The FMSA recently introduced amendments providing new reporting standards and prudential norms for broker/ dealer, IMPAs and investment portfolio managing companies, including the following:

  • new requirements for organizations licensed to perform broker and/or dealer activity, IMPAs and investment portfolio managing companies as to reporting of their own assets which are pledged or otherwise encumbered, effective of 8 December 2009;
  • a new calculation methodology for the capital and minimum capital of broker-dealers, securities registrars and investment management organizations, effective of 23 September 2009, with certain provisions effective of 1 July 2010;
  • new provisions extending certain dealer/broker regulations to investment managers of pension funds that engage in broker-dealer activity, establishing personal liability of certain broker-dealer employees, clarifying the legal nature of broker-dealer agreements (commission or agency), setting out additional requirements as to broker-dealer account opening documentation and customer instruction forms, effective of 19 October 2009; and
  • new requirements in respect of internal policies and procedures of a broker-dealer/investment manager relating to general operations, investment committees, internal control and audit units and requirements for the information exchange systems to apply to both broker-dealer organizations and investment fund portfolio managers, effective of 29 March 2010.

Other Actions

A number of amendments and newly-adopted regulations setting out various guidelines, prudential norms, reporting requirements, and internal controls and procedures for the activities at the Kazakhstan financial market became effective in the end of 2009 and beginning of 2010, including the following:

  • new provisions outlining general conditions for issue, placement, circulation and repayment of mid-and long-term indexed and unindexed securities that can be issued by the local authorities, effective of 2 October 2009;
  • requirement for an investment fund to carry out impairment testing of its financial assets and the procedure for performance of such testing, setting out the grades for appraisal of a financial condition of the issuer and the criteria for each grade, effective of 1 July 2010; and
  • new requirements for currency operations reporting by banks and increase in the threshold of currency operations subject to registration and notification with the NBK from USD 300 thousand to USD 500 thousand, effective of 1 November 2009.