THE ORDER OF THE CEO OF THE CENTER FOR COORDINATION AND CONTROL OF FUNCTIONING OF THE SECURITY MARKET UNDER THE STATE PROPERTY COMMITTEE OF THE REPUBLIC OF UZBEKISTAN

of June 15, 2005 No. 2005-06

About approval of the Regulations on activities of investment adviser in the security market

According to the Regulations on the Center for coordination and market development of securities in case of Goskomkonkurention of the Republic of Uzbekistan approved by the resolution of the Cabinet of Ministers of the Republic of Uzbekistan of March 30, 1996 No. 126, I order:

1. Approve Regulations on activities of investment adviser in the security market according to appendix.

2. Enact this order after ten days from the date of its state registration in the Ministry of Justice of the Republic of Uzbekistan.

Approved by the Order of the CEO of the Center for coordination and control of functioning of the security market under the State Property Committee of the Republic of Uzbekistan of June 15, 2005 No. 2005-06

Regulations on activities of investment adviser in the security market

This Provision according to the Law of the Republic of Uzbekistan "About the security market" and other acts of the legislation establishes procedure of activities of investment adviser in the security market.

Action of this provision extends to the professional participants of the security market performing consulting activities in the security market according to the legislation.

1. General provisions

1. For the purpose of this provision the following basic concepts are used:

investment adviser - the legal entity rendering consulting services in questions of release, placement and security circulation, in the analysis and the forecast of market situation of securities and his participants, and also performing retraining and advanced training of specialists of the security market;

authorized state body on regulation of the security market - Agency on market development of the capital of the Republic of Uzbekistan;

the client - person using services of investment adviser in the security market.

2. It is excluded

3. Licensing of activities of investment adviser is performed by authorized state body on regulation of the security market if other is not established by the legislation.

The legal entity having the license for the right of implementation of professional activity in the security market as the investment intermediary and (or) the trustee the investment assets having the right to render consulting services in questions of issue of securities. At the same time receipt of the separate license for the right of implementation of professional activity by it in the security market as investment adviser is not required.

To person rendering consulting services to the unrestricted group of people by means of mass media concerning release, placement and security circulation according to the analysis and the forecast of market situation of securities and his participants, receipt of the separate license for the right of implementation of professional activity in the security market as investment adviser is not required.

2. Requirements to activities of investment adviser

4. The investment adviser shall:

have the license granted by authorized state body on regulation of the security market, except as specified, established by the legislation;

provide compliance of the size of own means to standard rates of sufficiency of own means established by authorized state body on regulation of the security market;

have in the state at least two specialists, including the head, conforming to the qualification requirements established by authorized state body on regulation of the security market;

provide to the client necessary information for adoption of the independent decision by him;

keep internal account of transactions with securities, and also organize and exercise internal control according to regulatory legal acts of authorized state body on regulation of the security market, own procedures and rules;

perform disclosure of information according to the procedure, the established legislation of the Republic of Uzbekistan on the security market;

notify clients on their rights to be informed, stipulated in Item 4-1 this provision.

4-1. Upon the demand of the client the investment adviser provides:

copy of the document on state registration;

the copy of the license for the right of implementation of professional activity in the security market as investment adviser;

data on authorized fund, size of own means and its reserve fund;

other data and documents according to the legislation.

5. The investment adviser has no right:

render consulting services in the security market without the corresponding license, except as specified, established by the legislation;

the paragraph third is excluded

make recommendations about purchase or sale of specific securities;

render consulting services without the conclusion of the relevant contract with the client;

without written consent the client to open information to the third parties about content of the consulting services rendered to the client (except authorized state body on regulation of the security market in the cases and amounts established by the legislation);

use confidential information for the conclusion of transactions, and also transfer it for transactions to other persons;

render services in questions of placement and security circulation if the authorized state body on regulation of the security market suspended issue of these securities.

3. Activities of investment adviser

6. Activities of investment adviser in the security market include rendering services on:

to the analysis and forecast of market situation of securities and his participants;

to examination, development and recommendation of financial instruments (financial liabilities);

to consultation on questions of issue of securities, including on preparation of the decision on issue of securities, prospectuses of the issue of clients;

to retraining and advanced training of specialists of the security market;

to consultation on questions of implementation of investment policy by legal entities and physical persons;

to the edition and provision of the training materials intended for clients;

to preparation of the reporting of the client in the security market;

to consultation on questions of placement and security circulation;

to preparation and the publication of the data intended for the unrestricted group of people;

preparation and provision of other types of information which are not forbidden by the legislation.

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