Article 15-23. Financial Product Management of the Law on State Regulation, Control and Supervision of the Financial Market and Financial Organizations

Home / Laws / Article 15-23. Financial Product Management of the Law on State Regulation, Control and Supervision of the Financial Market and Financial Organizations

1. The subject of behavioral supervision carries out a continuous process of managing a financial product at the stages of development, promotion (advertising), provision, monitoring and termination of the provision of a financial product.

When developing a financial product, the subject of behavioral supervision:

1) defines the characteristics and conditions for the provision of a financial product;

2) defines the category of potential consumers of financial services, whose goals (needs) the financial product will meet;

3) assesses the risks for consumers of financial services associated with their purchase (receipt) of a financial product and its use;

4) implements other measures aimed at reducing the risks of a financial product for consumers of financial services.

When promoting (advertising) a financial product, the subject of behavioral supervision complies with the requirements provided for in Article 67 of the Law of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan", Article 52-2 of the Law of the Republic of Kazakhstan "On Insurance Activities", Article 53-1 of the Law of the Republic of Kazakhstan "On the Securities Market", Article 24 of the Law of the Republic of Kazakhstan "On microfinance activities", as well as the requirements of the legislation of the Republic of Kazakhstan on advertising.

When providing a financial product, the subject of behavioral supervision offers financial products to the consumer of financial services based on the criteria of suitability of the financial product.

When monitoring a financial product, the subject of behavioral supervision is required to identify the risks of the financial product for consumers of financial services, including on the basis of an analysis of information about the use of the financial product by consumers of financial services and requests from consumers of financial services in relation to the financial product.

The subject of behavioral supervision in the framework of financial product management should identify potential grounds for termination of the provision of a financial product, as well as actions to inform consumers of financial services and fulfill obligations to consumers of financial services upon termination of the provision of a financial product.

The subject of behavioral supervision notifies the authorized body of the approval, modification and termination of the provision of a financial product within ten working days from the date of the relevant decision by the subject of behavioral supervision.

The requirements for the management of financial products, the list of financial products (indicating rates and tariffs), on the approval, modification and termination of which the subject of behavioral supervision notifies the authorized body, the procedure for such notification, as well as the list of documents and information attached to the notification, are established by a regulatory legal act of the authorized body.

2. When identifying a financial product that poses risks to consumers of financial services and/or does not meet the requirements for financial product management established by the regulatory legal act of the authorized body, the authorized body requires the subject of behavioral supervision to suspend their provision to consumers of financial services until the identified risks are eliminated and such financial product is brought into compliance with these requirements.

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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