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The document ceased to be valid since January 1, 2019 according to Item 2 of the Resolution of Board of National Bank of the Republic of Kazakhstan of October 29, 2018 No. 252

RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of July 26, 2013 No. 183

About approval of Rules of application of limited corrective actions to the subject of the security market and (or) person having signs of the large participant, to the large member of the managing director of investment portfolio

(as amended of the Resolution of Board of National Bank of the Republic of Kazakhstan of 19.12.2015 No. 250)

According to the Law of the Republic of Kazakhstan of July 2, 2003 "About the security market" the Board of National Bank of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed Rules of application of limited corrective actions to the subject of the security market and (or) person having signs of the large participant, to the large member of the managing director of investment portfolio.

2. Recognize invalid the following regulatory legal acts:

2) Item 2 of the resolution of Board of National Bank of the Republic of Kazakhstan of March 29, 2013 No. 79 "About modification of some regulatory legal acts of National Bank of the Republic of Kazakhstan concerning application of limited corrective actions" (registered in the Register of state registration of regulatory legal acts at No. 8457, No. 96 published on July 2, 2013 in the Yuridicheskaya Gazeta newspaper (2471)).

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

Chairman of National Bank

G. Marchenko

Approved by the Resolution of Board of National Bank of the Republic of Kazakhstan of July 26, 2013 No. 183

Rules of application of limited corrective actions to the subject of the security market and (or) person having signs of the large participant, to the large member of the managing director of investment portfolio

These rules of application of limited corrective actions to the subject of the security market and (or) person having signs of the large participant, to the large member of the managing director of investment portfolio (further - Rules) are developed according to the Law of the Republic of Kazakhstan of July 2, 2003 "About the security market" (further - the Law) and establish procedure for application by authorized body on regulation, control and supervision of the financial market and the financial organizations (further - authorized body) limited corrective actions to the subject of the security market and (or) the large member of the managing director of investment portfolio and person having signs of the large participant (further - the large member of the managing director of investment portfolio).

The procedure for application of limited corrective actions established by Rules does not extend to the professional participant of the security market performing based on the license of authorized body activities for management of investment portfolio with the right of attraction of voluntary pension contributions (the Voluntary accumulation pension fund).

1. General provisions

1. In cases of detection of violations of prudential standard rates by authorized body and (or) other regulations and limits, obligatory to observance, by the subject of the security market, violations of the law of the Republic of Kazakhstan, identification of wrongful acts or failure to act of officials and workers of subjects of the security market, and also failure to carry out of other requirements of authorized body provided by the Law, the authorized body applies limited corrective action to the subject of the security market.

2. The authorized body applies limited corrective action taking into account one or several of the following factors:

1) risk level.

The risk for the purposes of Rules is understood as probability of emergence of negative consequences in the form of violation of the rights and freedoms of citizens, causing damage to interests of society and to the state as a result of non-execution and (or) incomplete execution by the subject of the security market of the requirements established in the sphere of civil, financial legislations (further - the legislation of the Republic of Kazakhstan), when implementing activities, and also deteriorations in financial condition of the subject of the security market;

2) capabilities to correct situation as a result of application of the chosen corrective action;

3) nature of violation and possible consequences for the subject of the security market;

4) frequencies and durations of violation;

5) awarenesses of leading employees of the subject of the security market on the allowed violation;

6) general financial condition of the subject of the security market.

The general financial condition of the subject of the security market is determined based on this to the reporting, materials of checks, audit reports, fulfillment of requirements by availability of risk management systems and internal control, and also results of interaction of management of the subject of the security market with shareholders for the purpose of receipt of financial support in case of deterioration in financial condition of the subject of the security market.

3. As limited corrective actions the authorized body applies the following limited measures:

The written instruction, obligatory for execution, gives 1);

2) issues the written warning;

3) is constituted with the subject of the security market by the written agreement which is subject to obligatory signing;

4) discharges members of investment committee from fulfillment of duties as a part of investment committee.

4. The authorized body applies to large members of the managing director of investment portfolio, the measures given in subitems 1) and 4) of Item 3 of Rules if determines that violations, wrongful act (failure to act) of specified persons, officials and (or) workers of the large members of the managing director of investment portfolio who are legal entities worsened financial condition of the managing director of investment portfolio.

5. For the purposes of Rules violations, wrongful acts or failure to act of persons specified in item 4 of Rules which worsened financial condition of the managing director of investment portfolio are understood as actions as a result of which the managing investment portfolio, allowed violation of the prudential standard rate of sufficiency of equity, and also if the specified actions became origin of the factors influencing deterioration in financial position of the managing director of investment portfolio, listed in article 3-2 of the Law.

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