2.6.1. Persons eligible for Membership

(1) An Authorised Market Institution, may only admit as a Member a Person who satisfies admission criteria set out in its Membership Rules and who is either:

(a) an Authorised Firm whose Licence permits it to carry on the Regulated Activities of Dealing in Investments; or

(b) a Recognised Non-AIFC Member; or

(c) Person intending to deal in Commodity Derivatives or Environmental Instruments who meets the criteria in GEN 1.1.14; or

(d)   a Person by providing that Person with access to the facility, on which Security Tokens are traded or cleared or both traded and cleared, in respect of their trading or clearing of Investment Tokens only.

(2) [intentionally omitted]

(3) An Authorised Market Institution must ensure that a Member who is a Person referred to in (1)(c), or a Person referred to in 1(d) whose access is only for trading or clearing of Commodity Derivative Tokens or Environmental Instrument Tokens, is a Professional Client and treat the Person as such.

For the purposes of this rule, Professional Client has the same meaning as defined in COB Chapter 2.

(4) Before admitting a Person referred to in (1)(c) as a Member, an Authorised Market Institution must undertake due diligence to ensure that such a Person:

(a) is of sufficient good repute;

(b) has a sufficient level of competence, experience and understanding of relevant Investments., Financial Services, transactions and any associated risks, including appropriate standards of  conduct for its staff permitted to use its order entry system; and

(c) has adequate organisational arrangements, including financial and technological resources, which are appropriate to allow it to discharge its obligations in respect of their category of membership at the Authorised Market Institution.

(5) An Authorised Market Institution must keep records of the procedures which it has followed under (3), including any documents that evidence the Person's assessment. The records must be kept for at least six years from the date on which the business relationship with a Person ended.

(6)      Before admitting a Person referred to in (1)(d), an Authorised Market Institution must undertake due diligence to ensure that the Person: 

(a) is of sufficient good repute;

(b) has a sufficient level of competence, experience and understanding of relevant Investments, Financial Services, transactions and any associated risks, including appropriate standards of conduct for its staff permitted to use its order entry system; 

(c) has adequate financial and technological resources to meet the Business Rules of the facility;

(d) does not pose any operational risks to the orderly and efficient functioning of the facility’s trading or clearing systems; and

(e) does not pose any money laundering or terrorist financing risks.

2.6.2. Admission criteria

An Authorised Market Institution must ensure that access to its facilities is subject to criteria designed to protect the orderly functioning of the market and the interests of investors.

2.6.3. Membership Rules

The Membership Rules of an Authorised Market Institution must specify the obligations imposed on users or Members of its facilities arising from:

• (a) the constitution and administration of the Authorised Market Institution;
• (b) where appropriate rules relating to transactions on its trading venues;
• (c) admission criteria for Members;
• (d) where appropriate rules and procedures for clearing and settlement of transactions; and
• (e) where appropriate rules and procedures for the prevention of Market Abuse, money laundering and Financial Crime in accordance with AMI 2.8.

2.6.4. Undertaking to comply with AIFC rules

An Authorised Market Institution may not admit as a Member a Person referred to in 2.6.1.(1)(b) or (c) unless the Person:

1. (a) agrees in writing to submit unconditionally to the jurisdiction of the AFSA in relation to any matters which arise out of or which relate to its use of the facilities of the Authorised Market Institution;
2. (b) agrees in writing to submit unconditionally to the jurisdiction of the AIFC Courts in relation to any disputes, or other proceedings in the AIFC, which arise out of or relate to its use of the facilities of the Authorised Market Institution;
3. (c) agrees in writing to subject itself to the AIFC laws in relation to its use of the facilities of the Authorised Market Institution; and
4. (d) where the Recognised Non-AIFC Member is incorporated outside the Republic of Kazakhstan, appoints and maintains at all times, an agent for service of process in the AIFC.

Guidance

1. (1)Service of process is the procedure by which a party to a lawsuit (Claimant) gives an appropriate notice of initial legal action (Claim Form) to another party (Defendant), in an effort to exercise jurisdiction over that Person so as to enable that Person to respond to the proceeding before the court. Notice is furnished by delivering a set of court documents (called "process") to the Person to be served. Service of a Claim Form is defined in clause 4.9 of the AIFC Court Rules. Acknowledgement of process and consequences of not filing an acknowledgment of service are defined in clause 7.4 of the AIFC Court Rules. Methods of service are defined in Part 5 of the AIFC Court Rules.
2. (2)An agent for service of process is a service provider having legal and real presence in the AIFC.
3. (3)The main role of agent for service of process is to receive service of process in the AIFC on behalf of a Person, acknowledge the service of process, and forward the process to such Person once it is received.

2.6.5. Lists of users or Members

The Authorised Market Institution must make arrangements regularly to provide the AFSA with a list of its Members. The requirements in AMI 2.6 do not apply to an Authorised Crowdfunding Platform