2.2.2. Dealing in Investments as Agent
2.2.2.1. General description
Dealing in Investments as Agent is listed in section 2 of Schedule 1 of GEN. The activity consists of:
(a) buying;
(b) selling;
(c) subscribing for; or
(d) underwriting
any Investment as agent (i.e. for and on behalf of another person or group).
An Authorised Firm authorised to carry on the regulated activity of Dealing in Investments as Agent is subject to prudential supervision and must comply with AIFC Prudential Rules for Investment Firms, as well as AIFC Banking Business Prudential Rules and Banking Prudential Guideline if applicable to a PRU Dealing Investment Firm.
Currency regulation
Currency transactions will be performed via AIFC Banks if processed in only foreign currency, and via second-tier banks in any currency. For more details of transactional implications see Chapter 4 of PERG.
The table below illustrates currency regulation implications if services are offered to residents of Kazakhstan that are not AIFC Participants.
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Are you planning to offer your services to legal entities or natural persons – residents of Kazakhstan that are not AIFC Participants? |
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Yes:
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Your services will be subject to the AIFC Rules on Currency Regulation: |
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Name of allowed activity: |
Brokerage services: 1) on international markets, at Astana International Exchange with regard to securities issued under Acting Law of the AIFC and foreign law; 2) at Astana International Exchange with regard to Kazakhstani securities. Note: brokerage services regarding Kazakhstani securities are allowed if an AIFC Participant has relevant ARDFM* licence and has access to Astana International Exchange Central Securities Depository. * ARDFM – Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market. |
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Relevant reference to Schedule 2 to the AIFC Rules on Currency Regulation: |
3.3 in the list of financial services. |
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Type of currency: |
Any currency |
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Transaction: |
Via AIFC Banks: only foreign currency Via second-tier banks: any currency |
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Currency reporting: |
Quarterly (no later than the 10 (tenth) day of the month following the reporting month) reports on securities to the AFSA in accordance with Annex 3 to Schedule 5. Transactional reporting may be applicable (see Chapter 4 of PERG for more details).
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No: |
Subrule 3.3.2 of AIFC Rules on Currency Regulation applies. |
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For more details see Chapter 4 of PERG.
2.2.2.2. Exclusions
A Person does not Deal in Investments as Agent if the activity:
(a) is carried on in the course of providing legal or accountancy services which do not otherwise consist of the carrying on of financial services;
(b) may reasonably be regarded as a necessary part of any other services provided in the course of providing legal or accountancy services; and
(c) is not remunerated separately from the other services.
A Person does not Deal in Investments as Agent if that Person:
(a) is merely receiving and transmitting a Client order in respect of an Investment; and
(b) does not execute the Client order for and on behalf of the Client or otherwise commit the Client to the transaction relating to the relevant Investment.
However, this may nevertheless amount to Arranging Deals in Investment.
An exchange does not Deal in Investments as Agent merely by taking action in accordance with its Default Rules.