42. Applications for Controlled Function approval

(1) The AFSA may make Rules detailing:

• (a) the procedure for application to the AFSA for registration as an Approved Individual including requirements as to the form and content of the application, any fees payable by an Authorised Person in respect of its Approved Individuals and the procedures for modification or withdrawal of an Approved Individual’s registration;
• (b) principles or other requirements to which Approved Individuals are required to adhere in the performance of Controlled Functions;
• (c) requirements for Approved Individuals to report to the AFSA; and
• (d) the circumstances in which registration of an Approved Individual may be withdrawn at the instance of the AFSA.

(2) The AFSA may waive all or any part of its generally adopted requirements as to the form and content of an application under section 42(1) if it is satisfied that such information is not necessary in the light of any registration, authorisation or approval the relevant individual may have in a jurisdiction outside the AIFC.

43. Criteria for approval

(1) The AFSA may only authorise an individual to carry on a Controlled Function if it is satisfied that the individual is fit and proper to be an Approved Individual.

(2) In making this assessment the AFSA must have regard to:

• (a) the individual's integrity;
• (b) the individual's competence and capability;
• (c) the individual's financial soundness;
• (d) the individual's proposed role within the Authorised Person; and
• (e) any other matters that the AFSA considers to be relevant to the application.

(3) The AFSA will not regard an individual as fit and proper if the individual:

• (a) is bankrupt; or
• (b) has been convicted of a serious criminal offence; or
• (c) is the subject of an administrative or civil finding; or
• (d) is incapable, through mental or physical incapacity, of managing his affairs.

44. Grant or rejection of application

(1) The AFSA may:

• (a) grant or vary an approval under section 42 either without conditions restrictions or requirements or with such conditions restrictions or requirements as it considers appropriate; or
• (b) reject the application.

(2) Where the AFSA grants an application for approval or variation of an approval under section 42, the AFSA will notify the Authorised Person accordingly.

(3) If the AFSA rejects an application for approval or variation of an approval under section 42, the AFSA must promptly inform the Authorised Person in writing of such rejection and, where requested by the Authorised Person, the reasons for such refusal, and of the Authorised Person’s right to appeal that decision to the AIFC Court.

(4) If an applicant decides to appeal the AFSA’s decision to the AIFC Court, the time for instituting an appeal commences from the date when the rejection was given to an applicant.

45. Residency requirement for Approved Individual

If the AFSA considers it appropriate, it may require an Authorised Person to ensure that a particular Controlled Function is carried on by an Approved Individual who is resident in the Republic of Kazakhstan.

45-1. Suspending or withdrawing Approved Individual status

(1) If the AFSA reasonably concludes that:

(a) an Approved Individual is in breach of, or has been in breach of, an obligation that applies as a result of such individual’s Approved Individual status; or

(b) an individual is no longer fit and proper to perform the role of an Approved Individual within the Authorised Person;

it may either restrict the individual from carrying on a Controlled Function or suspend or withdraw the individual’s Approved Individual status.

(2) The AFSA may withdraw an individual’s Approved Individual status if:

(a) the individual becomes bankrupt;

(b) the individual is convicted of a serious criminal offence;

(c) the individual becomes incapable (through mental or physical incapacity) of managing the relevant affairs;

(d) the individual or the relevant Authorised Person requests the AFSA to withdraw the relevant status; or

(e) the Licence of the relevant Authorised Person is withdrawn.

(3) If the AFSA:

(a) conducts an investigation under section 114; and

(b) in the course of such investigation believes on reasonable grounds that an individual has engaged in serious misconduct that may form grounds for the withdrawal of the individual’s Approved Individual status;

it may suspend the individual’s Approved Individual status for the duration of the investigation or related proceedings insofar as such investigation or proceedings relate to the individual.

(4) An individual commits a contravention if the individual carries on a Controlled Function:

(a) in breach of a provision of these Regulations or Rules made thereunder or other legislation administered by the AFSA that applies to that individual;

(b) contrary to a restriction imposed under subsection (1); or

(c) after the individual’s Approved Individual status has been suspended or withdrawn under subsections (1), (2) or (3).

(5) The AFSA may vary or withdraw a restriction or suspension imposed under this section if it is reasonable to do so.

(6) The AFSA may act under subsection (5) on its own initiative or at the request of the individual or Authorised Person.

(7) The decision-making procedures in Schedule 1 apply to a decision made by the AFSA under this section.

46. Criteria for appointment of Designated Individual

(1) Before appointing an individual to carry on a Designated Function, an Authorised Person must take reasonable steps to satisfy itself that the individual is fit and proper to be a Designated Individual and to carry on the relevant Designated Function.

(2) In making this assessment the Authorised Person must have regard to:

• (a) the individual's integrity;
• (b) the individual's competence and capability;
• (c) the individual's financial soundness;
• (d) the individual's proposed role within the Authorised Person; and
• (e) any other matters that the AFSA may prescribe by Rules.

(3) An Authorised Person may not regard an individual as fit and proper if the individual:

• (a) is bankrupt; or
• (b) has been convicted of a serious criminal offence; or
• (c) is the subject of an administrative or civil finding; or
• (d) is incapable, through mental or physical incapacity, of managing his affairs.

47. Review of appointments by the AFSA

(1) An Authorised Person must maintain records of the assessment process that it conducts in respect of each Designated Individual appointed by it.

(2) An Authorised Person must make such records available to the AFSA on request.

(3) If the AFSA considers that a Designated Individual is not fit and proper, it may take such steps as it considers necessary or desirable in the interests of the AIFC.