Article 29-5. Creation of a self-regulatory organization in the field of microfinance activities of the Law on Microfinance Activities

Home / Laws / Article 29-5. Creation of a self-regulatory organization in the field of microfinance activities of the Law on Microfinance Activities

1. A self-regulating organization in the field of microfinance activities is a self-regulating organization based on the mandatory membership (participation) of microfinance organizations or credit partnerships, or pawnshops, established to monitor the activities of its members (participants) in terms of their compliance with the requirements of the rules and standards of a self-regulating organization in the field of microfinance activities, included in the register of self-regulating organizations in the field of microfinance activities.

2. A self-regulating organization in the field of microfinance activities is a non-profit organization and is established in the form of an association (union) and carries out its activities in relation to one type of microfinance activity specified in paragraph 1 of Article 3 of this Law.

3. The activities of a self-regulating organization in the field of microfinance activities are regulated by this Law, other laws of the Republic of Kazakhstan, the charter, standards and rules of a self-regulating organization in the field of microfinance activities, as well as the procedure for carrying out the activities of a self-regulating organization in the field of microfinance activities, established by a regulatory legal act of the authorized body.

The procedure for carrying out the activities of a self-regulatory organization in the field of microfinance activities establishes:

1) requirements for budgeting by a self-regulatory organization in the field of microfinance activities;

2) information about the senior staff of a self-regulatory organization in the field of microfinance activities;

3) the procedure for the transfer by a self-regulating organization in the field of microfinance activities excluded from the register of self-regulating organizations of documents and information generated in the course of its activities, as well as related to the activities of members (participants), another self-regulating organization in the field of microfinance activities or an authorized body.

4. Microfinance organizations, credit partnerships, pawnshops may not simultaneously be members (participants) of two or more self-regulating organizations in the field of microfinance activities.

5. A self-regulating organization in the field of microfinance activities must include at least twenty-one percent of the total number of microfinance organizations or credit partnerships or pawnshops as members (participants). The total number of microfinance organizations, credit partnerships, and pawnshops is determined based on information posted on the authorized body's Internet resource.

6. The name of the self-regulating organization in the field of microfinance activities, uniting on the terms of membership (participation):

microfinance organizations, should contain the words "self-regulating organization of microfinance organizations";

credit partnerships, should contain the words "self-regulating organization of credit partnerships";

pawnshops, should contain the words "self-regulating organization of pawnshops".

It is prohibited to use the words "national", "state", "republican" or "central" in full or abbreviated form in any language in the name of a self-regulating organization in the field of microfinance activities.

It is not allowed to use designations that are identical or confusingly similar to the names of microfinance organizations as the name of a self-regulating organization in the field of microfinance activities.

7. A self–regulating organization in the field of microfinance activities, within the time limits established by part three of paragraph 4 of Article 9 of the Law of the Republic of Kazakhstan "On Self-Regulation" (hereinafter referred to as the Law on Self-Regulation), submits the following information and documents to the authorized body:

1) a copy of the charter approved by the general meeting of the self-regulatory organization in the field of microfinance activities;

2) rules and standards of a self-regulating organization in the field of microfinance activities, developed in accordance with the requirements established by the Law on Self-Regulation, this Law and approved by the collegial governing body of a self-regulating organization in the field of microfinance activities;

3) confirming that a self-regulating organization in the field of microfinance activities has one or more ways to ensure property liability to consumers of financial services of its members (participants);

4) an extract from the register of members (participants) of a self-regulatory organization in the field of microfinance activities, including at least twenty-one percent of the total number of microfinance organizations or credit partnerships, or pawnshops, signed by the head of the executive management body;

5) the budget of a self-regulating organization in the field of microfinance activities, confirming the possibility of its exercising its powers in accordance with this Law.

The requirements for budgeting by a self-regulating organization in the field of microfinance activities are established by a regulatory legal act of the authorized body specified in the first part of paragraph 3 of this article.;

6) confirming the compliance of the senior staff of a self-regulatory organization in the field of microfinance activities with the requirements established by Article 9-4 of the Law of the Republic of Kazakhstan "On State Regulation, Control and Supervision of the Financial Market and Financial Organizations."

Information about the senior staff of a self-regulating organization in the field of microfinance activities is provided in accordance with the regulatory legal act of the authorized body specified in the first part of paragraph 3 of this article.

The head, his deputy and members of the collegial management body, the head of the executive management body, his deputy and members of the executive management body are recognized as senior employees of a self-regulating organization in the field 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.

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Republic of Kazakhstan

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