2.2.20.1. General description

Arranging a Credit Facility is listed in section 20 of Schedule 1 of GEN. It means making arrangements for the provision of a Credit Facility by one or more Persons.

The definition of a Credit Facility is given in the AIFC Glossary.

Generally, the following activities constitute Arranging a Credit Facility:

(a)     Introducing potential borrowers to a credit provider (who can be in the AIFC or outside the AIFC);

(b)     Assisting a potential borrower to obtain credit, such as completing application forms and other processes relevant to the transaction;

(c)     Negotiating terms of credit, including any fees payable to the arranger; and

(d)     Arranging collateral or other assurances needed by the potential borrower to obtain credit.

The guidance under ‘Arranging Deals in Investments’ is generally relevant for ‘Arranging a Credit Facility’, although the activities relate to ‘credit’ in this context, instead of ‘Investments’. Therefore, a reference to Investment in that guidance should be read as ‘credit’ for the purposes of ‘Arranging a Credit Facility’.

An Authorised Firm authorised to carry on the regulated activity of Arranging a Credit Facility is subject to prudential supervision and must comply with AIFC Banking Business Prudential Rules.

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.

For more details see Chapter 4 of PERG.

2.2.20.2. Exclusions

A Person does not carry on the Regulated Activity of Arranging a Credit Facility if the person:

(a)     is to be a party to the Provision of Credit Facilities in question; or

(b)     merely provides the means by which a Person providing a Credit Facility communicates with the Person to whom the Credit Facility is or is to be provided.

A Person does not carry on the Regulated Activity of Arranging a Credit Facility if the activity:

(a)     is carried on in the course of Providing Legal Services or Providing Accountancy Services, which does 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 Services or Providing Accountancy Services; and

(c)     is not remunerated separately from the other services.