ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of August 15, 2011 No. 467

About approval of the Regulations on normative indicators of sufficiency of own means established for professional participants of the security market

According to the Law of the Kyrgyz Republic "About the security market" the Government of the Kyrgyz Republic decides:

1. Approve the enclosed Regulations on normative indicators of sufficiency of own means established for professional participants of the security market.

2. This resolution becomes effective after 15 days from the date of official publication.

Approved by the Order of the Government of the Kyrgyz Republic of August 15, 2011 No. 467

Regulations on normative indicators of sufficiency of own means established for professional participants of the security market

1. General provisions

1. This Provision is developed according to the Law of the Kyrgyz Republic "About the security market" and establishes standard rates of sufficiency of own means, obligatory to observance by professional participants of the security market.

2. Observance of standard rates of sufficiency of own means is necessary for the purpose of:

- ensuring base for profitable and strong growth;

- restrictions of risk on transactions with securities;

- timely covering of the losses and potential losses connected with activities of professional participants;

- increases in trust to professional participants of the security market from investors.

3. In case of assessment of real sufficiency of own means, except the normative indicators established by this Provision, the authorized body on regulation of the security market will consider also other indicators which treat:

- quality of management;

- compliance with law on securities;

- liquidity;

- general economic terms.

4. Calculation of standard rates of sufficiency of own means is made by professional participants and quarterly it is represented in authorized state body on the security market based on data of the accounting records constituted on the established financial accounting regulations.

1-1. Qualification requirements to applicants of the professional participant of the security market

Applicants for the right of receipt of the certificate of competency of the professional participant of the security market shall conform to the following qualification requirements:

- have the higher education;

- have faultless goodwill.

The applicant for the right of receipt of the certificate of competency of the professional participant of the security market is considered not having or lost faultless goodwill in the following cases:

- if it has not removed and unspent conviction for crime execution in the sphere of economy;

- if it is recognized as court that its actions or failure to act led to involuntary liquidation, including bankruptcy of the legal entity;

- if he has no right to perform activities in bank, financial, auditor, insurance and investment spheres by a court decision;

- if it lost faultless goodwill in other fields of activity by a court decision;

- in the presence at it the unexecuted judgment on payment of the financial liabilities;

- if it intentionally provided in authorized body on regulation of the security market false information and documents.

2. Normative indicators of sufficiency of own means

5. For the corresponding type of professional activity in the security market, own means of the professional participant of the security market shall be at least minimum size of the authorized capital established by Items 6 and 8 of this provision.

6. The minimum size of the authorized capital of the professional participant of the security market shall be at least following size:

depository activity - 200000 settlement indicators established by the legislation of the Kyrgyz Republic;

activities for the organization of trade in the security market - 500000 settlement indicators;

activities for trust management of investment assets - 50000 settlement indicators;

dealer activities - 15000 settlement indicators;

broker activities - 80000 settlement indicators;

activities for maintaining the register of owners of securities - 20000 settlement indicators;

activities of investment fund - 10000 settlement indicators.

7. The minimum size of own means of managing company of the accumulation pension fund constitutes:

The total amount of assets which is in trust management at managing company is determined as the current market value of assets in which means of the pension accruals delivered by it in trust management are invested. The current market value of assets is determined based on market quotations or based on the conclusions of independent appraisers by comparative evaluation method of assets at the price level (quotations) in the market.

Reporting date as of which sufficiency of own means of managing company concerning amount (cost) of the assets served by it is determined and also sufficiency of own means of managing company of rather total amount of the assets which are at it in trust management, is the last calendar day of quarter.

8. When implementing on the terms of combination of several types of professional activity the minimum size of the authorized capital of the professional participant of the security market is determined by securities according to requirements imposed to that from types of activity concerning which the largest minimum size of the authorized capital is established.

9. The coefficient of current liquidity is established for the purpose of ensuring financial stability, assessment of availability of quick assets at professional participants of the security market.

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