Entire Act

2.2.10. Advising on Investments

2.2.10.1. General description

Advising on Investments is listed in section 10 of Schedule 1 of GEN.  It means giving advice to a Person:

(a)     in the capacity as an investor or potential investor; or

(b)     in the capacity as agent for an investor or a potential investor,

on the merits of his (i) buying, (ii) selling, (iii) holding, (iv) subscribing for or (v) underwriting a particular Investment (whether as principal or agent).

“Advice” includes a statement, opinion or report:

(a)     where the intention is to influence a Person, in making a decision, to select a particular Investment or an interest in a particular Investment; or

(b)     which could reasonably be regarded as being intended to have such an influence.

An Authorised Firm authorised to carry on the regulated activity of Advising on Investments is subject to prudential supervision and must comply with AIFC Prudential Rules for Investment Firms.

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.

Are you planning to offer your services to legal entities or natural persons – residents of Kazakhstan that are not AIFC Participants?

Yes:

 

Your services will be subject to the AIFC Rules on Currency Regulation:

 

Name of allowed activity:

Advising on Investments. This activity also includes investment banking services of financial consulting (M&A structuring, private equity, restructuring, hedging).

 

Relevant reference to Schedule 2 to the AIFC Rules on Currency Regulation:

1)     2 in the list of related services.

2)     3.1.2 in the list of financial services.

 

Type of currency:

Any currency

 

Transaction:

Via AIFC Banks: only foreign currency

Via second-tier banks: any currency

 

Currency reporting:

No specific reporting for a financial service.

Transactional reporting may be applicable (see Chapter 4 of PERG for more details). 

 

No:

Subrule 3.3.2 of AIFC Rules on Currency Regulation applies.

For more details see Chapter 4 of PERG.

2.2.10.2. Exclusions

There are none.