Article 63. Requirements for senior employees of the unified accumulative pension fund, voluntary accumulative pension funds of the Social Code of the Republic of Kazakhstan

Home / Codes / Article 63. Requirements for senior employees of the unified accumulative pension fund, voluntary accumulative pension funds of the Social Code of the Republic of Kazakhstan

1. The Unified Accumulative Pension Fund and voluntary accumulative pension funds must establish an internal audit service and form the following collegial bodies:

1) the Board of Directors is the governing body;

2) the Management Board is the executive body.

The head and members of the management body, the head and members of the executive body, the chief accountant, with the exception of the first head and chief accountant of a separate subdivision of the unified accumulative pension fund or voluntary accumulative pension funds, other heads of the unified accumulative pension fund, voluntary accumulative pension funds, are recognized as senior executives of the unified accumulative pension fund or voluntary accumulative pension funds., those who coordinate and (or) control the activities of one or more structural divisions of the unified accumulative pension fund, voluntary accumulative pension funds and have the right to sign documents submitted to the authorized body provided for by regulatory legal acts of the authorized body for regulation, control and supervision of the financial market and financial organizations.

2. For the purposes of this article, a candidate for the position of a senior employee is an individual who intends to hold the position of a senior employee of a unified accumulative pension fund or a voluntary accumulative pension fund, or a person elected to the position of head or member of a management body who is an independent director.

3. A person may not hold (may not be appointed or elected to) the position of a senior employee of a single accumulative pension fund or a voluntary accumulative pension fund.:

1) has no higher education;

2) who does not have the length of service established by this article:

in international financial organizations, the list of which is established by the authorized body for regulation, control and supervision of the financial market and financial organizations;

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 government agencies responsible for regulation and control in the field of economics and finance;

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;

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 for regulation, control and supervision of the financial market and financial organizations to revoke consent to the appointment (election) to the position of a senior employee.;

4-1) in respect of whom a court verdict has entered into force for the commission of a corruption crime or who has been released from criminal liability for the commission of a corruption crime on the basis of paragraphs 3), 4), 9), 10) and 12) the first part of Article 35 or Article 36 of the Criminal Procedure Code of the Republic of Kazakhstan;

5) subjected to an administrative penalty for committing a corruption offense within three years prior to the date of filing an application for approval for a senior position.

The Unified Accumulative Pension Fund or the voluntary accumulative pension fund, when appointing (electing) senior executives, independently checks them for compliance with the requirements of this article, including taking into account information posted on the Internet resource of the authorized body for regulation, control and supervision of the financial market and financial organizations.

The assessment of business reputation for the presence or absence of an impeccable business reputation in relation to executives and candidates for senior management positions is carried out by the authorized body for regulation, control and supervision of the financial market and financial organizations, including using reasoned judgment.

4. To comply with the requirement provided for in subparagraph 2) in the first part of paragraph 3 of this article, it is necessary to have a work record for candidates for positions:

1) the head of the executive body of the unified accumulative pension fund or a voluntary accumulative pension fund for at least five years, including at least three years in a senior position;

2) the head of the management body of the unified accumulative pension fund or a voluntary accumulative pension fund for at least five years, including at least two years in a senior position;

3) a member of the executive body of the unified accumulative pension fund or a voluntary accumulative pension fund for at least three years, including at least two years in a senior position;

4) a member of the management body of the unified accumulative pension fund or a voluntary accumulative pension fund for at least two years, including at least one year in a senior position;

5) chief accountant of the unified accumulative pension fund or voluntary accumulative pension fund for at least three years;

6) other managers of a single accumulative pension fund or a voluntary accumulative pension fund for at least one year.

For candidates for the positions of members of the executive body of the unified accumulative pension fund or the voluntary accumulative pension fund responsible exclusively for security issues, administrative and economic issues, information technology issues, and the length of service provided for in subparagraph 2) the first part of paragraph 3 of this article is not required.

The length of service defined in this paragraph does not include work in the departments of a financial institution related to ensuring its security, carrying out administrative and economic activities, developing information technology (with the exception of the head of the information technology and (or) information security development department), working in a mutual insurance company and an organization engaged in microfinance activities.

For a member of the Government of the Republic of Kazakhstan, deputy head of the central executive body of the Republic of Kazakhstan, who is a candidate for the position of head of the management body of the unified accumulative pension fund or a voluntary accumulative pension fund, more than fifty percent of the outstanding shares of which are directly or indirectly owned by the state and (or) the national management holding, the length of service provided for in this article is not required.

5. For the purposes of the sub-paragraphs 1), 2), 3), 4) In the first part of paragraph 4 of this article, a managerial position means the positions of the head and members of the governing body, the head and members of the executive body, the head, deputy head of an independent structural subdivision, as well as a separate subdivision of organizations operating in the areas specified in subparagraph 2.) of the first part of paragraph 3 of this Article.

6. Documents for obtaining consent to the appointment (election) of a senior employee of a single accumulative pension fund or a voluntary accumulative pension fund may be submitted by a candidate for the position of a senior employee or by a single accumulative pension fund or a voluntary accumulative pension fund.

The consent of the authorized body for regulation, control and supervision of the financial market and financial organizations to appoint (elect) a senior employee of a single accumulative pension fund or a voluntary accumulative pension 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.

The consent of the authorized body for regulation, control and supervision of the financial market and financial organizations to appoint (elect) a senior employee of a single accumulative pension fund or a voluntary accumulative pension fund entitles him to hold the position of a senior employee without re-approval and terminates in the following cases:

1) non-appointment (non-election) of an agreed candidate for the position of a senior employee in a single accumulative pension fund or a voluntary accumulative pension 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 for regulation, control and supervision of the financial market and financial organizations of consent to the appointment (election) to the position of the head of the unified accumulative pension fund or voluntary accumulative pension fund.

7. A candidate for the position of a senior employee may not perform the relevant functions without the approval of the authorized body for regulation, control and supervision of the financial market and financial organizations.

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 a management body, who is an independent director, who has the right to perform relevant functions without approval from the authorized body for regulation, control and supervision of the financial market and financial organizations for no more than sixty calendar days from the date of his election.

The authorized body for regulation, control and Supervision of the financial market and financial organizations reviews the documents submitted for approval of the appointment (election) of senior management of the unified accumulative pension fund or voluntary accumulative pension fund 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 regulatory body, control and supervision of the financial market and financial organizations.

It is prohibited for a person who does not have the consent of the authorized body for regulation, control and supervision of the financial market and financial organizations to be appointed (elected) to the position of a senior employee to perform duties (replace a temporarily absent) senior employee of the unified accumulative pension fund or a voluntary accumulative pension fund., with the exception of cases when the duties of the head of the management body are assigned to a member of the management body or the head of the executive body to a member of the executive body for a period not exceeding sixty calendar days.

8. A candidate for the position of head or member of the management body of a single accumulative pension fund or a voluntary accumulative pension fund who is an independent director may be approved both before and after his election to the specified position.

When approving the head or a member of the management body of a single accumulative pension fund or a voluntary accumulative pension fund who is an independent director, after his election, the documents for approval must be submitted to the authorized body for regulation, control and supervision of the financial market and financial organizations within the time period established by the second part of paragraph 7 of this article.

Upon expiration of the period specified in this paragraph, and in case of failure to submit a complete package of documents for approval to the authorized body for regulation, control and supervision of the financial market and financial organizations, or refusal by the authorized body for regulation, control and supervision of the financial market and financial organizations to approve the unified accumulative pension fund or voluntary accumulative pension fund is obliged to measures to terminate the powers of this senior employee.

9. When the authorized body for regulation, control and supervision of the financial market and financial organizations uses a reasoned judgment regarding a candidate for a senior position 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 for regulation, Control and Supervision of the financial market and Financial organizations sends the person who submitted the documents for approval of the candidate for the position of a senior employee, notification of the formation of a motivated judgment regarding a candidate for the position of a senior employee.

The authorized body for regulation, control and Supervision of the financial market and financial organizations suspends the deadline for consideration of documents submitted to obtain consent for the appointment (election) of candidates for senior positions of the unified accumulative pension fund or voluntary accumulative pension fund, when the authorized body for regulation, control and supervision of the financial market and financial organizations forms a reasoned judgment in regarding these candidates for senior management positions. This period is suspended from the date of sending the draft reasoned judgment to the person who submitted the documents for approval of a candidate for the position of a senior employee of the unified accumulative pension fund or voluntary accumulative pension fund, until the date of the decision of the authorized body for regulation, control and supervision of the financial market and financial organizations using a reasoned judgment.

10. The procedure for issuing consent of the authorized body for regulation, control and supervision of the financial market and financial organizations for the appointment (election) of a senior employee of a single accumulative pension fund or a voluntary accumulative pension fund, including criteria for the absence of an impeccable business reputation, and documents necessary to obtain consent, are established by regulatory legal acts of the authorized body for regulation, control and supervision of the financial the market and financial organizations.

11. The authorized body for regulation, control and Supervision of the financial market and financial organizations refuses to grant consent to the appointment (election) of senior officials of a single accumulative pension fund or a voluntary accumulative pension fund on the following grounds:

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

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 for regulation, control and supervision of the financial market and financial organizations;

failure to appear for testing at the appointed time during the approval period of the candidate for the position of a senior employee by the authorized body for regulation, control and supervision of the financial market and financial organizations;

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.;

failure to appear for testing at the appointed time during the approval period for the candidate for the position of a senior employee by the authorized body for regulation, control and supervision of the financial market and financial organizations;

3) failure to eliminate the comments of the authorized body for regulation, control and supervision of the financial market and financial organizations or submission of documents modified taking into account the comments of the authorized body for regulation, control and supervision of the financial market and financial organizations after the expiration of the period established by the regulatory legal act of the authorized body for regulation, control and supervision of the financial market and financial organizations;

4) 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;

5) submission of documents after the expiration of the period established by the second part of paragraph 8 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 approval from the authorized body for regulation, control and supervision of the financial market and financial organizations;

6) the authorized body for regulation, control and supervision of the financial market and financial organizations has information (facts) about the actions of a candidate for the position of a senior employee recognized as 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 the authorized body for regulation, control and supervision of the financial market and financial organizations of the actions of a candidate for the position of a senior employee as committed for the purpose of manipulation in the securities market;

receipt by the authorized body for regulation, control and supervision of the financial market and financial organizations of facts confirming damage caused to a third party (third parties) as a result of such actions;

7) the authorized body for regulation, control and supervision of the financial market and financial organizations has information that the candidate for the position of a senior employee was an employee of a financial organization in respect of which the authorized body for regulation, control and supervision of the financial market and financial organizations applied supervisory response measures and (or) imposed administrative penalty for an administrative offense provided for in article 259 of the Code of the Republic of Kazakhstan on Administrative Offenses, for committing actions recognized as committed for the purpose of manipulating the securities market, and (or) by an employee of a financial institution whose actions caused damage to the financial institution and (or) to 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 the authorized body for regulation, control and supervision of the financial market and financial organizations of the actions of a financial organization as committed for the purpose of manipulation in the securities market;

receipt by the authorized body for regulation, control and supervision of the financial market and financial organizations of facts confirming damage caused by the actions of a candidate for the position of a senior employee to a financial organization and (or) a third party(s).

For the purposes of this subparagraph, an employee of a financial institution 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.

The information specified in subitems 6) and 7) of part one of this paragraph includes information received by the authorized body for regulation, control and supervision of the financial market and financial organizations from the financial supervisory authority of the state of which the non–resident financial organization of the Republic of Kazakhstan is a resident.

12. The unified accumulative pension fund or voluntary accumulative pension fund is obliged to notify the authorized body for regulation, control and supervision of the financial market and financial organizations within five working days from the date of the decision of the relevant body of the unified accumulative pension fund or voluntary accumulative pension 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, on bringing a senior employee to administrative responsibility for committing a corruption offense, as well as on changes in the surname, first name, patronymic (if it is indicated in the identity document) of the senior employee, accompanied by copies of supporting documents.

If a senior employee is held criminally liable, the unified accumulative pension fund or the voluntary accumulative pension fund notifies the authorized body for regulation, control and supervision of the financial market and financial organizations within five working days from the day when this information became known to the unified accumulative pension fund or the voluntary accumulative pension fund.

13. The authorized body for regulation, control and supervision of the financial market and financial organizations revokes the consent granted for appointment (election) to the position of a senior employee of a single accumulative pension fund or a voluntary accumulative pension fund on the following grounds:

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

2) systematic (three or more times within twelve consecutive calendar months) violation by the unified accumulative pension fund, voluntary accumulative pension fund of the requirements stipulated by the legislation of the Republic of Kazakhstan on countering the legalization (laundering) of proceeds from crime, financing of terrorism and financing the proliferation of weapons of mass destruction;

3) the removal by the authorized body for regulation, control and supervision of the financial market and financial organizations from the performance of official duties of the persons specified in this article on the basis of sufficient data to recognize the actions (inaction) of the specified senior employee (employees) of the unified accumulative pension fund or voluntary accumulative pension fund as not complying with the requirements of the legislation of the Republic of Kazakhstan;

4) the removal by the authorized body for regulation, control and supervision of the financial market and financial organizations from the performance of official duties of the persons specified in this article on the basis of sufficient data to recognize the actions of the specified senior employee (employees) of the unified accumulative pension fund or voluntary accumulative pension fund as inconsistent with the requirements of the legislation of the Republic of Kazakhstan in the event of their removal by the unified accumulative pension fund, voluntary accumulative pension fund from performing official duties or dismissal before removal from official duties of these persons by the authorized body for regulation, control and supervision of the financial market and financial organizations;

5) the presence of an outstanding or outstanding criminal record;

6) non-compliance of senior employees with the requirements established by this article, subparagraph 20) of Article 1, paragraph 4 of Article 54, paragraph 2 of Article 59 of the Law of the Republic of Kazakhstan "On Joint Stock Companies" and Article 9 of the Law of the Republic of Kazakhstan "On Accounting and Financial Reporting" or a regulatory legal act of the authorized body for regulation, control and supervision financial market and financial organizations.

The withdrawal by the authorized body for regulation, control and supervision of the financial market and financial organizations of consent to the appointment (election) of a senior employee of a single accumulative pension fund or a voluntary accumulative pension fund is the basis for revocation of previously issued consent (consents) to this senior employee in other financial organizations, banking, insurance holdings, branches of insurance companies (reinsurance) organizations that are non–residents of the Republic of Kazakhstan, branches of insurance brokers – non–residents of the Republic of Kazakhstan, branches of non-resident banks of the Republic of Kazakhstan.

A single accumulative pension fund or a voluntary accumulative pension fund is obliged to terminate an employment contract with a senior employee or, in the absence of an employment contract, take measures to terminate the powers of a senior employee in the following cases::

1) withdrawal by the authorized body for regulation, control and supervision of the financial market and financial organizations 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.

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Republic of Kazakhstan

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