internal documents of the broker and (or) dealer and the written confirmation of the broker and (or) dealer signed by his first head (in the period of its absence - person, it replacing), about compliance of the measure values characterizing covering of risks of the broker and (or) dealer of the first category not being bank, to the requirements established by the resolution of Board of National Bank of the Republic of Kazakhstan of August 27, 2013 No. 214 "About approval of Rules of forming of risk management system and internal control for the organizations performing broker and dealer activities in the security market, activities for management of the investment portfolio" registered in the Register of state registration of regulatory legal acts at No. 8796 (further - the resolution No. 214), in case of the conclusion it security transactions, stipulated in Item 49 Rules.";

state Item 19 in the following edition:

"19. The broker and (or) the dealer notifies the client on the restrictions and special conditions established concerning the transaction with financial instruments assumed to making for the account and for the benefit of this client.

The notification to the client about the restrictions and special conditions established concerning the transaction with financial instruments assumed to making for the account and for the benefit of this client is drawn up in writing, is registered in magazines of outgoing documentation of the broker and (or) dealer and goes by mail and (or) purposely, and (or) e-mail, and (or) the facsimile, and (or) telex, and (or) cable message or other possible types of communication in day of emergence of the basis of sending such notification.

If terms of transaction, assumed to making for the account and for the benefit of the client or concluded based on the customer order, correspond to conditions, the stipulated in Clause 56 Laws on the security market, the broker and (or) the dealer along with the direction to the client of the notification specified in part one of this Item of Rules sends the copy of this notification to authorized body.

Internal documents of the broker and (or) dealer, establish additional (in addition to the specified obligations) obligations of this broker and (or) the dealer on disclosure of information before his clients.";

state Item 24-1 in the following edition:

"24-1. The broker agreement as agreed by the parties includes procedure for rendering by the broker and (or) dealer of electronic services according to Item 3-1 of article 63 of the Law on the security market.";

state Item 26 in the following edition:

"26. In case of the conclusion of the broker agreement the client represents to the broker and (or) the dealer the following documents:

1) for physical persons:

copy of the identity document;

2) for legal entities - residents of the Republic of Kazakhstan:

copy of the charter (in the presence);

copy of the certificate of state registration (re-registration) of the legal entity;

notarially attested document with specimen signatures (including representatives of the legal entity, having rights to sign client orders) including data about (about):

name of the nominee holder;

the name of the legal entity - the client of the nominee holder granting the right to signing of the document;

positions, surnames, name, middle name (in case of its availability) the representative of the client of the nominee holder, data of the identity document;

specifying on the fact that the specimen signatures containing in this document are considered obligatory when implementing all transactions on the personal account of the client opened in system of nominal continence;

3) for legal entities - nonresidents of the Republic of Kazakhstan:

copy of the charter (in the presence);

the copy of the document confirming state registration of the legal entity issued by authorized body of the state of the nonresident;

the document with specimen signatures (including the representatives of the legal entity having rights to sign client orders);

the power of attorney or the decision of authorized body of the legal entity issued concerning the representative of the legal entity who will sign the broker agreement and to perform other actions;

the documents provided by internal documents of the broker and (or) dealer.";

state Items 27 and 28 in the following edition:

"27. The broker agreement is signed for the purpose of broker customer service during the term established by the broker agreement.

The broker agreement as additional term contains specifying on provision methods to the broker and (or) the dealer of client orders, procedure for confirmation by the broker and (or) dealer of acceptance of client orders and procedure for provision by the broker and (or) dealer to the client of performance reports of client orders, and also procedure and terms of the direction of notifications to the client in the cases provided by Items 19, of 29, of 32, of 42 and 43 Rules.

28. The broker agreement provides obligation of the broker and (or) dealer on informing authorized body on the security transaction made according to this broker agreement and concerning which restrictions and special conditions, no later than the day following behind day of the conclusion of such transaction are set.";

state Items 34 and 35 in the following edition:

"34. In the course of the conclusion and execution of the broker agreement the broker and (or) the dealer keeps confidentiality of information about the client, and also confidentiality of information obtained from the client, except as specified, stipulated in Item 3 articles 43 of the Law on the security market.

35. The broker and (or) the dealer makes transactions with financial instruments based on separate client orders or decisions of investment committee in case of provision by the client of the power of attorney to the broker and (or) the dealer, and (or) his worker (workers) on the transactions right for the account and for the benefit of this client.";

add with Item 35-1 of the following content:

"35-1. Issue by the client of the power of attorney to the broker and (or) dealer and (or) his worker (workers) on transactions with financial instruments for the account and for the benefit of this client is directly provided by the broker agreement. This power of attorney is certified notarially, and its details are reflected in the broker agreement.";

in Item 36 part one:

2) to state the paragraph of the seventh of the subitem in the following edition:

"date and number of the certificate of state registration (re-registration) of the legal entity, the name of the body which performed its state registration (re-registration);";

3) to state the subitem in the following edition:

"3) the name of the issuer, type of the financial instrument, code of the financial instrument or the international identification number (ISIN code) (concerning the rights of requirements for obligations of the issuer on issued securities which circulation period expired and the issuer are not fulfilled obligations on their repayment - the identifier of rights to claim) appropriated to financial instruments with which the transaction is subject to making according to this client order;";

the first and second Item 37 to state parts in the following edition:

"37. The form of the client order and number of copies of the client order, subject to representation by the client to the broker and (or) the dealer, are established by internal documents of the broker and (or) dealer. If other is not provided by Rules, the client order is signed by the client or his representative.

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