Article 51. Suspension of the license. Revocation and termination of a license The Law on the Securities Market

Home / RLA / Article 51. Suspension of the license. Revocation and termination of a license The Law on the Securities Market

1. The authorized body has the right to suspend the license for up to six months in the following cases::

1) identification of false information contained in the documents submitted for obtaining a license or reviewing a report on the licensee's activities;

2) failure to provide information about changes in the documents submitted for obtaining a license;

3) non-compliance with the qualification requirements established by this Law;

4) failure to comply with the supervisory response measures applied by the authorized body;

5) non-compliance with the requirements of Article 54 of this Law in the course of the licensee's activities;

5-1) excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective from 01.01.2019); 5-2) excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective from 01.01.2019);

6) availability of a written application for voluntary suspension of the license;

7) the licensee's failure to carry out the activities for which the license was issued for six months or more;

8) failure to comply with the requirements established by the legislation of the Republic of Kazakhstan on providing information to state bodies on activities on the securities market;

9) carrying out activities prohibited and restricted for licensees in accordance with Article 53 of this Law;

10) non-compliance of the risk management and internal control system with the requirements of the authorized body;

11) violations of the requirements stipulated by the Law of the Republic of Kazakhstan "On Countering the Legalization (Laundering) of Proceeds from Crime and the Financing of terrorism";

12) non-fulfillment by a major participant of the investment portfolio manager of the compulsory measures established by Article 72-3 of this Law;

13) failure by the licensee to eliminate violations specified in the audit report within the time limits specified in paragraph 6 of Article 55-1 of this Law;

14) suspension of the license to conduct all or some substantially similar types of activities of a non-resident bank of the Republic of Kazakhstan by the financial supervisory authority of the state of which the non-resident bank of the Republic of Kazakhstan is a resident (in respect of a license issued to a branch of a non-resident bank of the Republic of Kazakhstan).

1-1. In case of suspension or loss of membership of the stock exchange due to improper execution or non-fulfillment by a member of the stock exchange of the rules of the stock exchange, the authorized body may decide to suspend the license of a member of the stock exchange to carry out brokerage and (or) dealer activities on the securities market for up to six months or revoke the license.

2. The implementation of the licensed type of activity in the securities market after receiving a written notification from the authorized body on the suspension of the license is illegal and entails liability established by the laws of the Republic of Kazakhstan.

3. (deleted - No. 72 dated 8.07.2005)

4. The authorized body has the right to revoke the license in the following cases::

1) failure to eliminate the reasons for the suspension of the license;

2) carrying out professional activities in the securities market with systematic (three or more times within twelve consecutive calendar months) violation of the norms of the legislation of the Republic of Kazakhstan on the securities market, on joint-stock companies, on investment funds;

3) systematic (three or more times during the last twelve calendar months) failure to comply with the supervisory response measures applied by the authorized body;

3-1) repeated violations of the requirements provided for by the Law of the Republic of Kazakhstan "On Countering the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism" during the last twelve consecutive months, for which a sanction was imposed in the form of license suspension on the grounds provided for in subparagraph 11) of paragraph 1 of Article 51 of this Law.;

3-2) licensees' participation in transactions related to money laundering, terrorist financing or financing the proliferation of weapons of mass destruction;

3-3) failure by the licensee to carry out professional activities in the securities market in accordance with the license granted to him within twelve consecutive calendar months;

3-4) failure by the licensee to eliminate violations specified in the audit report within the time limits specified in paragraph 6 of Article 55-1 of this Law;

4) on other grounds established by the laws of the Republic of Kazakhstan.

4-1. When determining the expediency of applying sanctions and choosing a sanction in the form of suspension or revocation of a license to operate on the securities market, the following factors are taken into account::

1) the level of risk, the nature of violations and (or) deficiencies and their consequences;

2) the scale and significance of the violations and (or) deficiencies and their consequences;

3) the systematic nature and duration of violations and (or) deficiencies;

4) the impact of violations and (or) deficiencies on the financial condition;

5) the reasons that led to the occurrence of the identified violations and (or) deficiencies;

6) the adoption by a professional participant of the securities market of independent measures aimed at eliminating deficiencies, risks or violations identified in the activities.

5. The license is terminated on the grounds established by the legislation of the Republic of Kazakhstan on permits and notifications.

6. The procedure for the licensee's fulfillment of obligations to clients after receiving a notification from the authorized body on the suspension or revocation of the license is established by regulatory legal acts of the authorized body.

The obligations of a licensee engaged in brokerage and (or) dealer activities and being a clearing participant who has received notification from the authorized body about the suspension or revocation of the license are fulfilled by the clearing organization (central counterparty), including through the full use by the clearing organization (central counterparty) of financial instruments that are full or partial collateral for obligations under transactions., for which clearing activities are carried out, by margin contributions, contributions to the guarantee funds of the clearing organization (central counterparty), in accordance with the procedure established by the regulatory legal act of the authorized body and the internal documents of this clearing organization (central counterparty).

The Law of the Republic of Kazakhstan dated July 2, 2003 No. 461.

 This Law regulates public relations arising in the process of issuing, placing, circulating and redeeming equity securities and other financial instruments, the specifics of the creation and operation of securities market entities, defines the procedure for regulating, controlling and supervising the securities market in order to ensure the safe, open and effective functioning of the securities market, and the protection of investors' rights. and holders of securities, fair competition of securities market participants.

President

Republic of Kazakhstan

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