Article 4-1. Requirements for senior employees of the Fund of the Law on the Insurance Benefit Guarantee Fund

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1. The Fund's senior staff are:

1) the head and members of the Fund's management body;

2) the head and members of the executive body of the Foundation;

3) Chief Accountant of the Fund.

At least one of the members of the Fund's executive body must have supporting documents confirming that they have attended at least fifty percent of the courses of the minimum mandatory actuarial training program established by the regulatory legal act of the authorized body.

1-1. For the purposes of this article, a candidate for the position of a Fund's executive officer is an individual who intends to hold the position of a Fund's executive officer, or a person elected to the position of head or member of the Fund's governing body, who is an independent director.

2. A person cannot hold (cannot be appointed or elected to) the position of a senior employee of the Foundation.:

1) has no higher education;

2) who does not have at least five years of work experience, including at least three years in a managerial position:

in international financial organizations, the list of which is established by the authorized body;

and (or) in the field of regulation, control and supervision of the financial market and financial organizations;

and (or) in the field of financial services;

and (or) conducting an audit of financial institutions;

and (or) in the field of regulation of audit services for financial institutions;

and (or) in the field of software development used to automate the activities of financial organizations;

and (or) in foreign legal entities operating in the areas listed in this subparagraph;

3) does not have an impeccable business reputation.

IZPI's note! The second part of subparagraph 2) is provided for in the wording of the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective sixty calendar days after the date of its first official publication).

An impeccable business reputation is the presence of facts confirming professionalism, integrity, the absence of an outstanding or outstanding criminal record, including the absence of a court decision on the application of criminal punishment in the form of deprivation of the right to hold the position of a senior employee of a financial institution, banking and (or) insurance holding and to be a major participant (major shareholder) of a financial institution. for life;

4) who has had his consent to be appointed (elected) to the position of a senior employee revoked and (or) who has been removed from his official duties in this and (or) in another financial organization, banking, insurance holding company, branch of a non–resident bank of the Republic of Kazakhstan, branch of an insurance (reinsurance) organization – non-resident of the Republic of Kazakhstan, a branch of a non–resident insurance broker of the Republic of Kazakhstan.

This requirement is applied during the last twelve consecutive months after the decision of the authorized body to revoke consent to the appointment (election) to the position of a senior employee.;

5) who has committed a corruption offense or has been subjected to administrative punishment for committing a corruption offense within three years prior to the date of filing an application for approval for a senior position.

When appointing (electing) senior staff, the Fund independently checks them for compliance with the requirements of this article, including taking into account information posted on the authorized body's Internet resource.

The business reputation assessment for the presence or absence of an impeccable business reputation in relation to senior employees and candidates for the positions of senior employees of the Fund is carried out by the authorized body, including using reasoned judgment.

2-1. For the purposes of subparagraph 2) of paragraph 2 of this article, a managerial position is a position:

1) a senior employee, a head who coordinates and (or) controls the activities of a structural subdivision(s), a head, a deputy head of a structural subdivision, as well as a separate subdivision of a financial organization, 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, a branch of a non–resident bank of the Republic of Kazakhstan;

2) the first head and his deputy, the head, the deputy head of the structural unit of the state body in the field of regulation of financial services and (or) regulation and state control in the field of auditing of financial organizations;

3) the first head and his deputy, the head or deputy head of a structural subdivision, as well as a separate subdivision in:

international financial organizations specified in the second paragraph of subparagraph 2) of the first part of paragraph 2 of this Article;

organizations conducting audits of financial institutions;

organizations engaged in activities in the field specified in the seventh paragraph of subparagraph 2) of the first paragraph of paragraph 2 of this Article;

foreign legal entities specified in the eighth paragraph of subparagraph 2) of the first paragraph of paragraph 2 of this Article.

3. A candidate for the position of a senior employee may not perform the relevant functions without the approval of the authorized body.

The prohibition established by the first part of this paragraph does not apply to a person elected to the position of head or member of the management body, who is an independent director, who has the right to perform the relevant functions without the consent of the authorized body for no more than sixty calendar days from the date of his election.

The authorized body reviews the documents submitted for the approval of the appointment (election) of the Fund's senior staff within thirty working days from the date of submission of the full package of documents in accordance with the requirements of the regulatory legal act of the authorized body.

A fee is charged for granting consent to the appointment (election) of a senior employee, the amount and payment procedure of which are determined by the tax legislation of the Republic of Kazakhstan.

Documents for obtaining consent for the appointment (election) of a senior employee of the Fund may be provided by the Fund or by a candidate for the position of a senior employee.

The consent of the authorized body for the appointment (election) of a senior employee of the Fund may be issued for one or more positions, provided that the candidate for the position of a senior employee meets the requirements for these positions.

A candidate for the position of head or member of the management body, who is an independent director, can be approved both before and after his election to the specified position.

When approving the head or a member of the management body who is an independent director, after his election, the documents for approval must be submitted to the authorized body no later than sixty calendar days from the date of his election.

Upon expiration of the period specified in this paragraph, and in case of failure to submit the full package of documents for approval to the authorized body or refusal by the authorized body to approve, the Fund is obliged to take measures to terminate the powers of this senior employee.

The consent of the authorized body to the appointment (election) of a senior employee of the Fund is terminated in the following cases::

1) non-appointment (non-election) of an agreed candidate for the position of a senior employee in the Fund within twelve months from the date of receipt of consent or dismissal from office (termination of powers) of a senior employee;

2) withdrawal by the authorized body of consent to the appointment (election) to the position of a senior employee of the Fund.

It is prohibited to perform the duties of a senior employee, to replace a temporarily absent senior employee of the Fund by a person who does not have the consent of the authorized body to appoint (elect) a senior employee, except in cases where the duties of the head of the executive body are assigned to a member of the executive body of the Fund or the duties of the chief accountant of the Fund to the deputy Chief accountant of the Fund for a period not exceeding sixty calendar days.

It is not allowed to assign the duties (replacement of a temporarily absent) head of the executive body or chief accountant of the Fund to the persons specified in part eleven of this paragraph due to the absence of a candidate agreed with the authorized body for a total of more than one hundred and eighty calendar days within twelve consecutive months.

When the authorized body uses a reasoned judgment regarding a candidate for the position of a senior employee in accordance with Article 13-5 of the Law of the Republic of Kazakhstan "On State Regulation, Control and Supervision of the Financial Market and Financial Organizations", the authorized body sends a notification to the person who submitted the documents for approval of a candidate for the position of a senior employee on the formation of a candidate for the position of a senior employee motivated judgment.

The authorized body suspends the period of consideration of documents submitted for obtaining consent to the appointment (election) of candidates for the positions of senior employees of the Fund, when the authorized body forms a reasoned judgment regarding these candidates for senior positions. This period is suspended from the date of sending the draft reasoned judgment to the person who submitted the documents for approval of the candidate for the position of a senior employee, until the date of the decision of the authorized body using the reasoned judgment.

4. The authorized body refuses to grant consent to the appointment (election) of the Fund's senior staff on the following grounds:

1) non-compliance of candidates for senior management positions with the requirements established by this Article, subparagraph 20) of Article 1, paragraph 4 of Article 54 and paragraph 2 of Article 59 of the Law of the Republic of Kazakhstan "On Joint Stock Companies", Article 9 of the Law of the Republic of Kazakhstan "On Accounting and Financial Reporting" or a regulatory legal act of the authorized body;

2) negative test result.

The negative test results are:

The test result of a candidate for the position of a senior employee is less than seventy percent of the correct answers.;

violation by a candidate for the position of a senior employee of the testing procedure determined by the authorized body;

failure to appear for testing at the appointed time during the period of approval of the candidate for the position of a senior employee by the authorized body;

3) failure to eliminate the comments of the authorized body or submission of documents modified taking into account the comments of the authorized body after the expiration of the period established by the regulatory legal act of the authorized body.;

3-1) violation of the procedure established by the legislation of the Republic of Kazakhstan for the election (appointment) of a candidate for the position of head or member of the management body who is an independent director;

4) submission of documents after the expiration of the period specified in paragraph eight of paragraph 3 of this Article, during which a candidate for the position of head or member of the management body, who is an independent director, holds his position without the consent of the authorized body.;

5) excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective from 01.01.2019); 6) excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective from 01.01.2019);

7) the authorized body has information (facts) that the candidate was a party to a transaction recognized as having been committed for the purpose of manipulating the securities market and (or) causing damage to a third party(s).

This requirement applies for one year from the date of the earliest of the listed events.:

recognition by an authorized body of a transaction concluded on organized and (or) unorganized securities markets as committed for the purpose of manipulation;

receipt by the authorized body of facts confirming the damage caused to a third party (third parties) as a result of this transaction;

8) the authorized body has information that the candidate was an employee of a financial organization, a branch of a non-resident bank of the Republic of Kazakhstan, in respect of whom the authorized body applied supervisory response measures and (or) imposed an administrative penalty for an administrative offense provided for in Article 259 of the Code of the Republic of Kazakhstan on Administrative Offenses, for concluding a transaction recognized as committed for the purpose of manipulating the securities market, and (or) by an employee of a financial institution, a branch of a non-resident bank of the Republic of Kazakhstan, whose actions caused damage to a financial institution, a branch of a non-resident bank of the Republic of Kazakhstan and (or) a third party(s) involved in the transaction.

This requirement applies for one year from the date of the earliest of the listed events.:

recognition by an authorized body of a transaction concluded on organized and (or) unorganized securities markets as committed for the purpose of manipulation;

receipt by the authorized body of facts confirming the damage caused as a result of this transaction to a financial institution, a branch of a non-resident bank of the Republic of Kazakhstan and (or) a third party(s).

For the purposes of this subparagraph, an employee of a financial institution or a branch of a non-resident bank of the Republic of Kazakhstan is understood to be a senior employee or a person who performed his duties and/or a stock exchange trader whose competence included making decisions on issues that led to the above violations.

5. The Fund is obliged to notify the authorized body within five working days from the date of the decision of the relevant body of the Fund of all changes that have occurred in the composition of senior staff, including their appointment (election), transfer to another position, termination of the employment contract and (or) termination of powers, bringing the senior employee to administrative responsibility for committing a corruption offense., as well as about changes in the surname, first name, patronymic (if it is indicated in the document, identity document) of the supervisor with copies of supporting documents attached.

In the case of bringing a senior employee to criminal responsibility, the Foundation notifies the authorized body within five working days from the day when this information became known to the Foundation.

6. Excluded by the Law of the Republic of Kazakhstan dated 07/12/2022 No. 138-VII (effective sixty calendar days after the date of its first official publication).

7. The authorized body revokes the consent granted for the election (appointment) to the position of a senior employee of the Fund on the following grounds:

1) identification of false information on the basis of which the consent was given;

2) the application by the authorized body of the supervisory response measure specified in paragraph 2 of Article 3-1 of this Law;

2-1) non-compliance of senior employees with the requirements established by this Article, subparagraph 20) of Article 1, paragraph 4 of Article 54 and paragraph 2 of Article 59 of the Law of the Republic of Kazakhstan "On Joint Stock Companies", Article 9 of the Law of the Republic of Kazakhstan "On Accounting and Financial Reporting" or a regulatory legal act of the authorized body;

3) the presence of an outstanding or outstanding criminal record.

4) excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective from 01.01.2019).

Revocation by the authorized body of consent to the appointment (election) of a senior employee of the Fund is the basis for revocation of previously issued consent (consents) to this senior employee in other financial organizations, banking, insurance holdings, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations of non-residents of the Republic of Kazakhstan, branches of insurance brokers -non-residents of the Republic of Kazakhstan.

The Fund is obliged to terminate the employment contract with the supervisor or, in the absence of an employment contract, take measures to terminate the powers of the supervisor in the following cases::

1) withdrawal by the authorized body of consent to the appointment (election) to the position of a senior employee;

2) violations of the procedure established by the legislation of the Republic of Kazakhstan for the election (appointment) of a candidate for the position of a senior employee.

The Law of the Republic of Kazakhstan dated June 3, 2003 No. 423.

This Law defines the legal status, the procedure for the establishment and operation of the Insurance Benefit Guarantee Fund, as well as the conditions for the participation of insurance organizations, branches of insurance organizations that are non-residents of the Republic of Kazakhstan in the Insurance Benefit Guarantee Fund and the principles of ensuring control over its activities.

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Republic of Kazakhstan

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