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The document ceased to be valid since  April 23, 2016 according to Item 2 of the Resolution of Board of National Bank of the Republic of Kazakhstan of December 19, 2015 No. 253

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 February 1, 2010 No. 5

About approval of the Instruction about requirements for availability of risk management system in the central depositary, both modification and amendments in 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 December 29, 2008 No. 238 "About approval of Rules of implementation of activities of the central depositary"

(as amended on 19-12-2015)

According to subitem 14-2) of article 12 of the Law of the Republic of Kazakhstan of July 4, 2003 "About state regulation and supervision of the financial market and the financial organizations", and also for the purpose of enhancement of the regulatory legal acts regulating activities of the central depositary, Board of the Agency of the Republic of Kazakhstan for regulation and supervision of the financial market and the financial organizations (further - the Agency) DECIDES:

1. Approve the enclosed Instruction about requirements for availability of risk management system in the central depositary.

2. Ceased to be valid according to the Resolution of Board of National Bank of the Republic of Kazakhstan of 19.12.2015 No. 254

3. This resolution becomes effective after fourteen calendar days from the date of its state registration in the Ministry of Justice of the Republic of Kazakhstan, except for Item 1 of the resolution which becomes effective since June 1, 2010.

4. To the central depositary till May 1, 2010 to submit to the Agency the internal documents of the central depositary brought into accord with requirements of the Instruction about requirements for availability of the risk management system in the central depositary approved by this resolution and also to bring the used software and hardware into accord with requirements of the Instruction about requirements for availability of the risk management system in the central depositary approved by this resolution.

5. To department of supervision of subjects of the security market and accumulation pension funds (Hadzhiyeva M. Zh.):

1) together with Legal department (Sarsenov N. V.) 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 of this resolution to bring it to the attention of the interested divisions of the Agency, Consolidation of legal entities "The association of financiers of Kazakhstan".

6. To service of the Chairman of the Agency (Kenzhe A. A.) take measures for publication of this resolution in mass media of the Republic of Kazakhstan.

7. To impose control of execution of this resolution on the vice-chairman of the Agency Aldambergen A. U.

Chairman

E.Bakhmutova

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 February 1, 2010 No. 5

The instruction about requirements for availability of risk management system in the central depositary

Chapter 1. General provisions

1. The purpose of this Instruction is determination of requirements to forming of risk management system by the central depositary.

2. The board of directors of the central depositary provides compliance of risk management system to requirements of this Instruction and creates conditions for execution by bodies, divisions and employees of the central depositary of the obligations assigned to them in the field of risk management.

3. In this Instruction the following concepts are used:

1) information system - the software and hardware of the central depositary by means of which generation, storage, accounting, timely provision and disclosure of the financial and operational information necessary for the board of directors, executive body and employees of the central depositary is provided in case of accomplishment of the obligations, and also to registrars, issuers, depositors of the central depositary and their clients in the course of their activities;

2) price risk - the risk of emergence of expenses (losses) owing to change in value of financial instruments arising in case of change of conditions of the financial markets influencing market value of the financial instruments acquired at the expense of own assets of the central depositary;

3) reputation risk - risk of emergence of expenses (losses) owing to negative public opinion or decrease in trust to the central depositary;

4) bek-testing - methods of check of efficiency of procedures of risks measurement with use of historical data on the central depositary and comparison of the calculated results with the current (actual) results from making of the specified transactions;

5) currency risk - the risk of emergence of expenses (losses) connected with change of the foreign exchange rates when implementing of activities by the central depositary. The risk of emergence of expenses (losses) arises because of revaluation of line items on currencies in value term;

6) clearing transactions - transactions on collection, reconciliation, sorting and confirmation of calculations, and also carrying out their offset and determination of net line items of participants of clearing;

7) communication system - the software and hardware of the central depositary intended for process management of information transfer between bodies and divisions of the central depositary, registrars, issuers, depositors and the central depositary, and also other systems of the central depositary;

8) corporate management - the system of strategic and tactical management of the central depositary representing complex of relations between the supreme body, governing body, executive body, aimed at providing effective functioning of the central depositary, protection of the rights and interests of its shareholders and giving to shareholders opportunity of effective control and monitoring of activities of the central depositary;

9) credit risk - risk of emergence of expenses (losses) owing to failure to pay by the issuer the principal debt and remuneration which is due to the security holder in the time established by conditions of security issue including also risk of the losses arising in connection with failure to carry out by the partner of obligations in the swaps, options, forwards and other financial instruments subject to credit risk and during settlement of payment under these securities and other financial instruments;

10) legal risk - risk of emergence of expenses (losses) owing to violation of requirements of the legislation of the Republic of Kazakhstan by the central depositary, including discrepancies of internal documents of the central depositary to requirements of regulatory legal acts of authorized body, discrepancy of practice of activities of the central depositary to its internal documents, and in the relations with nonresidents of the Republic of Kazakhstan - violations of requirements of the legislation of other states;

11) policy of investment of own assets - the document determining the list of investment objects, the purposes, strategy, conditions and restrictions of investing activities on own assets of the central depositary, condition of hedging and diversification of own assets;

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