Chapter 1. Introduction

1.The purpose of this Manual for Preparation of Returns for Investment Firms (hereinafter – Manual) is to outline templates for reporting on financial, prudential and financial conduct performance of the Astana International Financial Centre (hereinafter – AIFC) Participants authorised investment firms (hereinafter – PRU Investment Firms) and provide guidance on their completion. This Manual is updated at the situation may require.

2. The Manual complies with the AIFC General Rules (AIFC Rules No. FR0001 of 2017, hereinafter – GEN), AIFC Prudential Rules for Investment Firms (AIFC Rules No. FR0011 of 2017, hereinafter – PRU INV), AIFC Conduct of Business Rules (AIFC Rules No. FR0005 of 2017, hereinafter – COB) and developed to meet supervisory goals of the Astana Financial Services Authority (hereinafter – AFSA).

Chapter 2. Reporting templates for PRU Investment Firms.

3.The purpose of this Chapter is to set out reporting templates and provide PRU Investment Firms with instructions on the preparation of financial and prudential returns.

4.Reporting templates include 3 main areas of supervision:

1. 4.1.Financial statement templates;
2. 4.2.Prudential supervision templates;
3. 4.3.Business Conduct supervision templates.

5.Financial statement reporting templates consist of:

6.     Prudential supervisions reporting templates consist of:

7.Business Conduct supervision reporting templates consist of:

Chapter 3. Reporting Rules

8. PRU Investment Firms are submitting financial, prudential and business conduct returns outlined in para 5, 6 and 7. of the Manual with explanatory note disclosing the main reports outcomes, for following reports within submission periods outlined below:
     8.1. Quarterly returns within a month period after the reporting quarter ends; and
     8.2. Annual returns within a 4 months period after the reporting year ends. Annual prudential report must contain  certification by the same auditor, responsible for audit  of annual financial statements;
     8.3. Submission periods outlined in 8.1) and 8.2) of reports can be extended by the AFSA written notice.

9. If any PRU Investment firm breaches (or expects to breach) a prudential requirement set by the AFSA or Financial Services Regulator in jurisdiction of incorporation of Externally Regulated PRU Investment Firm, it must immediately notify the AFSA and must give the AFSA any relevant documents (including all relevant documents submitted to that Financial Services Regulator).

10. Reporting must be made by PRU Investment Firms in thousands of USD.

11. Reports must be submitted to the AFSA by way of official e-communication channels. The transmission should include scanned copies of signed reports and supporting Ms Excel documents.

Chapter 4. Conclusion

12. PRU Investment Firms within a month after reporting period ends must submit reports of  significant shareholders listed below, if such reports are required to be created, in English language. If such reports are required to be created.
      12.1. Audited annual financial reports of significant shareholders;
      12.2. Annual report of significant shareholder, that includes annual information on business performance, implementation of strategic goals and other information about shareholders.

13. Externally Regulated PRU Investment Firms (incl. doing business in the AIFC as a branch of  investment firm) within a month after approval, must submit Head Office Investment Firm’s  reports in English language.
      13.1. Audited annual financial report;
      13.2. Annual report, that includes annual information on business performance, implementation of strategic goals and other information about Head Office Investment Firm;
      13.3. Copies of any Financial and Prudential reports that the Externally Regulated PRU Investment Firm is required to provide to any other Financial Services Regulator;

14. PRU Investment Firms must submit their audited financial report in compliance with requirements of GEN. The submission of reports should include explanations regarding significant differences in each return, where it is applicable.

15. The AFSA by written Notice may extend the submission periods of returns outlined in this Manual.

16. PRU Investment Firms should be informed of amendments to this Manual within 10 working days after publication on the AFSA official website.

Annex 1.1.

expenditures to be paid, line 32. Liabilities on Financial derivatives, line 33. Liabilities on Current tax obligations, line 34. Liabilities on Deferred tax obligations, line 35. Liabilities on Advances received, line 36. Liabilities on Obligations on employee benefits line 37. Head Office Accounts and line 38. Other Liabilities.

Line 31. Liabilities on Accrued commission expenditures to be paid – is the total of Liabilities on Accrued commission expenditures to be paid detailed by line 31.1. on transfer operations, line

31.2. on clearing operations, line 31.3. on cashier operations, line 31.4. on safe operations, line

31.5. on collection of banknotes, coins and other valuables, line 31.6. on trust operations, line

31.7. on stock exchange services, line 31.8. on custody services, line 31.9. on brokerage services, line 31.10. on services of the Central depository, line 31.11. on services on Common registrar and line 31.12. on services of other professional participants of securities markets.

Line 32. Liabilities on Financial derivatives – is the total of Liabilities on financial derivatives detailed in line 32.1. obligations on futures operations, line 32.2. obligations on futures operations, line 32.3. obligations on options operations and line 32.4. obligations on swap operations.

*Line 37. Head Office Account – is applicable only for Externally Regulated PRU Investment Firms doing business in the AIFC as a branch and is a sum of liabilities, that has characteristics of equity capital (e.g. working capital), of Externally Regulated PRU Investment Firm to its Head Office Institution, and adjuster due to the financial results of an Externally Regulated PRU Investment Firm.

**Line 46. Total Shareholder's Equity – is not applicable for Externally Regulated PRU Investment Firms doing business in the AIFC as a branch and the total of the line 40. Equity share capital, line

41. Premiums (additionally paid up equity), line 42. Withdrawn equity, line 43. Reserved equity, line 44. Other reserves and line 45. Retained profit (uncovered loss).

Line 40. Equity Share Capital – is the total of the line 40.1. ordinary capital and 40.2. privileged capital

Line 43. Reserved equity – is the total of the line 43.1. reserves on revaluation of securities measured at fair value through comprehensive incomes, line 43.2. reserves on revaluation of fixed assets and line 43.3. reserves on revaluation on loans value, measured at fair value through comprehensive incomes.

Line 45. Retained profit (uncovered loss) – is the total of the line 45.1. Retained profit (uncovered loss) for previous years and 45.2. Retained profit (uncovered loss) for reporting period.

Line 47. Total Shareholder's Equity and Liabilities – is the total of the line 46. Total Shareholder's Equity and line 38. Total Liabilities.

Annex 1.1-1.

Instructions on Annex 1.1-1. template on Off-Balance Sheet Accounts Report to the Manual for Preparation of Returns for Investment Firms is aimed at collecting of off-balance sheet accounts of a PRU Investment Firm. Off-Balance Sheet Accounts consist of data on Contingent and possible claims and obligations, Memorandum accounts and Client assets held in trust and investment management.

A PRU Investment Firms are reporting on its Off-Balance Sheet Accounts for reporting quarter and quarter prior to reporting quarter, reporting line 3.4. Revenue and line 3.5. Expenditures are for reporting quarter since the beginning of the year and quarter prior reporting quarter since the beginning of the year.

Annex 1.2.

Instructions on Annex 1.2. template on Profit and Losses Report to the Manual for Preparation of Returns for Investment Firms is aimed at reporting profits and losses of a PRU Investment Firm.

The Profits and Losses Report of a PRU Investment Firm should be recorded and reported in compliance with the International Financial Reporting Standards and requirements of the AIFC for reporting quarter since the beginning of the year and quarter prior to reporting quarter since the beginning of the year.

This reporting template is applicable for both of PRU Investment Firms and Externally Regulated PRU Investment Firms. Externally Regulated PRU Investment Firms are providing information related with their activities in the Authorised Market Institutions and AIFC Operations.

Line 33. Total Net Profit (Loss) For Reporting Period – is the financial result of the reporting period resulted by the total of the line 31. Net profit (loss) after corporate income tax payments and the line 32. Profit (loss) of discontinued business.

Line 31. Net profit (loss) after corporate income tax payments – is the difference of the line 29. Net profit (loss) before corporate income tax payments and the line 30. Corporate income tax.

Line 29. Net profit (loss) before corporate income tax payments – is the difference of the line

13. TOTAL INCOMES and the line 28. TOTAL EXPENDITURES.

Line 13. Total Incomes – is the total income of the reporting investment firm consist of the line

1. Interest income, line 2. Commission incomes, line3. Incomes on trading of financial assets, line

4. Incomes on changes in value of financial assets at fair value which changes in which are recognized through Profit or Loss, line 5. incomes on foreign currency operations, line 6. income on revaluation of foreign currency, line 7. incomes on participation in equity of other business, line 8. incomes on trading of assets, line 9. incomes on operations with refined precious metals, line 10. incomes on derivatives, line 11. Incomes on recovery of reserves for securities, deposits, receivables and contingent liabilities and line 12. Other incomes.

Line 1. Interest income – interest incomes are including the following lines 1.1. incomes on correspondent and current accounts, 1.2. incomes on deposits, 1.3 incomes on securitis, 1.4. incomes on securities and 1.5. other interest incomes.

Line 2. Commission incomes – commissions incomes are including the following lines 2.1. incomes on consultancy services, 2.2. incomes from bonds holders representative services, 2.3. incomes from underwriter services, 2.4. incomes from asset management services, 2.5. incomes from brokerage services, 2.6. incomes from market- maker services, 2.7. incomes from others services, 2.8. incomes from pension assets and line 2.9. incomes from investment incomes (losses) on pension assets

Line 10. incomes on derivatives – PRU Investment Firm’s incomes on derivatives include the line

10.1. incomes on futures operations, 10.2. incomes on forward operations, 10.3. incomes on option operations and 10.4. incomes on swap operations.

Line 28. Total Expenditures – is the total expenditures of reporting Investment Firm’s includes the line 14. Interest expenses, line 15. Commission fee expenditures, line 16. Expenditures on non-income losses, line 17. Expenditures on trading of financial assets, line 18. Expenditures on changes in value of financial assets at fair value which changes in which are recognized through Profit or Loss, line 19. Expenditures on foreign currency operations, line 20. Expenditures on revaluation of foreign currencies, line 21. Expenditures on participation in equity of businesses, line 22. Expenditures on selling or donating assets, line 23. Expenditures on refined precious metals operations, line 24. Expenditures on derivative operations, line 25. Expenditures on reserves for securities, deposits, receivables and contingent liabilities, line 26. Operational expenditures and line 17. Other expenditures.

Line 14. Interest Expenses – PRU Investment Firm’s interest expenses are including the line 14.1. interest expenses on loans received, line 14.2. interest expenses on securities issued, line 14.3. interest incomes on REPO operations and 14.4. interest incomes on other interest losses.

Line 15. Commission Fee Expenditures – PRU Investment Firm’s commission fee expenditures are including the line 15.1. commission fees expenditures on managing agents, 15.2. commission fees expenditures on custody services, line 15.3. commission fees expenditures on stock exchange services, line 15.4. commission fees expenditures on registrar services, line 14.5. commission fees expenditures on brokerage services and 14.6. commission fees expenditures on other services.

Line 16. Expenditures on Non-Income Losses – PRU Investment Firm’s expenditures on no- income losses includes the line 16.1. from transfer operations, line 16.2. from clearing operations, line 16.3. from cashier operations, line 16.4. from safe deposit operations and line

16.5. from collection of money, coins and other valuables.

Line 24. Expenditures on Derivative Operations – PRU Investment Firm’s expenditures on derivative operations include the line 24.1. expenditures on futures operations, 24.2. expenditures on forward operations, 24.3. expenditures on option operations and 24.4. expenditures on swap operations.

Line 26. Operational Expenditures – PRU Investment Firm’s operational expenditures include the line 26.1. operational expenditures related to Labor and travel expenditures, line 26.2. operational expenditures related to transportation expenditures, line 26.3. operational expenditures related to administrative expenditures, line 26.4. operational expenditures related to amortization expenditures, line 26.5. operational expenditures related to Expenditures on taxes and other mandatory payments to budget, excluding corporate income tax and line 26.6. operational expenditures related to fines and penalties.

Annex 1.3.