Document from CIS Legislation database © 2003-2020 SojuzPravoInform LLC

LAW OF THE REPUBLIC OF KAZAKHSTAN

of July 4, 2003 No. 474-II

About state regulation, control and supervision of the financial market and the financial organizations

(as amended on 03-07-2019)

This Law governs the public relations connected with implementation of state regulation, control and supervision of the financial market and the financial organizations and is directed to increase in stability of financial system of the Republic of Kazakhstan and creation of conditions on non-admission of violations of the rights and legitimate interests of consumers of financial services.

Chapter 1. General provisions

Article 1. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) the consumer of financial services - the physical person or legal entity using services of the financial organization, and also investing the means in financial instruments;

2) professional activity in the financial market - business activity on provision of financial services;

3) authorized body on regulation, control and supervision of the financial market and the financial organizations (further - authorized body) - the state body performing state regulation, control and supervision of the financial market and the financial organizations;

4) the financial organization - the legal entity performing business activity on provision of financial services;

5) the financial market - set of the relations connected with rendering and consumption of financial services, and also release and the address of financial instruments;

6) financial services - activities of participants of the insurance market, the security market, Voluntary accumulation pension fund, the banking activity, organization activity for carrying out separate types of banking activities performed based on the licenses obtained according to the legislation of the Republic of Kazakhstan and also the activities which are not subject to licensing:

single accumulation pension fund;

central depositary;

the single operator in the sphere of accounting of state-owned property regarding implementation of functions of nominal continence of the securities belonging to the state, subjects of the quasi-public sector which list affirms authorized body on management of state-owned property, or concerning which the state, the specified subjects of the quasi-public sector have property rights;

societies of mutual insurance;;

7) financial product is the service developed by the financial organization for the offer to consumers of financial services within implementation of professional activity in the financial market.

Article 2. Legislation of the Republic of Kazakhstan on state regulation, control and supervision of the financial market and financial organizations

1. The legislation of the Republic of Kazakhstan on state regulation, control and supervision of the financial market and the financial organizations is based on the Constitution of the Republic of Kazakhstan, consists of this Law and other regulatory legal acts of the Republic of Kazakhstan.

2. If the international treaty ratified by the Republic of Kazakhstan establishes other rules, than those which are provided by this Law then are applied rules of the international treaty.

3. Operation of the legislation of the Republic of Kazakhstan on public procurements regarding acquisition by authorized body of the services connected with ensuring stability of financial system does not extend to the legal relationship settled by the legislation of the Republic of Kazakhstan on state regulation, control and supervision of the financial market and the financial organizations.

Article 3. Purposes, principles and tasks of state regulation, control and supervision of the financial market and financial organizations

1. The purposes of state regulation, control and supervision of the financial market and the financial organizations are:

1) assistance to ensuring financial stability of the financial market and the financial organizations and maintenance of trust to financial system in general;

2) No. 30-V ZRK is excluded according to the Law of the Republic of Kazakhstan of 05.07.2012

3) creation of equal conditions for activities of the financial organizations directed to maintenance of fair competition in the financial market.

2. The principles of state regulation, control and supervision of the financial market and the financial organizations are:

1) effective use of resources and instruments of regulation;

2) transparency of activities of the financial organizations and financial supervision;

3) responsibility of the financial organizations.

3. Tasks of state regulation, control and supervision of the financial market and the financial organizations are:

1) establishment of standards of activities of the financial organizations, creation of incentives for improvement of corporate management of the financial organizations;

2) monitoring of the financial market and the financial organizations for the purpose of preserving stability of financial system;

3) concentration of resources of supervision on areas of the financial market, the most subject to risks, for the purpose of maintenance of financial stability;

4) ensuring proper level of protection of consumer interests of financial services, completeness and availability of information to consumers on activities of the financial organizations and the financial services rendered by them, and also increases in level of financial literacy and financial availability to the population.

Article 4. Prohibition on unauthorized activities in the financial market

1. Implementation of professional activity in the financial market is not allowed by persons which do not have the corresponding license granted according to the legislation of the Republic of Kazakhstan.

2. The transactions on rendering financial services made without the corresponding license are invalid.

Article 5. Prudential standard rates and other regulations, obligatory to observance, and limits

Prudential standard rates are the economic restrictions set by authorized body for the financial organizations for the purpose of ensuring their financial stability and protection of consumer interests of financial services.

In the cases provided by legal acts of the Republic of Kazakhstan, the authorized body has the right to establish prudential standard rates and other regulations, obligatory to observance, and limits on the consolidated basis.

Article 6.

It is excluded

Chapter 1-1. Status, structure and bodies of authorized body

Article 6-1. Status and legal basis of activities of authorized body

The authorized body is state body, directly subordinate and accountable to the President of the Republic of Kazakhstan, performing state regulation, control and supervision of the financial market and the financial organizations.

The authorized body acts on the basis of the Regulations on it approved by the President of the Republic of Kazakhstan.

The authorized body in the activities is guided by the Constitution of the Republic of Kazakhstan, this Law, other laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and international treaties of the Republic of Kazakhstan.

The authorized body is legal entity in form of business of the republican public institution financed by budgetary funds.

Article 6-2. Structure and general number of staff of authorized body

The structure and the general number of staff of authorized body affirm the President of the Republic of Kazakhstan.

Article 6-3. Chairman of authorized body

The chairman of authorized body is appointed to position by the President of the Republic of Kazakhstan for a period of six years.

The chairman of authorized body acts on behalf of authorized body and represents it without power of attorney in the relations with state bodies, the organizations and other persons.

The chairman of authorized body is given authority to make operational and executive decisions concerning activities of authorized body, except for the powers stipulated by this Law for Board of authorized body, to sign contracts on behalf of authorized body.

The chairman of authorized body is responsible for activities of authorized body.

The chairman of authorized body has the right to resign, having submitted the President of the Republic of Kazakhstan the written application in two months prior to resignation.

The chairman of authorized body is dismissed by the President of the Republic of Kazakhstan.

Article 6-4. Vice-chairmen of authorized body

Vice-chairmen of authorized body are appointed to position by the President of the Republic of Kazakhstan on representation of the Chairman of authorized body for a period of six years irrespective of terms of appointment of the Chairman of authorized body.

Vice-chairmen of authorized body represent authorized body without power of attorney, sign documents within the competence.

Vice-chairmen of authorized body are dismissed by the President of the Republic of Kazakhstan on representation of the Chairman of authorized body.

Vice-chairmen of authorized body can resign, having submitted the written application to the President of the Republic of Kazakhstan through the Chairman of authorized body in two months prior to resignation.

Article 6-5. Board of authorized body and its power

The supreme body of authorized body is the Board.

Board of authorized body:

1) determines priorities in the field of forming and development of the financial market;

2) adopts the regulatory legal acts regulating activities of the financial market and the financial organizations, and also other persons according to this Law, other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan;

3) is determined by procedure for application to financial and other organizations of limited corrective actions, the measures of supervising reaction provided by the laws of the Republic of Kazakhstan for the questions entering its competence;

4) makes the decision on introduction of specific mode of regulation;

Considers 5) and approves the agreement on implementation of activities within specific mode of regulation;

6) together with National Bank of the Republic of Kazakhstan approves the programs directed to protection of consumer interests of financial services;

7) makes decisions on participation of authorized body in the international and other organizations;

8) makes the decision on creation of advisory advisory bodies of authorized body;

Considers 9), approves and submits for approval to the President of the Republic of Kazakhstan structure, the general number of staff of authorized body and Regulations on authorized body, and also changes and amendments in them;

10) approves payment terms of work and social providing employees of authorized body;

Warning!!!

This is not a full text of document! Document shown in Demo mode!

If you have active License, please Login, or get License for Full Access.

With Full access you can get: full text of document, original text of document in Russian, attachments (if exist) and see History and Statistics of your work.

Get License for Full Access Now

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

Effectively work with search system

Database include more 40000 documents. You can find needed documents using search system. For effective work you can mix any on documents parameters: country, documents type, date range, teams or tags.
More about search system

Get help

If you cannot find the required document, or you do not know where to begin, go to Help section.

In this section, we’ve tried to describe in detail the features and capabilities of the system, as well as the most effective techniques for working with the database.

You also may open the section Frequently asked questions. This section provides answers to questions set by users.

Search engine created by SojuzPravoInform LLC. UI/UX design by Intelliants.