Kazakhstan – CM P

2024, Cross-border, Update

Country Manual Products – Update

Kazakhstan

BRP SA - Kazakhstan Nur-Sultan CM P
BRP SA – Kazakhstan Nur-Sultan CM P

BRP has updated its Country Manual Products for Kazakhstan

Source of changesAnswers
Law / RegulationYes
New Position of the AuthoritiesNo
Evolution of Expert’s InterpretationYes

Definitions & Concepts, Regulatory Overview and Behaviour Template

The Country Manual has been reviewed to ensure that the content of all the documents remains accurate and up to date.

Material changes

Some comments and content have been slightly reworded in the CM, without introducing substantive changes to reflect the regulatory situation/current interpretation of the regulatory framework more accurately.

In alignment with the Country Manual Private Banking (CM PB), the provision of macroeconomic information/reports as well as the provision of investment research and financial analysis documents/reports is only permitted on an occasional basis onshore in Kazakhstan (at target). Accordingly, the Country Manual Behaviour Template (CM P BT) hence answers the relevant onshore scenarios with “Grey zone/YES”.

It is now highlighted that the provision of investment services and personalised recommendation lists are generally not permitted by foreign (unlicensed) service providers onshore in Kazakhstan (at target) due to the missing local license. Accordingly, the CM P BT hence answers the relevant onshore scenarios with “NO”.

Furthermore, in order to better reflect the existing “current market practice” regarding the active provision of advisory services, the CM P BT now answers the following cross-border scenarios as follows:

Ongoing advice: “Grey zone/YES – If based on an ongoing advisory agreement requested by the client”, and

Spot advice: “Grey zone/YES – Only within existing clients relationship”.

In further alignment with the CM PB, it is highlighted that the provision of execution only services by foreign (unlicensed) service providers onshore in Kazakhstan (at target) triggers local licensing requirements. It is therefore only permitted to accept unsolicited client orders in the relevant scenarios if they are transmitted to the service provider’s country of establishment for execution. Accordingly, the CM P BT therefore answers the relevant scenarios with “Grey zone/YES”.

Finally, if an investor, on his own initiative, requests general or specific information about one or more products, and the activity of the service provider is strictly limited to this request, it is considered that the “local distribution rules” are not triggered, provided that the service provider is located abroad, i.e. the relevant services are provided either offshore or on a cross-border basis into Kazakhstan (regardless of the type of “reverse solicitation”). However, Kazakhstan does not explicitly recognise the concept of “reverse solicitation”. Therefore, the CM P BT now answers the relevant “reverse solicitation” scenarios with “Grey zone/YES – No formal rules”.

Non-material changes

 Some comments and content have been slightly reworded in the CM, without introducing substantive changes to reflect the regulatory situation/current interpretation of the regulatory framework more accurately.

For more information, please contact us: info@brpsa.com

Geneva, October 4th, 2024