Article 26-1. Grounds for refusal by the authorized body to grant consent to persons wishing to become an insurance holding company or a major participant in an insurance (reinsurance) organization of the Insurance Law
The footnote. Title as amended by the Law of the Republic of Kazakhstan dated December 28, 2011 No. 524-IV (effective after ten calendar days after its first official publication).
1. The grounds for refusal to grant consent by the authorized body to persons wishing to become an insurance holding company or a major participant in an insurance (reinsurance) organization are:
1) non-compliance of the submitted documents with the requirements specified in Article 26 of this Law, or failure to eliminate the comments of the authorized body on the submitted documents within the time limit set by it;
2) non–compliance with the requirements of subitems 3), 4) and 5) of the first part of paragraph 3 of Article 34 of this Law (in respect of an individual or senior employees of the applicant - a legal entity);
3) the applicant's precarious financial situation;
3-1) inefficiency of the presented recapitalization plan of the insurance (reinsurance) organization in case of possible deterioration of the financial condition of the insurance (reinsurance) organization;
3-2) the applicant, an individual, or a senior employee of the applicant, a legal entity, does not have an impeccable business reputation;
3-3) the beneficial owner of the applicant, a legal entity determined in accordance with the Law of the Republic of Kazakhstan "On Countering the Legalization (Laundering) of Proceeds from Crime, the Financing of terrorism and the financing of the proliferation of weapons of Mass Destruction," has an outstanding or outstanding criminal record for crimes related to the legalization (laundering) of proceeds from crime, the financing of terrorism and financing the proliferation of weapons of mass destruction;
4) violation of the requirements of the legislation of the Republic of Kazakhstan in the field of competition protection as a result of the applicant's acquisition of the status of a major participant in an insurance (reinsurance) organization or insurance holding company;
5) cases when, in a transaction to acquire the status of a major participant in an insurance (reinsurance) organization or insurance holding company, the acquiring party is a legal entity (its major participant (major shareholder) registered in offshore zones, the list of which is established by the authorized body;
6) cases when the applicant is a financial institution that is not subject to supervision on a consolidated basis in the country of its location;
6-1) the impossibility of conducting consolidated supervision of the insurance group due to the fact that the legislation of the countries where the participants of the insurance group are located – non-residents of the Republic of Kazakhstan - makes it impossible for them and the insurance group to comply with the requirements provided for by this Law;
7) failure by the applicant to comply with other requirements established by the legislative acts of the Republic of Kazakhstan to major participants in an insurance (reinsurance) organization and insurance holdings;
8) analysis of the financial consequences of the applicant's acquisition of the status of a major participant in an insurance (reinsurance) organization or insurance holding company, suggesting a deterioration in the financial condition of the insurance (reinsurance) organization;
9) the applicant, a non-resident financial institution of the Republic of Kazakhstan, does not have the authority to carry out financial activities within the framework of the legislation of the country of origin;
10) the applicant, a non-resident legal entity of the Republic of Kazakhstan, does not have the minimum required rating from one of the international rating agencies, the list of which is determined by the authorized body, except for the cases provided for in paragraph 1 of Article 26 of this Law;
11) cases when a person was previously or is a major participant - an individual or the first head of a major participant- a legal entity and (or) a senior employee of a financial institution, a branch of a non–resident bank of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization – a non-resident of the Republic of Kazakhstan, a branch of an insurance broker – a non-resident of the Republic of Kazakhstan during the period of more than one year prior to the adoption by the authorized body of the decision on the assignment of the bank, a branch of the bank – a non–resident of the Republic of Kazakhstan belongs to the category of insolvent banks, branches of non–resident banks of the Republic of Kazakhstan, forced repurchase of bank shares, revocation of the license of a financial institution, a branch of a non–resident bank of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of an insurance broker – a non–resident of the Republic of Kazakhstan, as well as the forced liquidation of a financial institution, declaring it bankrupt in accordance with the procedure established by the legislation of the Republic of Kazakhstan, or the forced termination of the activities of a branch of a non-resident bank of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization that is a non-resident of the Republic of Kazakhstan. This requirement is applied within five years after the authorized body makes a decision to classify a bank, a branch of a non–resident bank of the Republic of Kazakhstan as an insolvent bank, branches of non–resident banks of the Republic of Kazakhstan, compulsory repurchase of bank shares, revocation of the license of a financial organization, a branch of a non–resident bank of the Republic of Kazakhstan, a branch of an insurance (reinsurance) non–resident organization of the Republic of Kazakhstan. Kazakhstan, insurance broker branch – a non–resident of the Republic of Kazakhstan, as well as the forced liquidation of a financial institution, declaring it bankrupt in accordance with the procedure established by the legislation of the Republic of Kazakhstan, or the forced termination of the activities of a branch of a non–resident bank of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization of the Republic of Kazakhstan in cases established by the laws of the Republic of Kazakhstan;
12) non–compliance of the legislation in the field of consolidated supervision of financial organizations of the country of location of the applicant, a legal entity, with the requirements for consolidated supervision established by the legislation of the Republic of Kazakhstan;
13) for large participants–legal entities and insurance holdings that are non-resident financial organizations of the Republic of Kazakhstan – there is no agreement between the authorized body and the financial supervisory authorities of the state of which the applicant is a resident, providing for the exchange of information, except in cases established by a regulatory legal act of the authorized body.
2. A sign of the applicant's precarious financial situation is the presence of one of the following conditions:
1) the applicant legal entity was established less than two years before the date of application submission;
2) the applicant's obligations exceed his assets minus the amount of assets placed in shares and shares in the authorized capital of other legal entities and the shares of an insurance (reinsurance) organization expected to be acquired.;
3) losses based on the results of each of the two completed financial years;
4) the amount of the applicant's obligations poses a significant risk to the financial condition of the insurance (reinsurance) organization;
5) the presence of overdue and (or) attributed to the balance of the insurance (reinsurance) organization of the applicant's debt to the insurance (reinsurance) organization;
6) the analysis of the financial consequences of the applicant's acquisition of the status of a major participant implies a deterioration in the applicant's financial condition;
6-1) the value of the applicant's property (minus the applicant's obligations) is insufficient to purchase shares in an insurance (reinsurance) organization;
7) other grounds indicating the existence of an unstable financial situation of the applicant and (or) the possibility of causing damage to the insurance (reinsurance) organization and (or) its clients.
3. Excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective from 01.01.2019). The footnote. The chapter is supplemented by Article 26-1 in accordance with the Law of the Republic of Kazakhstan dated December 23, 2005 N 107 (for the procedure of entry into force, see art. 2 of the Law N 107); as amended by the Laws of the Republic of Kazakhstan dated July 19, 2007 N 230 (for the procedure of entry into force, see art. 2); from 05/07/2007 N 244; from 10/23/2008 N 72-IV (for the procedure of introduction 2); dated 07/15/2010 No. 338-IV (for the procedure of entry into force, see art. 2); dated 28.12.2011 No. 524-IV (effective after ten calendar days after its first official publication); dated 29.10.2015 No. 376-V (effective from 01.01.2016); dated 24.11.2015 No. 422-V (effective from 01.01.2016); dated 02.07.2018 No. 166-VI (effective upon the expiration of ten calendar days after the date of its first official publication); dated 07/02/2018 No. 168-VI (for the procedure of entry into force, see art. 2); dated 07/12/2022 No. 138-VII (effective sixty calendar days after the date of its first official publication).
The Law of the Republic of Kazakhstan dated December 18, 2000 No. 126.
President
Republic of Kazakhstan
© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan
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