ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of May 27, 2011 No. 252

About approval of the Regulations on assets of investment funds

According to the laws of the Kyrgyz Republic "About regulatory legal acts of the Kyrgyz Republic" and "About the security market" the Government of the Kyrgyz Republic decides:

1. Approve the enclosed Regulations on assets of investment funds.

2. This resolution becomes effective since January 1, 2011.

3. Publish this resolution in official mass media.

4. To impose control of execution of this resolution on Public service of regulation and supervision of the financial market under the Government of the Kyrgyz Republic.

Approved by the Order of the Government of the Kyrgyz Republic of May 27, 2011 No. 252

Regulations on assets of investment funds

1. General provisions

1. This Provision is developed according to the Law of the Kyrgyz Republic "About investment funds", International accounting standards (further - IFRS), other regulatory legal acts of the Kyrgyz Republic regulating financial accounting and the financial reporting.

2. This Provision:

- determines requirements to structure and structure of investment assets of investment funds, evaluation procedure of net assets value of investment funds, calculation of net assets value on one share of joint-stock investment fund and cost of one investment share of mutual investment fund, and also the prices of placement and the redemption of one security (the share / investment share) interval investment fund and investment fund with the obligation of the redemption of the securities emitted by it upon the demand of owners of these securities;

- establishes procedure for storage of property and accounting of the rights to the securities which are in investment portfolio in property of investment fund, the principles of interaction of investment fund with depositary.

3. The structure and structure of investment assets of investment funds are determined by the investment declaration of investment funds according to this Provision and regulatory legal acts of the Kyrgyz Republic.

4. Accounting and value assessment of fixed assets of investment funds is conducted according to IFRS.

5. The requirements to structure and structure of investment assets of mutual investment funds established by this Provision are shown after terms of primary placement of investment shares. During the term of primary placement of investment shares of fund the managing director of fund has the right to use the money constituting Fund only for investment into government securities, freely convertible currency, deposits commercial banks for up to 6 months. The above-stated requirements are not applicable to investment fund for skilled investors whose means can be placed according to the investment declaration.

6. Creation and submission of the reporting on investment assets of investment funds is performed according to regulatory legal acts of the Kyrgyz Republic.

7. In this Provision the following terms and concepts are used:

- the joint-stock investment fund (further - AIF) - open joint stock company which raises funds of physical persons and legal entities by public share issue invests the raised funds and means received in the course of investing activities in investment assets, owns on the property right investment assets which average cost for the last two quarters made 30 and more percent from average cost of its assets for the same period;

- joint-stock investment funds are subdivided on:

joint-stock investment fund without obligation of the redemption of the shares emitted by it upon the demand of shareholders (further - the closed AIF);

joint-stock investment fund with the obligation of the redemption of the shares emitted by it upon the demand of shareholders (further - open AIF);

- interval joint-stock investment fund which shares grant to their owners the right to demand from issuers payment of their cost in in advance stipulated terms, but at least once a year (further - interval AIF);

- assets of investment fund - the resources controlled by investment fund as a result of events of last periods from which the investment fund expects receipt of economic benefit in the future;

- the depositary of investment fund - the legal entity having the corresponding license who stores securities and assets of investment fund controls the address of assets of investment fund according to the investment declaration and performs other functions according to agreement provisions with joint-stock investment fund or managing company of mutual investment fund;

- investment assets of investment fund - assets which the investment fund performs investments:

- the investment declaration - information on the investment purposes of investment fund and the description of the directions of its investment policy containing in the Charter and the prospectus of the issue of shares of joint-stock investment fund, rules of mutual investment fund;

- mutual investment fund (further - mutual fund) - the complex of the isolated property without formation of legal entity consisting of the investors received by managing company in trust management of property by open sale of investment shares, and also the property received by managing company in the course of trust management;

- mutual investment funds are subdivided:

interval investment fund which investment shares grant to their owners the right to demand from managing company payment of their cost in in advance stipulated terms, but at least once a year (further - interval mutual fund);

investment fund with the obligation of the redemption of the investment shares emitted by it from owners of shares according to their requirement (further - open mutual fund);

on mutual investment funds without obligation of the redemption of the investment shares emitted by them upon the demand of owners of shares (closed-end investment funds);

- obligations of investment fund - the current debt of investment fund arising from events of last periods which result of repayment will lead to asset retirement of investment fund, containing economic benefits;

- investment fund for skilled investors - investment fund of the closed type which only skilled investors can hold shares (shares);

- the skilled investor - physical person or legal entity, including being the nonresident of the Kyrgyz Republic which conforms to requirements imposed by the legislation of the Kyrgyz Republic in the field of the security market to the skilled investor. The skilled investor shall specify the status as that person when signing any documents, its money allocated for investment into securities of investment funds;

- original cost of asset - acquisition value of asset, including costs for its acquisition;

- market value of asset - cash amount which can be received from sale or shall be paid in case of acquisition of asset in the active market;

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