11.1.1. Application

TRR 11 applies to every AIFC-Incorporated Takaful Operator.

11.1.2. AIFC Takaful Business Transfer Scheme - definition

An AIFC Takaful Business Transfer Scheme is a scheme for transfer of the whole or part of the Takaful Business undertaken by an AIFC-Incorporated Takaful Operator.

11.2.1. Requirement for order of the AIFC Court

No AIFC Takaful Business Transfer Scheme is to have effect unless an order sanctioning the scheme (a Sanction Order) has been made by the AIFC Court under section 112 of the FSFR.

11.2.2. Application for a Sanction Order

An application for a Sanction Order must be made by:

(1) whichever of the transferor or transferee concerned is an AIFC-Incorporated Takaful Operator; or

(2) by both transferor and transferee, if both are AIFC-Incorporated Takaful Operators.

11.2.3. Requirements on the applicant

Subject to such directions as the AFSA may give pursuant to section 112(2) of the FSFR, the applicant for a Sanction Order must ensure that:

(a) the application for a Sanction Order is accompanied by

1. (i) a written report on the terms of the scheme (the Scheme Report) that complies with rule 11.3.2; and
2. (ii) a written summary of the scheme (the Scheme Summary) that complies with rule 11.3.3;

(b) notice of the application for the Sanction Order is given to every policyholder resident in Kazakhstan who is affected by the scheme, in accordance with rule 11.4.1; and

(c) notice of the application for the Sanction Order is published in accordance with rule 11.4.2.

11.3.1. The Skilled Person

A Scheme Report may only be made by a person (the Skilled Person):

(a) appearing to the AFSA to have the skills necessary to enable him to make a proper report;

and

(b) nominated or approved for the purpose, in writing, by the AFSA.

11.3.2. The Scheme Report

A Scheme Report must

• (a) be in a form approved by the AFSA;
• (b) include a reasoned opinion as to whether or not the scheme (if it is sanctioned by the Court) is expected to have any material adverse impact on any of the policyholders of the transferor or the transferee; and
• (c) include a reasoned conclusion as to whether (if the scheme is sanctioned by the Court) each AIFC-Incorporated Takaful Operator concerned with the scheme (whether as transferee or as transferor) will, taking the scheme into account, comply with the requirements of TRR.

11.3.3. The Scheme Summary

The Scheme Summary must

(a) contain sufficient information, in language that is clear, fair and not misleading, to enable policyholders to understand how they may be affected if the scheme is sanctioned by the Court;

(b) be prepared or approved by the Skilled Person; and

(c) be approved by the AFSA.

11.4.1. Notice given to policyholders

(1) The notice given to policyholders must include:

• (a) Details of the place or places and times at which and the period during which an affected policyholder may obtain a copy of the scheme and any associated documentation; and
• (b) the Scheme Summary referred to in rule 11.8.

(2) The period in (1) must be not less than 30 days, or such other period as the AFSA may direct in writing.

11.4.2. Publication of notice

(1) The applicant must publish notice of the application for the Sanction Order.

(2) The notice in (1) must

• (a) be approved by the AFSA before publication;
• (b) be published not less than three months (or such other period as the AFSA may direct in writing) before the hearing at which the Court will be asked to sanction the scheme; and
• (c) be published in two national papers in Kazakhstan, or in such other publications as the AFSA may direct in writing.