ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of August 26, 2011 No. 519

About approval of the Regulations on professional activity of brokers and dealers in the security market of the Kyrgyz Republic

According to the laws of the Kyrgyz Republic "About regulatory legal acts of the Kyrgyz Republic" and "About the security market" the Government of the Kyrgyz Republic decides:

1. Approve the enclosed Regulations on professional activity of brokers and dealers in the security market of the Kyrgyz Republic.

2. This Resolution becomes effective since January 1, 2011.

3. Publish this Resolution in official mass media.

Approved by the Order of the Government of the Kyrgyz Republic of August 26, 2011 No. 519

Regulations on professional activity of brokers and dealers in the security market of the Kyrgyz Republic

1. General provisions

1. This Provision according to the Law of the Kyrgyz Republic "About the security market" establishes the main requirements and conditions of implementation by brokers and dealers of securities of the professional activity in the Kyrgyz Republic.

2. According to the Law of the Kyrgyz Republic "About the security market" professional activity of brokers and dealers of the security market is subject to obligatory licensing.

3. All relations arising between the broker and (or) the dealer, and the client are regulated by the legislation of the Kyrgyz Republic, this Provision and the agreement signed between the broker on the one hand and (or) the dealer and the client on the other hand.

4. Heads and specialists of the broker and (or) the dealer shall meet the qualification requirements established by regulatory legal acts of the Government of the Kyrgyz Republic.

5. In this Provision the following determinations are used:

the issuer - the legal entity incurring on its own behalf obligations to owners of securities on implementation of the rights affirmed by these securities;

underwriting - carrying out by the underwriter subscription to securities or security sales, issued in case of public issue, based on the agreement with the issuer of these securities;

the underwriter is the professional participant of the security market who signed the contract with the issuer of securities with the obligation to carry out subscription to securities or security sale, the securities issued in case of public issue, or to provide subscription to securities or their purchase by other persons;

broker activities - activities for making of civil security transactions as the agent or the broker, the acting on the basis of the relevant contract, and also the power of attorney for making of such transactions in the absence of instructions on powers of the agent or broker in the agreement;

the broker - the professional participant of the security market who is performing broker activities and having the corresponding license of authorized state body on the security market on implementation of professional activity on securities;

group of sellers - the brokers and dealers accepting orders at members of group of underwriters on primary placement of the emitted securities, but the groups of underwriters which are not members;

dealer activities - transactions of purchase and sale of securities on its own behalf and at own expense by the public announcement of purchase prices and/or sale of certain securities with the obligation of purchase and/or sale of these securities at the prices announced by the face performing such activities and also the term during which the announced prices are effective;

the dealer - the professional participant of the security market who is performing dealer activities and having the corresponding license of authorized state body on the security market on implementation of professional activity on securities;

investment adviser - the member of the security market rendering consulting services in questions of acquisition of securities and other investments;

conflict of interest - the situation arising in the course of implementation of professional activity in the security market in case of which the contradiction of interests of the broker and (or) dealer and his client takes place;

the managing underwriter - the underwriter responsible for the organization of group of underwriters, preparation of issue and the conclusion of the contract between the issuer and issued syndicate, securities placement of issued syndicate and (or) group of sellers;

group of underwriters - group of professional participants of the security market who in writing expressed consent to promote securities placement of the issuer.

2. Main requirements to professional activity of brokers and dealers

6. When implementing professional activity in the security market brokers shall observe the following requirements:

a) observe the legislation of the Kyrgyz Republic on the security market;

b) honesty and fairly to perform orders of clients and agreement obligation of purchase and sale of securities;

c) perform orders of clients in full accordance with the instructions received from them and provide to the clients the best conditions of their orders;

d) inform clients all necessary information connected with implementation of orders of clients and obligation fulfillment according to the purchase and sale agreement of securities including not to recommend to the client the transaction, without having taken measures in order that the client could understand nature of the related risks;

e) not allow manipulation the prices in the security market and compulsions of persons to purchase or security sale by provision of intentionally distorted information on securities, issuers of securities, the prices of securities, including information provided in advertizing;

e) keep confidentiality of the financial and other customer information obtained in the course of implementation of professional activity;

g) open to clients, including potential, information on any financial difficulties of the broker;

h) provide proper storage and separate accounting of securities of clients according to requirements of regulations of the Government of the Kyrgyz Republic;

i) take all measures for protection and safety of means and securities of clients;

j) approve internal procedures and rules of maintaining accounting registers and creation of the internal reporting according to requirements of regulatory legal acts of the Government of the Kyrgyz Republic;

k) approve procedure for recognition of the client as the skilled investor.

7. When implementing professional activity in the security market dealers shall observe the following requirements:

a) observe the legislation of the Kyrgyz Republic on the security market, regulations of the Government of the Kyrgyz Republic;

b) honesty and fairly to fulfill agreement obligations of purchase and sale of securities;

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