Article 24. Advertising distributed and hosted by a microfinance organization The Law on Microfinance Activities

Home / Laws / Article 24. Advertising distributed and hosted by a microfinance organization The Law on Microfinance Activities

1. Legal entities that are not registered as microfinance organizations, credit partnerships, pawnshops are not entitled to carry out entrepreneurial activities to provide micro-loans.

2. Microfinance organizations are prohibited from:

1) inappropriate advertising;

2) advertising related to the offer of a micro-loan on terms that do not comply with the legislation of the Republic of Kazakhstan on microfinance activities;

3) advertising that does not contain information about the risks inherent in financial products, as defined by the requirements for financial product management, the list of financial products (indicating rates and tariffs), the approval, modification and termination of which the subject of behavioral supervision notifies the authorized body, the procedure for such notification, as well as a list of documents and information attached to the notification approved by the regulatory legal act of the authorized body.

2-1. When distributing and/or placing advertisements containing information on the amount of remuneration for a micro-loan, a microfinance organization must indicate the annual effective remuneration rate.

2-2. When distributing advertisements containing information about the amount of remuneration for a micro-loan, including when publishing it, the annual effective remuneration rate is indicated in digital terms, in the same size and font design style as other remuneration rates. It is not allowed to indicate the annual effective remuneration rate in a font smaller than the one used when specifying other information in this advertisement.

3. The authorized body has the right to require a microfinance organization to make changes to an advertisement that does not correspond to reality, to terminate it and (or) to publish its refutation.

In case of failure to comply with this requirement within the time period established by the authorized body, the authorized body has the right to publish information about the inconsistency of the information contained in the advertisement, or to clarify them at the expense of the microfinance organization that published such advertising.

4. Legal entities that do not have a license to carry out microfinance activities are prohibited from advertising services that fall under the category of microfinance activities.

The Law of the Republic of Kazakhstan dated November 26, 2012 No. 56-V.

This Law regulates public relations related to the provision of micro-loans, establishes the specifics of the creation and reorganization of organizations engaged in microfinance activities, the legal status, activities of organizations engaged in microfinance activities, and also defines the specifics of state regulation of organizations engaged in microfinance activities, control and supervision of their activities.

President

Republic of Kazakhstan

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