Article 1. The basic concepts used in this Law are the Law on State Regulation, Control and Supervision of the Financial Market and Financial Organizations

Home / Laws / Article 1. The basic concepts used in this Law are the Law on State Regulation, Control and Supervision of the Financial Market and Financial Organizations

The following basic concepts are used in this Law:

1) unfair practices – actions (inaction) of subjects of behavioral supervision, the types and signs of which are established by paragraph 2 of Articles 15-25 of this Law;

2) financial services – activities of professional participants in the insurance market (except actuaries), professional participants in the securities market, voluntary accumulative pension fund, banking, activities of organizations engaged in certain types of banking operations, organizations engaged in microfinance activities carried out on the basis of licenses obtained in accordance with the legislation of the Republic of Kazakhstan, as well as non-licensed activities:

unified accumulative pension fund;

the Central Depository;

a single operator in the field of accounting for state property in terms of exercising the functions of nominal holding of securities owned by the state, quasi-public sector entities, the list of which is approved by the authorized body for state property management, or in respect of which the state, the specified quasi-public sector entities have property rights.;

mutual insurance companies;

an organization that guarantees insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations;

3) consumer of financial services – an individual or legal entity intending to purchase services or using the services of a financial institution, a branch of a non–resident bank of the Republic of Kazakhstan, a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non–resident insurance broker of the Republic of Kazakhstan, as well as investing its funds in financial instruments;

4) financial market – a set of relations related to the provision and consumption of financial services, as well as the issuance and circulation of financial instruments;

5) the authorized body for regulation, control and supervision of the financial market and financial organizations (hereinafter referred to as the authorized body) – the state body responsible for state regulation, control and supervision of the financial market and financial organizations;

6) responsible business practices in the financial market – a set of principles and actions aimed at ensuring an honest, transparent and fair attitude of subjects of behavioral supervision to consumers of financial services;

7) professional activity in the financial market – entrepreneurial activity in the provision of financial services;

8) financial product is a service offered by a financial organization, a branch of a non–resident bank of the Republic of Kazakhstan and a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan to consumers of financial services in the framework of their professional activities in the financial market;

9) financial organization – a legal entity engaged in business activities for the provision of financial services;

10) impeccable business reputation – professionalism and integrity of a person, confirmed, among other things, by the absence of facts:

the commission by the specified person of illegal actions (inaction) that led to insolvency, which led to the compulsory liquidation of a financial institution, or to the application of a settlement regime to the bank;

the person's outstanding or outstanding criminal record, including the absence of a judicial act that has entered into legal force on the application of criminal punishment to a person in the form of deprivation of the right to hold the position of a senior employee of a financial institution, a banking and (or) insurance holding company and to be a major participant (major shareholder) of a financial institution for life;

the existence of relations with third parties (control and influence of third parties), whose actions contributed to the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction, based on information from the authorized financial monitoring body;

11) inspection materials – materials generated by the control and supervision body during and based on the results of the inspection;

12) authorized agent – a person who carries out commercial representation of a behavioral supervision entity, including an insurance agent;

13) behavioral supervision – the activity of an authorized body aimed at preventing, detecting and suppressing violations of the rights and legitimate interests of consumers of financial services by actions (inaction) of subjects of behavioral supervision and (or) their authorized agents, provided for in Chapter 2-4 of this Law and other laws of the Republic of Kazakhstan;

14) the subject of behavioral supervision is a bank, a branch of a non–resident bank of the Republic of Kazakhstan, an organization engaged in certain types of banking operations, a microfinance organization, a collection agency to which rights (claims) have been assigned under a bank loan agreement, a microcredit agreement concluded with an individual, an insurance (reinsurance) organization, a branch of an insurance (reinsurance) a non–resident organization of the Republic of Kazakhstan, as well as an organization engaged in brokerage activities on the securities market.

The Law of the Republic of Kazakhstan dated July 4, 2003 No. 474-II.

This Law regulates public relations related to the implementation of state regulation, control and supervision of the financial market and financial organizations, and is aimed at increasing the stability of the financial system of the Republic of Kazakhstan and creating conditions to prevent violations of the rights and legitimate interests of consumers of financial services.

President

Republic of Kazakhstan

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