THE RESOLUTION OF BOARD OF THE AGENCY OF THE REPUBLIC OF KAZAKHSTAN ON REGULATION AND DEVELOPMENT OF THE FINANCIAL MARKET

of June 26, 2023 No. 62

About approval of Requirements to managing directors of investment portfolio by which pension assets, and also the List of the financial instruments permitted to acquisition at the expense of the pension assets which are in trust management at the managing director of investment portfolio can be delivered in trust management

1. Approve:

1) Requirements to managing directors of investment portfolio by which pension assets according to appendix 1 to this resolution can be delivered in trust management;

2) the List of the financial instruments permitted to acquisition at the expense of the pension assets which are in trust management at the managing director of investment portfolio according to appendix 2 to this resolution.

2. Recognize invalid regulatory legal act of the Republic of Kazakhstan, and also separate structural elements of some regulatory legal acts of the Republic of Kazakhstan according to the list according to appendix 3 to this resolution.

3. To provide to department of the security market in the procedure established by the legislation of the Republic of Kazakhstan:

1) together with Legal department state registration of this resolution in the Ministry of Justice of the Republic of Kazakhstan;

2) placement of this resolution on official Internet resource of the Agency of the Republic of Kazakhstan on regulation and development of the financial market after its official publication;

3) within ten working days after state registration of this resolution submission to Legal department of data on execution of the action provided by the subitem 2) of this Item.

4. To impose control of execution of this resolution on the supervising vice-chairman of the Agency of the Republic of Kazakhstan on regulation and development of the financial market.

5. This resolution becomes effective since July 1, 2023 and is subject to official publication.

Appendix 1

to the Resolution of Board of the Agency of the Republic of Kazakhstan on regulation and development of the financial market of June 26, 2023 No. 62

Requirements to managing directors of investment portfolio by which pension assets can be delivered in trust management

Chapter 1. General provisions

2. The authorized body on regulation, control and supervision of the financial market and the financial organizations (further – authorized body) conducts and places on the Internet resource the register of the managing directors of investment portfolio conforming to requirements, stipulated in Item 3 Requirements for implementation of management of pension assets (further – the register of managing directors).

The data specified in the register of managing directors are staticized by authorized body on the Internet resource within 3 (three) working days from the date of identification of the fact of compliance of the managing director of investment portfolio to requirements, stipulated in Item 3 Requirements.

Chapter 2. Requirements to managing directors of investment portfolio by which pension assets can be delivered in trust management

3. For inclusion in the register of managing directors the managing director of investment portfolio conforms to the following requirements:

1) the size of equity constitutes at least 440 000 (four hundred forty thousand) monthly settlement indicators;

2) experience of management of investment portfolio within the last 36 (thirty six) months preceding date of inclusion in the register of managing directors in the amount at least 5 000 000 000 (five billion) tenges calculated according to the procedure, stipulated in Item 4 Requirements;

3) lack of the facts of unprofitable activities of the managing director of investment portfolio by results of each of 2 (two) last complete financial years preceding date of inclusion in the register of the managing directors confirmed with the audit report;

4) lack of the facts of violation of the prudential standard rates determined by authorized body within the last 6 (six) months preceding date of inclusion in the register of managing directors;

5) absence for date of inclusion in the register of the managing unexecuted and (or) operating measures of supervising reaction, sanctions, administrative punishments and other corrective actions applied by authorized body concerning the managing director of investment portfolio and (or) its large participant;

6) absence for date of inclusion in the register of the managing unexecuted actions plans providing measures of early reaction for increase in financial stability of the managing director of investment portfolio and (or) measures for improvement of financial condition and (or) risk minimization;

7) availability at the managing director of investment portfolio of the shareholder owning (having opportunity to vote) ten or more percent of voting shares of the managing director of investment portfolio and being resident of the Republic of Kazakhstan or the nonresident organization of the Republic of Kazakhstan having long-term credit rating evaluation not below VVV on the international scale of the Standard & Poor agency "s (Standard and Purs) or rating assessment of similar level of the Moody agencies" s Investors Service (Mudis Investors Service) or Fitch (Features);

8) absence for date of inclusion in the register of the managing facts of recognition of actions of the managing director of investment portfolio and (or) its leading employees as made for the purpose of manipulation in the security market, within the last 12 (twelve) months preceding date of inclusion in the register of managing directors.

4. For the purposes of the subitem 2) of Item 3 of Requirements the arithmetic average value of asset cost of not affiliated clients (except for costs of other in addition to financial instruments of property, shares in the authorized capital of legal entities which is not joint-stock companies and receivables amounts) who were in investment management of the managing director of investment portfolio as of the end of the last calendar day of each of 36 (thirty six) months preceding date of inclusion by authorized body of the managing director of investment portfolio in the register of managing directors is taken into consideration.

5. In the presence at the managing director of investment portfolio of the shareholder owning (having opportunity to vote) hundred percent of voting shares of the managing director of investment portfolio and being the nonresident organization of the Republic of Kazakhstan having long-term credit rating evaluation not below VVV on the international scale of the Standard & Poor agency "s (Standard and Purs) or rating assessment of similar level of the Moody agencies" s Investors Service (Mudis Investors Service) or Fitch (Features):

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