Article 63. The procedure for carrying out brokerage and (or) dealer activities of the Law on the Securities Market

Home / Laws / Article 63. The procedure for carrying out brokerage and (or) dealer activities of the Law on the Securities Market

1. Brokerage and dealer activities in the securities market are carried out on the basis of a license to carry out brokerage and dealer activities.

A license to carry out brokerage and dealer activities may be with the right to maintain customer accounts as a nominee holder or without the right to maintain customer accounts.

In cases established by the legislative acts of the Republic of Kazakhstan, the authorized body has the right to issue a license for dealer activity.

The broker and (or) dealer has the right to carry out the following banking operations on the basis of the relevant license of the authorized body for carrying out certain types of banking operations:

1) opening and maintaining bank accounts of legal entities;

2) opening and maintaining bank accounts of individuals;

3) transfer operations: execution of orders from individuals and legal entities for payments and money transfers;

4) bank loan operations on the terms of payment, urgency and repayment;

5) exchange operations with foreign currency, except for exchange operations with foreign currency in cash.

The procedure for conducting the banking operations provided for in this paragraph by the broker and (or) dealer is determined by the regulatory legal acts of the authorized body.

2. The broker and (or) dealer must comply with the requirements established by this Law, other legislative acts of the Republic of Kazakhstan, regulatory legal acts of the authorized body, to the procedure and conditions for transactions with equity securities and other financial instruments.

For violation of the procedure and (or) conditions of transactions with equity securities and other financial instruments established by this Law, regulatory legal acts of the authorized body, the broker and (or) dealer is liable in accordance with the laws of the Republic of Kazakhstan.

3. Relations between a broker and his clients arise on the basis of a contract for the provision of brokerage services, to which the rules of the contract of assignment or commission established by the Civil Code of the Republic of Kazakhstan apply.

The rules of the assignment agreement apply to the provision of nominal holding services, and the rules of the commission agreement apply to the provision of brokerage services on the organized securities market. Brokerage services in the unorganized securities market are provided on the basis of an assignment agreement or a commission agreement between the parties to the brokerage agreement.

3-1. A broker and (or) dealer who is a nominee holder has the right to provide electronic services to its clients in accordance with the procedure and on the terms determined by the authorized body, including opening a personal account, concluding transactions with securities and other financial instruments, as well as performing information operations.

3-2. A broker and (or) dealer, taking into account the specifics established by this Law, has the right to provide its clients with consulting and information services on issues related to transactions on the unorganized (over-the-counter) foreign currency and stock markets, as well as on the organized and unorganized securities markets of the Republic of Kazakhstan, and (or) services related to to conclude transactions in these markets at the expense and in the interests of clients.

Only brokers and (or) dealers may provide the services specified in part one of this paragraph to individuals in the territory of the Republic of Kazakhstan.

4. The organizational structure of a broker and/or dealer with the right to maintain customer accounts as a nominee holder should include the following structural units:

1) a trading unit engaged in concluding transactions with financial instruments;

2) the settlement unit that executes transactions with financial instruments, accounting for financial instruments and money of this broker and (or) dealer and his clients.

3) other structural divisions in accordance with the regulatory legal acts of the authorized body and internal documents of the broker and (or) dealer with the right to maintain customer accounts as a nominee holder.

5. Senior employees of the broker's and/or dealer's trading division with the right to maintain customer accounts as a nominee holder are not entitled to perform the duties of senior employees of the broker's and/or dealer's settlement division and vice versa.

6. (deleted - dated February 19, 2007, No. 230)

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

 This Law regulates public relations arising in the process of issuance, placement, circulation and repayment of equity securities and other financial instruments, the specifics of the creation and operation of securities market entities, defines the procedure for regulation, control and supervision of the securities market in order to ensure the safe, open and effective functioning of the securities market, protection of investors' rights. and holders of securities, fair competition of securities market participants.

President

Republic of Kazakhstan

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