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

of March 26, 2005 No. 109

About approval of Rules of assessment of the financial instruments which are in investment portfolios of the accumulation pension funds

1. Approve the enclosed Rules of assessment of the financial instruments which are in investment portfolios of the accumulation pension funds.

2. This resolution becomes effective since July 1, 2005.

3. To department of supervision of subjects of the security market and accumulation pension funds (Tokobayev N. T.):

1) together with Legal department (Baysynov M. B.) to take measures to state registration in the Ministry of Justice of the Republic of Kazakhstan of this resolution;

2) in ten-day time from the date of state registration in the Ministry of Justice of the Republic of Kazakhstan to bring this resolution to the attention of the interested divisions of the Agency, Consolidation of legal entities "Association of financiers of Kazakhstan", Associations of legal entities "Association of asset managers", the accumulation pension funds.

4. To department of the international relations and public relations of the Agency (Pernebayev T. Sh.) provide the publication of this resolution in mass media of the Republic of Kazakhstan.

5. To impose control of execution of this resolution on the vice-chairman of the Agency Bakhmutova E. L.

Approved by the Resolution of Board of the Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and the financial organizations of March 26, 2005 No. 109

Rules of assessment of the financial instruments which are in investment portfolios of the accumulation pension funds

These rules are developed for the purpose of determination of evaluation procedure of the financial instruments which are in investment portfolios of the accumulation pension funds.

1. The portfolio of the financial instruments acquired at the expense of pension assets is subdivided into three categories:

1) the financial instruments estimated at fair value which changes are reflected in profit or loss;

2) the financial instruments withheld before repayment;

3) financial instruments, available for sale.

Current value of the financial instruments considered as the financial instruments withheld before repayment:

since January 1, 2013 - constitutes no more than 15 (fifteen) percent from aggregate current value of financial instruments, except for the government securities of the Republic of Kazakhstan issued by the Ministry of Finance of the Republic of Kazakhstan and National Bank of the Republic of Kazakhstan, which are in portfolio of the accumulation pension fund.

In case of the translation of the financial instrument from category "the financial instruments withheld before repayment" in category "financial instruments, available for sale" the accumulation pension fund which is independently exercising investment control of pension assets or the organization exercising investment control of pension assets (further jointly referred to as - the organization), within five working days from decision date about the translation send to National Bank of the Republic of Kazakhstan (further - authorized body) the transfer advice with indication of the reasons of adoption of this decision.

2. Reference of the acquired securities in one of the above-stated categories is made according to international accounting standards based on the decision of investment committee of the organization.

3. Recognition of the financial instrument as a part of assets of the accumulation pension fund, and also write-off of the financial instrument is performed on registration date of the transaction in system of accounting of custodian or central depositary.

3-1. In case of initial recognition of the financial instrument as a part of assets of the accumulation pension fund this financial instrument is estimated at fair value. Fair value of the financial instrument considers costs according to the transaction which are directly connected with acquisition of such financial instrument.

Fair value is understood as the cost determined according to Items 7, 7-1, 7-2, 8, of 8-1 and 9 these rules.

3-2. When implementing separation of the investment portfolio which is available for the accumulation pension fund for December 31, 2011 on conservative and moderate investment portfolios, in conservative investment portfolio the financial instruments estimated at fair value which changes are reflected in profit or loss, available for sale, conforming to requirements, the installed application 2 to Rules of implementation of organization activity, performing activities for investment management of pension assets, and the accumulation pension funds, the approved resolution of Board of the Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and the financial organizations of August 5, 2009 No. 189 (registered in the Register of state registration of regulatory legal acts at No. 5794) and money are considered.

4. Charge of remuneration on the financial instruments acquired at the expense of pension assets, except for deposits in National Bank of the Republic of Kazakhstan and banks of the second level is made daily and begins from the date of, the financial instrument following date of registration.

Discount or award on the financial instruments determined in category withheld before repayment, will be amortized, since the moment of purchase of these financial instruments to the term of their repayment according to international accounting standards.

5. The current value of the assets placed in deposits in National Bank of the Republic of Kazakhstan and banks of the second level is determined by daily charge of the amount of remuneration for the period and according to the procedure, specified in bank deposit agreement.

6. If securities are acquired by the organization with the remuneration added for the period until acquisition, then upon their purchase in the days which are not matching with days of payment of remuneration, the organization pays to the seller in addition to the cost of securities the remuneration which is due for the period, passed from the moment of its last payment, and considers it separately. In case of approach of the next payment due date the organization earns rewards it completely for the entire period.

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