Emblem
Official Source of the
Prime Minister of the
Republic of Kazakhstan
Menu
Emblem
Close button

How development indicators of AIFC financial market changed during pandemic?

Tuesday, 07 July 2020, 18:20:17

During the pandemic, the Astana Financial Services Authority (AFSA) has simplified licensing for certain regulated activities. AFSA also developed guidance to assist firms intending to conduct regulated activities at the AIFC in the development of necessary policies and procedures. Acting General Director of the AIFC Financial Services Authority Mukhtar Bubeyev told about this in an interview for PrimeMinister.kz.

The coronavirus pandemic has made adjustments to the work of financial markets around the world. How did the AIFC regulator, represented by the Astana Financial Services Authority, respond to the challenges?

The financial services market is operating in a new, more complex environment, uncertainty has grown, risks are rising and work models are being rebuilt. In our opinion, the consequences of the pandemic significantly reduced the business activity of the real sector and the attractiveness of the financial markets of developing countries.

Since the introduction of the quarantine regime, the Committee has continuously and fully performed the functions of registration, licensing, supervision and enforcement. The Committee employees work remotely and have all the necessary digital solutions for timely and effective consideration of requests from AIFC participants and consumers of financial services and holding meetings with them. This allows the Committee to focus on its regulatory tasks to promote financial stability, ensure market integrity, protect consumers and support financial markets in AIFC.

The COVID-19 pandemic did not affect the timing of processing applications for registration and issuing licenses. For registration, companies still need 5 working days, provided that the application meets all the requirements, while the issuance of licenses is on average 15 working days for support service providers and 50 working days for financial companies.

We understand that the current business environment has changed significantly and would like to allow the AIFC business to focus on its current activities and solving operational problems. In this regard, the financial regulator acts as a key link with its mechanisms of checks and balances. The essence of our common approach is the constant development of the regulatory environment, taking into account business-friendly principles and risk-based supervision.

First, as a measure of support by the Committee, the procedures for obtaining a license for certain types of regulated activities were greatly simplified. This applies to six regulated activities: (1) investment advisory services, (2) organization of investment transactions, (3) credit advisory services, (4) credit organization, (5) insurance intermediation (without client funds) and (6) insurance management. In particular, the requirements to provide certain documentation in response to requests from potential participants to simplify the processes and requirements of AFSA are excluded.

Secondly, we have developed guidelines to assist firms intending to carry out regulated activities in the AIFC in developing the necessary policies and procedures (compliance, risk management, combating money laundering and terrorist financing, internal control and procedures, continuity business, conflicts of interest).

These steps are intended to assist firms in deciding to establish an AIFC, to help create their own systems and controls, and in the licensing process.

Thirdly, the Committee developed a package of support measures, including postponing the deadlines for submission of reports by licensees and fulfilling a number of requirements, extending the time for disclosure of information by reporting organizations regarding their annual financial report no later than Sep. 1, 2020.

Such support measures are in line with international practice. We are in constant contact with international organizations such as the International Organization of the Securities Commission (IOSCO), the International Association of Insurance Supervisory Authorities (IAIS), the Basel Committee on Banking Supervision, the International Organization for the Protection of Consumers of Financial Services (FinCoNet), as well as with foreign and national regulators and monitor the support measures they recommend in response to the aftermath of the COVID-19 pandemic. Their measures and recommendations include postponing the deadlines for reporting, fulfilling regulatory requirements, giving additional instructions on consumer protection, and the Basel Committee has postponed the deadline for introducing changes to the Basel III reform package, etc.

What are the indicators for the development of the AIFC financial markets in the pandemic?

The development of the AIFC jurisdiction and the AIFC financial markets has a positive trend. Since the beginning of the year, AIFC registered 122 new participants, of which about 70 companies were registered during the quarantine period. We are pleased that the business is making decisions on the establishment of the AIFC, despite the pandemic.

To date, 500 companies are registered under the AIFC jurisdiction. These companies represent more than 40 countries, among which the majority of companies from Kazakhstan, Russia, China, Great Britain, the USA, India, Finland, Singapore, the United Arab Emirates, the Netherlands, Turkey, Switzerland, Germany, Italy. Market infrastructure institutes, banks, asset management companies, brokers, investment advisers, and ancillary services providers are coming.

In addition, 22 companies work in the Committee's fintech laboratories, developing innovative financial services in areas such as cash / banking, digital assets, robo consulting, Islamic finance, crowdfunding and factoring.

AIFC banking sector assets reached $365 million, capital markets also showed growth, and equity capital raised through the AIFC exchange amounted to $291 million.

Does the Committee plan to take further measures to support the development of financial markets?

Yes, of course. First of all, we continue to work closely with the financial community to assess the economic impact of the pandemic on the activities of financial companies. Based on the feedback we receive, we regularly consider the possibility of providing regulated companies with support measures in a number of areas to allow them to focus on their priorities in this difficult period for economic activity.

In addition, we plan to implement a number of legislative initiatives aimed at further developing financial markets, including green financing instruments, venture financing, and providing medium-sized companies with the opportunity to raise capital on the AIFC exchange in the segment of the regional stock market. As new measures and initiatives are taken, we will talk in more detail about them.

Thank you for the interview!

It is worth noting that SWISSFE CENTRAL ASIA LTD became the 500th company in the AIFC jurisdiction. SWISSFE LTD is a privately held global real estate and asset management investment company with a unique portfolio in Germany, Holland, Australia, USA, India, Malaysia, Great Britain, Serbia, Czech Republic, China, South Korea, Spain and Denmark.

By 2020, the company manages assets worth 1.8 billion Swiss francs. SWISSFE LTD invests in high-quality innovative assets, focusing on industrial and infrastructure assets.

AIFC Governor Kairat Kelimbetov noted that two years after the official opening in July 2018, the AIFC is moving to a new stage of development, in which we are gradually moving from creating infrastructure to focusing on promoting business activity and investment in the region.

“The role of AIFC Business Connect is to support the commercial goals of our participating organizations by promoting the benefits of registering with the AIFC and ensuring the ease of doing business after the establishment of the company within the Center. I am glad that the company with a global reach SWISSFE CENTRAL ASIA LTD decided to develop its business in Kazakhstan and the region as a member of the AIFC and became the 500th company to register with the AIFC,” said James Martin, Director General of AIFC Business Connect.

According to Chair of the Board of SWISSFE CENTRAL ASIA LTD Gokan Yesilgoz, AIFC offers an excellent platform for international investment companies, including English law and tax incentives, as well as the protection of foreign investors.

“As SWISSFE CENTRAL ASIA LTD, we see the opening of new opportunities for our investment portfolio in Kazakhstan,” he emphasized.

AIFC participants carry out their activities in such areas as banking, insurance, the stock market, asset management, private banking, Islamic finance, credit ratings, legal advice, accounting, holding companies and many others. At the moment, the assets of the AIFC banking sector have reached $365 million, capital markets have also shown growth, and attracted equity capital amounted to $291 million.


News feed
07 August 2020, 12:45
About 1.4 billion tons of cargo transported by road in six months in Kazakhstan
05 August 2020, 20:13
Interdepartmental Commission considers preliminary results of implementation of Enbek and Employment Roadmap programs
05 August 2020, 13:01
Prime Minister Askar Mamin informed about SK-Pharmacy’s measures to provide drugs to combat COVID-19
04 August 2020, 19:52
Interdepartmental Commission considers issues of Kazakhstan's access to complex of candidate vaccines for COVID-19
04 August 2020, 11:22
2.6 million students to study in distance format from beginning of academic year — Ministry of Education and Science
04 August 2020, 10:11
By new academic year, Government will provide computers to 500 thousand students from most needy families
04 August 2020, 10:03
Positive trend observed in fight against COVID-19 in Kazakhstan
04 August 2020, 10:02
Daily increase in incidence of COVID-19 in Kazakhstan decreased on average by almost one and half times — Ministry of Healthcare
04 August 2020, 09:56
In Kazakhstan, 4,422 schools provided with high-speed Internet over 8 Mbps
03 August 2020, 16:04
Government session to be held Aug. 4 in Ukimet Uyi
03 August 2020, 14:20
New program of Housing Construction Savings Bank "Zhas Otbasy" started July 1 in Kazakhstan
03 August 2020, 14:10
In 2021, Housing Construction Savings Bank plans to issue mortgage online
03 August 2020, 14:00
Transforming Housing Construction Savings Bank into Otbasy Bank and providing Kazakhstanis with housing — interview with Lyazzat Ibragimova
03 August 2020, 10:47
Shakhmardan Baimanov appointed chair of Committee on Youth and Family Affairs of the Ministry of Information and Social Development
03 August 2020, 09:32
Anuar Dzhumadildayev appointed chair of Treasury Committee of the Ministry of Finance
02 August 2020, 17:30
Video Digest: Main events of the week, No. 71
31 July 2020, 08:29
Prime Minister Askar Mamin congratulates Kazakhstanis on Kurban Ait
30 July 2020, 18:30
Yerbol Ospanov appointed vice minister of labor and social protection of the population
30 July 2020, 17:15
Increasing yield, ensuring phytosanitary safety and training of research personnel — how agricultural science develops in Kazakhstan
30 July 2020, 16:04
Allen Chaizhunussov appointed chair of the Board of QazExpoCongress
30 July 2020, 13:09
Prime Minister Askar Mamin instructs to develop additional measures to support business
30 July 2020, 08:58
Roman Sklyar's working trip to Tatarstan: Creating joint ventures and implementing investment projects
29 July 2020, 20:56
Interdepartmental Commission takes special control over implementation of President’s instructions
29 July 2020, 16:57
Increasing lending to SMEs, providing employment and social benefits to population — Ruslan Dalenov on measures to support economy
28 July 2020, 21:37
Mortgage on favorable terms and construction of affordable housing — development of housing construction in Kazakhstan
28 July 2020, 19:03
Prime Minister Askar Mamin holds meeting on development of Kyzylorda region
28 July 2020, 11:17
During pandemic, Internet and electronic government services became the first necessity — Bagdat Mussin
28 July 2020, 10:20
E-commerce market amounted to 435 billion tenge in first half of 2020
28 July 2020, 10:13
In first half of 2020, e-commerce in Kazakhstan increased by one and half times
28 July 2020, 10:06
Epidemiological situation in Kazakhstan stabilizing
28 July 2020, 10:00
Since introduction of quarantine in Kazakhstan, 29% decrease in CVI cases recorded
27 July 2020, 14:26
Government session to be held July 28 in Ukimet Uyi
27 July 2020, 12:03
Changing approaches to provision of medical care reduced burden on bed capacity of Almaty — Nadyrov
27 July 2020, 11:37
After launch of mobile resuscitation teams in Almaty, number of deaths from COVID-19 decreased
27 July 2020, 11:21
Nadyrov on COVID-19 in Almaty: Unloading hospitals, switching to telemedicine and forming drug warehouse
25 July 2020, 13:22
Video Digest: Main events of the week, No. 70
24 July 2020, 18:45
Tugzhanov in Mangystau region: Meeting with medical workers and checking warehouses of SK-Pharmacy
23 July 2020, 19:07
President Kassym-Jomart Tokayev receives Prime Minister Askar Mamin
23 July 2020, 17:24
Personnel training, teaching basics of entrepreneurship, expanding microcrediting in rural areas — how Enbek State Program implemented in Kazakhstan
23 July 2020, 09:07
COVID-19 Operational Headquarters strengthens control in regions
22 July 2020, 18:42
Eliminating spontaneous dumps, separating solid waste and protecting environment — Ministry of Ecology reports on implementation of President's instructions
21 July 2020, 22:49
COVID-19 situation stabilized in Kazakhstan: Daily growth in number of cases reduced, number of recovered increased
21 July 2020, 22:03
Kazakh-Russian plant for 1,200 new jobs to be built in Zhambyl region
21 July 2020, 14:09
Regions need to actively support projects until they receive the status of subsidized — Atameken NCE
21 July 2020, 12:19
Production of building materials in Kazakhstan increased 3.3 times — Ministry of Industry and Infrastructure Development
21 July 2020, 11:05
Over 2 thousand projects worth half a billion tenge approved under Economy of Simple Things
21 July 2020, 11:04
Number of ambulance calls reduced by 23% in two weeks — Ministry of Healthcare of Kazakhstan
21 July 2020, 10:54
Kazakhstan reaches stabilized level of epidemiological situation
20 July 2020, 18:39
Asel Zhanassova appointed vice minister of trade and integration of the Republic of Kazakhstan
20 July 2020, 17:47
Prime Minister Askar Mamin introduces First Vice Minister of Digital Development Bagdat Mussin
© 2019 - 2020 Press service of the Prime Minister of the Republic of Kazakhstan.
Developed by SoftDeCo.