Introduction

1. The Astana Financial Services Authority (AFSA) has issued this Consultation Paper to invite public comments on the proposed additional amendments to the AIFC Acts with the aim at establishing a comprehensive regulatory framework for insurance and reinsurance services in the AIFC.

2. The proposals in this Consultation Paper will be of interest to individuals, financial services companies, market institutions and investors who are interested in doing business in the AIFC.

3. All comments should be in writing and sent to the address or email specified below. If sending your comments by email, please use “Consultation Paper No 15” in the subject line. You may, if relevant, identify the organisation you represent when providing your comments. The AFSA reserves the right to publish, including on its website, any comments you provide, unless you expressly request otherwise. Comments supported by reasoning and evidence will be given more weight by the AFSA.

4. The deadline for providing comments on the proposals is 15 December 2018. Once we receive your comments, we shall consider if any refinements are required to this proposal.

5. Comments to be addressed by post: Policy and Strategy Division

Astana Financial Services Authority (AFSA)

8 Kunayev Street, Building B, Astana, Kazakhstan or emailed to: consultation@afsa.kz

Tel: +8 7172 613781

6. The remainder of this Consultation Paper contains the following:

(a) Background to the proposals;

(b) Annex 1: Proposed Amendments to AIFC Prudential Rules for Insurance Intermediaries and Insurance Managers;

(c) Annex 2: Proposed Amendments to AIFC Glossary.

Background

7. In 2015 Astana was designated by the President of Kazakhstan as the location of the Astana International Financial Centre (“AIFC”). He stated the need to establish the AIFC on the base of the Expo-2017 infrastructure and to confer a special status on the AIFC. The AIFC participants, bodies and organisations will enjoy a special tax regime, special migration regime, special currency exchange regulation regime.

8. According to Article 2 of the Constitutional Statute of the Republic of Kazakhstan “On the Astana International Financial Centre” (the “Constitutional Statute”), the purpose of the AIFC is to establish a leading international centre for financial services. The objectives of the AIFC are as follows:

(a) attracting investment into the economy of the Republic of Kazakhstan by creating an attractive environment for investment in the financial services sphere;

(b) developing a securities market in the Republic of Kazakhstan and integrating it with international capital markets;

(c) developing insurance markets, banking services, and Islamic financing, in the Republic of Kazakhstan;

(d) developing financial and professional services based on international best practice;

(e) achieving international recognition as a financial centre.

9. Amendments to AIFC Prudential Rules for Insurance Intermediaries have been drafted with regard to similar legislation in leading international financial centres. The purpose of introducing new regulatory regime is to complement the regulatory framework established by the AIFC Financial Services Framework Regulations (“FSFR”) by providing for the prudential regulation of insurance managers.

10. Amendments to AIFC Glossary have been drafted to set out interpretative provisions of words and expressions used in the AIFC Acts regulating insurance and reinsurance services.

11. We are consulting if there are any concerns relating to the proposed regulatory requirements and provisions within establishing a legislative framework for insurance and reinsurance services in the AIFC. If so, what are they, and how should they be addressed?