RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of July 26, 2013 No. 184

About approval of Rules of implementation of custodial activities in the security market of the Republic of Kazakhstan

According to the Social code of the Republic of Kazakhstan, the laws of the Republic of Kazakhstan "About the security market", "About investment and venture funds", "About project financing and securitization", "About Fund of guaranteeing insurance payments" the Board of National Bank of the Republic of Kazakhstan DECIDES:

1. Approve Rules of implementation of custodial activities in the security market of the Republic of Kazakhstan.

2. This resolution becomes effective after ten calendar days after day of its first official publication.

Approved by the Resolution of Board of National Bank of the Republic of Kazakhstan of July 26, 2013 No. 184

Rules of implementation of custodial activities in the security market of the Republic of Kazakhstan

These rules of implementation of custodial activities in the security market of the Republic of Kazakhstan (further - Rules) are developed according to the Civil code of the Republic of Kazakhstan (General part), the Social code of the Republic of Kazakhstan, the laws of the Republic of Kazakhstan "About the security market" (further - the Law on the security market), "About investment and venture funds" (further - the Law on investment funds), "About project financing and securitization", "About Fund of guaranteeing insurance payments" (further - the Law on Fonda) and determine conditions and procedure of custodial activities in the security market.

Chapter 1. General provisions

1. For the purposes of Rules the following concepts are used:

1) internal documents of custodian - documents of custodian which regulate conditions and procedure for activities of custodian, its bodies, structural divisions (branches, representations), workers, rendering services and procedure for their payment;

2) custodian - the professional participant of the security market performing accounting of financial instruments and money of clients and confirmation of the rights by them, storage of documentary financial instruments of clients with acceptance on himself obligations on their safety and other activities according to legal acts of the Republic of Kazakhstan and National Bank of the Republic of Kazakhstan (further - National Bank);

3) the custodial agreement - the agreement of storage and the order signed by custodian and its client, determining procedure for provision to the client of services in custodial servicing;

4) the client's assets - set of the assets belonging to physical persons and legal entities, or constituting mutual investment fund, transferred to custodial servicing;

5) authorized body - the state body performing regulation, control and supervision of the financial market and the financial organizations.

2. The custodian performs custodial activities in the security market according to the legislation of the Republic of Kazakhstan, the custodial agreement and internal documents of custodian.

3. No. 26 is excluded according to the Resolution of Board of the Agency of the Republic of Kazakhstan on regulation and development of the financial market of 12.02.2021

4. In the premises of head office of custodian and its branches participating in implementation of custodial activities in places, readily available for clients, notarially attested copies of licenses for custodial activities and safe transactions (services in storage of the securities issued in documentary form, documents and values of clients including leasing of safe boxes, cases and rooms, and also the list of documents) which the custodian on the first demand of the client provides it for acquaintance according to Item 5 of Rules are placed.

5. The custodian on the first demand of the client within two working days from the date of receipt of the requirement (request) of the client represents to it for acquaintance:

1) copies of the Rules and other regulatory legal acts of authorized body regulating implementation of custodial activities in the security market;

2) copies of the internal documents signed by the first head of custodian or person replacing it;

3) the financial reporting of custodian for the last accounting period;

4) data on observance of prudential standard rates;

5) data on the measures of supervising reaction and sanctions applied by authorized body to this custodian and (or) its leading employees during the last 12 (twelve) consecutive calendar months.

6. For provision to clients of copies of the documents specified in Item 5 of Rules, the custodian levies payment in the amount of, not exceeding the size of expenses on their production (forming).

7. The bank of the second level (further - bank) combining custodial activities in the security market with other types of activity in the financial market provides:

1) availability in organizational structure of bank separate (separate) the division (divisions) performing (performing) custodial activities;

2) non-admission of accomplishment by the division (divisions) performing (performing) custodial activities, and employees of the division (divisions) of the functions and obligations relating to other types of activity in the financial market this (data), and also transfers (delegation) of the rights and powers of employees of the division (divisions) this (data) to the employees of divisions of bank who are not performing custodial activities (further - other divisions);

3) availability at the division (divisions) performing (performing) custodial activities certain rooms;

4) availability of the systems regulating access to rooms, the occupied division (divisions) performing (performing) custodial activities;

5) availability at the division (divisions) performing (performing) custodial activities the systems of accounting and document flow separate of system of accounting and document flow of other divisions of bank;

6) non-admission of access to employees of other divisions of bank to documentation and software and hardware complexes (including to electronic data arrays) division (divisions) of the bank performing (performing) custodial activities;

7) non-presentation by leading employees and employees of information which is available for division (divisions) of the bank performing (performing) custodial activities (to which they have access to force of the position or the rights and powers provided to them), to employees of other divisions of bank.

8. The requirement of subitems 6) and 7) of Item 7 of Rules does not extend to cases of representation by leading employees and employees of information which is available for division (divisions) of the bank performing (performing) custodial activities (to which they have access to force of the position or the rights and powers provided to them), to employees of bank as whom the organization and implementation of internal audit in bank and internal control behind compliance of activities of bank to requirements of the legislation of the Republic of Kazakhstan, including regulatory legal acts of authorized body, internal regulations and procedures of bank enters.

Chapter 2. Custodial agreement

9. The custodial agreement is signed in writing between custodian and the client.

In case of investment of temporarily free receipts on the allocated assets of special finance company the custodial agreement is signed between custodian, special finance company and managing investment portfolio in which management there are allocated assets of special finance company (further - the managing director of investment portfolio of special finance company).

For the purpose of storage and accounting of the pension assets which are in trust management of the managing director of investment portfolio, the custodial agreement is signed in writing between custodian, the single accumulation pension fund and managing investment portfolio.

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