On the concept of further development of institutions for independent risk assessment (rating agencies, credit bureaus) and collection agencies

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Decree of the President of the Republic of Kazakhstan dated August 13, 2012 No. 362.

To be published in

Collection of acts of the President and

The Government of the Republic

Kazakhstan

In order to further develop institutions for independent risk assessment (rating agencies, credit bureaus) and collection agencies, I HEREBY DECREE:

1. To approve the attached Concept for the Further Development of institutions for independent Risk Assessment (rating agencies, credit bureaus) and collection agencies (hereinafter referred to as the Concept).

2. The Government of the Republic of Kazakhstan and the National Bank of the Republic of Kazakhstan should be guided in their work by this Concept.

3. The Government of the Republic of Kazakhstan and the National Bank of the Republic of Kazakhstan should bring their decisions in line with this Decree.

4. This Decree shall enter into force from the date of signing.

President

Republic of Kazakhstan

N. Nazarbayev

Approved by Decree of the President of the Republic of Kazakhstan on August 13, 2012 No. 362

The concept of further development of independent risk assessment institutions (rating agencies, credit bureaus) and collection agenciescontainment

1. Vision for the development of institutions for independent risk assessment (rating agencies, credit bureaus) and collection agencies

Introduction

Analysis of the current situation

Purpose and objectives

Execution periods and expected results

2. Basic principles and general approaches for the development of institutions for independent risk assessment (rating agencies, credit bureaus) and collection agencies

3. The list of regulatory legal acts through which the implementation of the Concept is expected

1. Vision for the development of independent risk assessment institutions (rating agencies, credit bureaus)and collection agency Introduction

The concept of further development of institutions for independent risk assessment (rating agencies, credit bureaus) and collection agencies (hereinafter referred to as the Concept) was developed in order to improve the activities of national rating agencies, credit bureaus and collection agencies, as well as to achieve a positive impact from the activities of these institutions on the overall economic risk management system.

The concept meets the main provisions of the Strategic Development Plan of the Republic of Kazakhstan until 2020, approved by Decree of the President of the Republic of Kazakhstan dated February 1, 2010 No. 922, and will contribute to expanding the range of services provided by financial market entities, improving the confidence of investors and consumers of financial services.

The development of the Concept also takes into account the existing international experience in the development of institutions for independent risk assessment (rating agencies, credit bureaus) and collection agencies.

This Concept is intended to ensure the unity of approaches to the formation and implementation of state policy for the development of institutions for the independent assessment of risk management (rating agencies, credit bureaus) and collection agencies, as well as a methodological basis for improving regulatory legal acts regulating this area.

The concept defines the main goals, objectives, directions and expected results of the development of institutions for independent risk assessment (rating agencies, credit bureaus) and collection agencies.

Analysis of the current situation

Global-scale crisis phenomena have shown that the previously existing approach to economic risk management was not effective enough and was characterized by fragmentation, lack of consistency, and sometimes a high degree of subjectivity. The high uncertainty in the development of the global economy has once again demonstrated the urgent need for a well-developed and wide network of risk assessment institutions.

The Republic of Kazakhstan, which is widely integrated into the global economic and information space and needs free access to the global capital market and the attraction of foreign capital into the economy, should strive to comply with all aspects of international best practices and standards in the development of institutions for independent risk assessment.

When applying a systematic approach to understanding economic risk management in the Republic of Kazakhstan, the following institutional classification of subjects of this field has been identified:

Category 1. Data sources useful for risk assessment (information contained in public and private databases, including banks, credit and other financial institutions).

Category 2. Institutions that process and systematize information, as well as provide information services (rating agencies, credit bureaus, organizations providing statistical and analytical information).

Category 3. Organizations that use information for the purposes of state and non-state regulation (self-regulation) (authorized state bodies, self-regulatory organizations, exchanges, and other legal entities).

Category 4. Organizations that use information to assess their risks (financial institutions, other legal entities).

Category 5. Organizations that eliminate the negative consequences of risk realization (authorized government agencies, courts, collection agencies, arbitration courts).

Taking into account the existing risk management structure in relation to independent risk assessment institutions (rating agencies, credit bureaus) and collection agencies, an analysis of the current situation has shown the following.

Rating agencies. Since the 20s of the last century, the leading US information conglomerates began to provide their clients with a new service, assigning ratings to securities. At the same time, the ratings of those times only in general terms resembled those classic ratings that are assigned today. The modern approach to the rating process developed mainly in the 1970s in the USA. When the requirements for rating agencies were first developed, a list of recognized rating agencies was compiled, which included Moody's Investors Services and Standard & Poor's. After such recognition, the requirements for the availability of ratings were prescribed in the acts of the SEC (Securities and Exchange Commission - the body responsible for regulating the US securities market). In the future, the legislative recognition and conditional obligation of ratings served as the main impetus for the development of the rating services market in the form that can be observed today. In general, the reputation of Moody's Investors Services and Standard & Poor's as leading rating agencies developed after their recognition by the US regulator.

The rapid development of the international financial market and, as a result, the rating services market has created conditions for the development of local rating agencies. Local agencies have been created at various times to serve the financial markets of countries such as Japan (Japan Credit Rating Agency), Canada (Dominion Bond Rating Service), Australia (Baycorp Advantage), Germany (Feri EuroRating) and others. These agencies are now operating far beyond their regions. In 2012, the list of recognized rating agencies in the European Union included 17 agencies from 11 countries.

The main types of ratings are ratings of reliability and management quality, but the most common is a credit rating. This type of rating is an integral part of the financial and stock markets and represents an independent and objective opinion on the creditworthiness of companies, enterprises, regions and countries.

Historically, the development of the rating business is closely linked to the formation of the stock market. As the availability and growth of types of financial instruments for various groups of investors and the population increased, there was a need for an independent, professional and objective risk assessment. In other words, people who want to purchase shares of companies and their bonds in order to make a profit and increase their savings do not have the opportunity to conduct a professional analysis of the creditworthiness of issuing companies, and in most cases, they do not have the proper knowledge and education. Rating agencies with qualified and professional analysts come to their aid.

In many countries, local rating agencies are now actively operating, providing ratings on their national scale (without taking into account sovereign risk), since investors prefer to use information sources of various levels to fully assess their risks and knowledge of "local" characteristics is important. Local borrowers, who are financed on the domestic market, are interested in a simpler and more inexpensive procedure compared to the procedure of the world's leading leaders. In addition, often undervalued ratings by international agencies exert strong pressure on Kazakhstani issuers, while domestic ratings do not yet have an adequate impact on the market.

Companies in Kazakhstan use the services of 7 rating agencies: Moody's Investors Services, Standard & Poor's, Fitch Ratings, A.M. Best, Expert PA Kazakhstan, rating agency of the Regional Financial Center of Almaty (hereinafter - RA RFCA) and KzRating.

The first four are foreign rating agencies. Their services are used by companies that raise money on international capital markets. These are mainly large banks and national companies. This group of rating agencies does not have employees in Kazakhstan, does not fall under local jurisdiction and operates remotely, sending its employees to Kazakhstan in case of emergency.

The demand for the services of these agencies is due to the established international practice, when rating is a prerequisite for financing transactions. In addition, the demand for the services of these agencies is supported by certain provisions of the Kazakh legislation in the field of regulation of financial markets and financial organizations.

In addition to foreign rating agencies, three local rating agencies were opened in Kazakhstan in 2008-2010: Expert of RA Kazakhstan, RA RFCA and KzRating. These three agencies meet the requirements for rating agencies whose ratings are recognized for listing purposes on the Kazakhstan Stock Exchange JSC and are included in the list of rating agencies whose ratings are recognized by the authorized body.

As of the end of 2011, 96 companies were registered in Kazakhstan, which at that time had public contact ratings of various types. Of these, about a third (30 out of 96) were assigned by three local rating agencies, 17 by Expert RA Kazakhstan, 10 by RA RFCA and 3 by KzRatings. The most common type of rating was the rating of the company's creditworthiness and the reliability of its bonds.

As practice shows, the rating culture in Kazakhstan is developing rapidly, but mainly due to the effect of a low base. It should be recognized that the existing system of independent risk assessment does not meet the requirements of the market. This was most evident during the financial crisis. As of December 1, 2009, 25 Kazakhstani companies defaulted on non-government bonds on 43 bond issues with a total nominal value of KZT 273,975 million. At the same time, the existing rating system at that time was not able to adequately assess the existing risks. Due to their high cost, the ratings of large foreign agencies were not available to many companies, and besides, neither the established practice of the securities market nor regulation at that time required a rating for Kazakhstani issuers.

Even before the crisis, companies that defaulted in 2008-2009 had high debt loads and low efficiency (profitability) values. This suggests that the high level of risk inherent in defaulting companies could have been identified in advance.

As a result, the regulatory authorities decided on the need to introduce a mandatory requirement for the availability of a rating rating for issuers of corporate bonds, which entered into force on January 1, 2010. From that moment on, all new bond issues began to receive ratings, which became the starting point for the development of rating agencies in Kazakhstan. At the same time, the potential of using ratings to identify and manage risks in the economy is very far from being fully exploited.

The problems of the independent risk assessment system are not limited to the insufficient level of development of rating services and their regulation. There are other reasons that do not allow for an objective and timely identification, assessment and mitigation of risks. The main problem is the low level of information transparency in Kazakhstan. The results of the latest study by the Standard & Poor's rating agency, conducted in 2009, indicate that the level of information transparency of the 22 largest public Kazakhstani companies is about 44%. This is a relatively low indicator compared to other countries. According to available statistics on developing countries, the level of information transparency of the 90 largest Russian companies in 2008 was 56%, and the 300 largest Chinese companies 46%. Developed countries demonstrated an even higher level of information disclosure: the indicators of the information transparency study in 2003 for the UK, France, Germany, the USA and Japan were respectively 71 %, 68 %, 56 %, 70 % and 61%.

Summarizing the above, we can conclude that currently the activities of rating agencies are complicated by the following factors:

1) the lack of an accreditation mechanism for local rating agencies, including the establishment of minimum requirements for founders, qualification requirements for managers and key employees, and requirements for the assessment methods they use;

2) narrow application of ratings in the legislation of the Republic of Kazakhstan;

3) the low level of ratings application in business practice, due to the lack of development of risk management systems in companies in Kazakhstan;

4) ensuring transparency of the activities of rating agencies according to the methodology of assigning ratings.

Credit bureaus. Credit bureaus, as an institution, relate to the financial market infrastructure and form an information base about borrowers and provide it to lenders.

On the one hand, credit bureaus allow banks to adequately assess their risks, taking into account the available information about a potential borrower. On the other hand, they facilitate access and conditions for obtaining a loan for bona fide borrowers with a good credit history.

Credit bureaus are an important element in encouraging responsible lending. During the consumer credit crisis in Hong Kong (China) and South Korea, which occurred in 1998, reckless lending in the absence of an all-encompassing credit information system led to excessive debt owed by individuals and a subsequent increase in the number of personal bankruptcies. Since then, a comprehensive credit reporting system has been introduced in Hong Kong (China) to reduce the risk of a repeat of the crisis.

The active issuance of loans in the pre-crisis period in conditions of insufficient coverage of the population by the credit bureau system and the absence of negative information (a short form of a credit report on a credit history subject containing information on the presence of overdue debts of over one hundred and eighty calendar days) in Kazakhstan led to over-crediting of individuals and legal entities, as well as the subsequent increase in non-performing loans in the banking sector of Kazakhstan during the global financial crisis.

Thus, according to the World Bank, in 2006 and 2007, the coverage of the population of Kazakhstan (the number of subjects, individuals and legal entities with credit histories in the database of private credit bureaus) by the private credit bureau system was only 5.5% and 13%, respectively.

At that time, the share of doubtful category 5 loans and bad loans in the structure of the loan portfolio of second-tier banks increased from 7% in 2008 to 38% in 2009.

The international practice of collecting credit information is represented by four main models:

1) Private commercial model - collection and presentation of credit information is carried out by private credit bureaus on a commercial basis (USA, Russia);

2) mixed model - collection and presentation of credit information is carried out by state credit registries (GCR) and private credit bureaus (most European countries, Latin American countries, Turkey);

3) state non—commercial model - collection and presentation of credit information is carried out only by the GCR (France);

4) State commercial model - collection and presentation of credit information is carried out by commercial credit bureaus owned by states (central banks) (Sri Lanka and India).

Taking into account the established models of credit information collection in world practice, the Law of the Republic of Kazakhstan dated July 6, 2004 "On Credit Bureaus and the Formation of Credit Histories in the Republic of Kazakhstan" (hereinafter referred to as the Law on Credit Bureaus) was amended, according to which a mixed model of credit information collection was formed in Kazakhstan, which includes a non-profit credit bureau with a state participation and two licensed private credit bureaus: First Credit Bureau LLP and Central Asian Credit Bureau LLP.

It is envisaged that private credit bureaus will compete with each other by ensuring the quality and cost of services, additional information they collect on a voluntary basis, and additional types of services. The non-profit credit bureau with state participation will play the role of a reference database, collect standard credit information from banking and quasi-banking structures and be used for government regulation and supervision of banking activities.

A credit bureau with government participation will address issues related to the protection, safety, confidentiality, and up-to-date information about credit histories contained in the credit bureau's databases.

A negative credit reporting system was also introduced to reduce the risk of creditors. Therefore, credit bureaus can play a major role in enabling lenders to assess accounts receivable and set reasonable and responsible lending limits.

According to the Law of the Republic of Kazakhstan "On Credit Bureaus and the Formation of Credit Histories in the Republic of Kazakhstan", in addition to the mandatory information providers provided for by this Law, any other persons may also be voluntary information providers on the basis of information submission agreements. Therefore, international financial organizations, as well as micro-credit organizations, can participate in information exchange with credit bureaus of all levels (public and private).

The main users of the information provided by credit bureaus are banks and other financial organizations. Courts and law enforcement agencies are also entitled to receive information about credit histories in accordance with legal requirements.

According to the annual rating assessment of the World Bank "Doing Business" based on the results of 2011:

The credit information index of Kazakhstan has grown from 4 to 5 (the index evaluates the effectiveness of rules and practices that affect the coverage, volume and accessibility of credit information that can be obtained from the state credit registry or private credit bureaus);

The indicator of the number of subjects (individuals and legal entities) with credit histories in the database of private credit bureaus increased from 29.9% to 37.6%. At the same time, the same indicator in countries such as the USA, Argentina, Australia, Israel, Korea is 100%, in countries such as Mexico, the Czech Republic, Turkey, Lithuania, the values of this indicator are above 60 %;

The total number of credit histories as of the end of the 1st quarter of 2012 is 4.63 million, including 4.53 million individuals and 95.2 thousand legal entities. From 2005 to the 1st quarter of 2012, the annual growth rate of credit histories is 14% (the average annual growth of 661 thousand credit histories);

By the end of the 1st quarter of 2012, 52% of the economically active population of the Republic of Kazakhstan had their own credit history, whereas at the end of 2006 the same indicator was 12%.

One of the indicators of the information coverage of the database of credit histories and the activities of credit bureaus is the hit rate indicator (the percentage of successful requests). Since the establishment of the private credit bureau in 2006, the hit rate has increased from 43% to 79% in Q1 2012, indicating a rapid increase in the number of entities with credit histories.

In view of the above, the problematic aspects of the existing credit information collection system are:

1) ensuring the reliability of information contained in the databases of credit bureaus;

2) lack of access to a number of government information databases, the information of which is of interest for expanding credit reports of credit bureaus and is useful to financial institutions that are clients of credit bureaus;

3) ensuring the maximum possible coverage of information by the credit history generation system.

To date, these problems do not provide a full-fledged opportunity for the development of the credit history system in Kazakhstan. In this regard, the settlement of problematic aspects is expected as the state credit bureau implements its functions, the creation of which is envisaged in accordance with the Law of the Republic of Kazakhstan "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on the regulation of banking and financial organizations in terms of minimizing risks."

Collection agencies. Debt collection, as a separate type of business, appeared in the United States more than 40 years ago. At the same time, the first companies dealing with debts were formed there back in the 30s of the last century. At the moment, according to various sources, there are from 5,000 to 6,500 such agencies. Collectors in foreign countries prefer to work remotely, their main tools are telephone, Internet and mail.

In their activities, collection companies in the United States are guided by a special document - the Fair Debt Collection Practices Act, adopted in 1978. This law recognizes the unlawful use of threats of physical harm to the debtor, his relatives or property, threats to ruin his reputation, the use of insults and obscene language when talking to the debtor, the use of constantly repeated phone calls. In addition to the federal law, in some states there are also regional ones that further tighten the rules for fair collection. They may contain stricter requirements or restrictions, as well as provide collection agencies with additional features that increase the effectiveness of collection.

The European debt collection practice is younger than the American one, but it is very diverse. There is no law like the United States in Germany, but there is a professional association of collection agencies that unites more than 530 members. The collection business is also very developed in the UK. There, its model is similar to the American one, but differs in a more liberal legal regulation of activities. Debt business has also become widespread in Austria, where debt collection activities are strictly licensed by the federal authorities. A special feature of foreclosure in this country is that, in accordance with the law, part of the creditor's costs for paying for the services of a collection agency can be assigned to the debtor.

There are about seven organizations active in Kazakhstan that position themselves as collection agencies, and a significant number of law firms whose charters specify debt collection and collection services. Therefore, understanding the specifics of collection activities is currently difficult.

Among the organizations that are exclusively engaged in collection activities, we can single out such as KSS, YUSB Collector Kazakhstan, FASP. Basically, collection agencies are structures related to banks, or represent the interests of large collection companies in Russia, such as YUSB Collector Kazakhstan, FASP, and operate on the basis of contracts for the recovery of accounts receivable.

Currently, the activities of collection agencies are not regulated by special legislation, are not licensed or controlled by the state through its authorized bodies. A number of collection agencies have their own internal codes of conduct that agency employees must adhere to in their work with debtors. A positive factor in the activities of collection agencies is their assistance in freeing banks from their unusual debt collection function, improving the image aspects of banking, and enabling collection agencies to work professionally and more scrupulously with debtors, monitor their behavior, and form a debt collection history. This allows you to either collect the debt or part of it, or provide the banks with information that the bank can use to conclude about the future prospects for debt collection, for example, about possible subsequent debt cancellation and reduction of created provisions.

In the context of the post-crisis recovery, much attention should be paid to the problem of lending in Kazakhstan. The main reason for the decrease in lending is the large volume of non-performing loans in the loan portfolio of banks. Thus, as of May 1, 2012, the amount of loans related to doubtful category 5 loans and uncollectible loans amounted to 32.95% of the total loan portfolio of second-tier banks, whereas as of May 1, 2010, the amount of uncollectible loans and doubtful category 5 loans amounted to 35.47%. Thus, there was no significant improvement in the situation. Meanwhile, international experience shows that collection agencies are a fairly effective debt collection mechanism.

Collection agencies can work under a contract of assignment for actions to ensure repayment of debt, under an agreement on assignment of the right of claim, purchase debt, as well as carry out its subsequent securitization. There is also such a form of work of collection agencies, when they independently, at their own expense, form a collection history for working with the debtor, and subsequently sell it to the creditor, who can use it as an independent source's opinion to make a decision on further recovery or cancellation of the debt.

However, the real mechanism for eliminating the negative consequences caused by the risks of non-repayment of credit funds is mainly based only on the capabilities of the traditional judicial system, which currently carries heavy operational loads and requires a lot of time from its participants.

Independent institutions involved in the collection of accounts payable (collection agencies) remain insufficiently transparent and are not regulated by special legislation. The expansion of their activities in the current form may entail risks associated with the violation of debtors' rights, crossing the line that separates the legitimate activities of collectors from illegal ones.

Problematic aspects of collection activities in Kazakhstan are:

1) lack of accreditation of collection agencies and their government regulation;

2) lack of qualification requirements for staff and the risk of persons with criminal records and criminal behavior entering collection agencies;

3) the lack of opportunities to assess the behavior of employees of collection agencies when debtors complain about illegal activities and the lack of the possibility of influencing the collection agency by an authorized state body, with the exception of ways to respond within the framework of general supervision by the prosecutor's office;

4) non-transparency of activities and risks of violation of the legitimate rights and interests of creditors and debtors.

In all developed countries, collection organizations have long become an integral part of the business community, and many organizations use their services, including banks, insurance companies, telecommunications companies, and other organizations that incur overdue debts for services or goods. At the same time, paragraph 2 of Article 18 of the Constitution of the Republic of Kazakhstan establishes that everyone has the right to privacy of personal deposits and savings, correspondence, telephone conversations, postal, telegraphic and other communications.

Restrictions on this right are allowed only in cases and in accordance with the procedure directly established by law.

In accordance with paragraph 1 of article 39 of the Constitution of the Republic of Kazakhstan, human and civil rights and freedoms may be restricted only by laws and only to the extent necessary to protect the constitutional order, public order, human rights and freedoms, public health and morals.

In addition, when determining the status of collection agencies, it is necessary to pay attention to the fact that they should not be considered as part of the financial market infrastructure, since in most cases, taking into account the work of collectors on overdue loans from banks, collection activities are not financial activities. In addition, it should be noted that collection agencies can work on overdue loans issued under a civil contract, utility bills, as well as collecting any overdue debts.

The issue of the activities of collection agencies should be determined taking into account the analysis of issues related to:

1) the lack of a single database of collectors (number, organizational and legal form), the need to create it (maintaining a registry);

2) the lack of data on the number of contracts concluded, including the number of contracts concluded with financial market entities, respectively, the volume of use of debt collectors, the percentage of debt repayment using debt collection services and the identification of users of debt collection services;

3) lack of data (statistics) regarding complaints about the actions of collectors, as well as about court proceedings involving collectors;

4) the ratio of debts to the amounts of debts repaid by collectors.

Based on the experience of foreign countries, in particular the United States, it is necessary to determine the list of actions that employees of a collection agency are prohibited from performing, as well as the legal grounds for carrying out certain actions.

It is also necessary to define in detail the mechanisms of interaction of collection agencies with state executive and law enforcement agencies on information exchange.

As part of the implementation of these provisions, it seems appropriate to legislate the concepts of a collection agency, its status, formation procedure, principles of operation, responsibilities and liability measures for collectors for violations of the law, as well as the need for state regulation of their activities through the adoption of the Law of the Republic of Kazakhstan "On Collection Activities."

The implementation of such a law will have a positive impact on the activities of banking institutions and reduce the burden on the courts to work with debtors, as well as ensure the protection of the rights and interests of the debtor; determine the procedure, conditions, principles and forms of collection of overdue debts.

Purpose and objectives

This Concept concerns both non-governmental, independent institutions, as well as general issues of regulation and improvement of the economic risk management system and information dissemination. At the same time, as the global experience of overcoming the crisis shows, these institutions and traditional approaches to risk assessment need constant modernization.

The main purpose of the Concept is to improve the fundamentals of the application of the national rating, the regulation of the activities of credit bureaus in order to ensure the quality of information, as well as the legislative consolidation of the principles of the collection agencies.

To achieve this goal, the following tasks are defined:

1) development of national standards, principles and requirements for the organization of work of rating agencies in Kazakhstan;

2) creating conditions for the widespread use of ratings;

3) ensuring the reliability of information contained in the databases of credit bureaus, as well as increasing the coverage of information in the credit bureau;

4) the introduction of industry standards for the activities of collection agencies and improving the efficiency of their activities through government regulation;

5) ensuring a balance to protect the rights of debtors and creditors in the course of the activities of collection agencies.

Execution periods and expected results

As a result of achieving the set objectives, economic risks will be reduced by improving the risk management system.

As a positive change in risk management, the degree of individualization of risk assessment methods of financial institutions will be strengthened due to the activation of local rating agencies, ensuring the reliability of information contained in the database of credit bureaus, as well as expanding audience coverage.

The forecasts of the ratings of local rating agencies will focus on an in-depth analysis of the domestic market and reflect the changing conditions within the country.

It is expected that with favorable economic development of the country, the ratings coverage of issuers of securities traded on the organized market will reach 100% by 2020, of which about 50% will be assigned by local rating agencies.

Ensuring the completeness and reliability of information in credit bureaus will have a positive impact on the further development of this sector, improve the quality of services provided by credit bureaus, and also improve the indicators "credit information index" and "number of people and organizations with credit histories in credit bureaus" according to the World Bank rating.

It is expected that the coverage of people and organizations with credit histories in credit bureaus will reach 60% by 2017. The intensification of activities in the Kazakh market of collection organizations will help eliminate the negative consequences caused by risks, but will require increased attention from the state, since the constitutional rights of citizens may be violated in the process of claiming accounts payable.

In this regard, the adoption of a set of rules for collection activities is necessary in order to determine the line between protecting the rights of a creditor and arbitrariness, which will positively affect both the interests of creditors and the interests of debtors.

As a result, it is expected to develop a draft Law of the Republic of Kazakhstan "On collection activities" by 2014.

In general, the development of institutions for independent risk assessment and collection agencies will be carried out within 5 years.

2. Basic principles and general approaches to the development of institutions for independent assessment of risk contracting and collection agencies General basic principles and approaches

The first basic principle of the development of institutions for the independent assessment of risk management should be the principle of a systematic approach to consider these institutions as integral elements of the overall risk management system.

A systematic approach will make it possible to structure risk management, identify a list of institutions relevant to risk assessment activities and procedures aimed at identifying risks (recognizing an event as a risk), risk rating (risk assessment itself), monitoring and maintaining databases of risk information, and determine the mechanism by which risk information affects making preventive management decisions.

The second main principle is the principle of independence from the public and corporate sectors, as well as all stakeholders.

In the post-crisis economy, in the light of the strengthening of the non-governmental component of the risk management system, the role of independent institutions is increasing, designed to solve the problems of a lack of information about the state of market participants: rating agencies and credit bureaus.

As for the emphasis on the non-governmental component, its priority is due to the need to reduce the burden on government regulation and public budget expenditures, the degree of bureaucratization, prevent a monopoly on information resources and stimulate proactive actions by market participants.

The third principle is transparency and availability of reliable information for independent risk assessment institutions (rating agencies, credit bureaus) and collection agencies.

Basic principles and general approaches for the development of local rating agencies

In accordance with this Concept, the main principles of the development of local rating agencies are:

1) the independence of local rating agencies from issuers of financial instruments, implying a ban on participation in the authorized capital of rating agencies of legal entities that are issuers of financial instruments, with the exception of institutional investors with restrictions established by law (no more than five percent of the authorized capital);

2) competitiveness among local rating agencies;

3) voluntary assignment of ratings, with the exception of socially significant organizations (pension funds, insurance companies and second-tier banks);

4) transparency of the basic principles and approaches of rating methods.

As general approaches to the development of local rating agencies, this Concept provides:

1) conducting accreditation of all rating agencies operating in the Republic of Kazakhstan, the procedure for which should contain a set of requirements for rating agencies, the size of their authorized capital, qualification requirements for managers and senior staff, general requirements for assessment methods;

2) creating conditions for the widespread use of ratings.

Basic principles and general approaches for the development of credit bureaus

In accordance with this Concept, the main principles of the development of credit bureaus are:

1) limitation of participation shares in the authorized capital of a private credit bureau for organizations that, in accordance with the law, are mandatory suppliers and recipients of information to credit bureaus, in amounts not exceeding twenty-five percent of the authorized capital of the credit bureau;

2) the responsibility of credit bureau officials for using credit history information for the purposes of unfair competition in the credit services market.

As general approaches to the development of credit bureaus, this Concept provides for the provision of:

1) the reliability of information contained in credit history databases;

2) creating conditions for expanding the types of services provided by credit bureaus, as well as ensuring wide coverage of information by credit bureaus.

Basic principles and general approaches to the development of collection agencies

In accordance with this Concept, the basic principles of the development of collection agencies are:

1) state regulation of the activities of collection agencies;

2) guaranteeing the rights of consumers of financial services.

As general approaches to the development of collection agencies, this Concept provides for legislative consolidation:

1) the legal status of collection agencies, legislative regulation of the procedure for their creation, activities, limits of competence and responsibility;

2) measures to protect consumers of financial services;

3) qualification requirements for managers and employees of collection agencies;

4) the interaction of collection agencies with private bailiffs.

Effective ways and methods of solving established tasks

In order to implement this Concept, the following effective methods and techniques will be applied:

1) historical analysis in order to identify common patterns and trends in legislation and law enforcement practice;

2) comparative analysis based on positive examples of international practice in order to introduce its most effective and acceptable samples for Kazakhstan;

3) a systematic analysis based on an understanding of the institutions of independent risk assessment and collection agencies as integral elements of the overall economic risk management system and an understanding of their place and role within the framework of the designated system;

4) an integrated approach, which consists in the simultaneous development and adoption of drafts of all necessary regulatory legal acts in order to create comfortable starting conditions for the development of the above-mentioned institutions.

3. The list of normative legal acts through which the implementation of the Concept is provided

The implementation of the objectives and indicators defined by the provisions of this Concept is provided for by improving legislative and subordinate regulatory legal acts regulating the development of institutions for independent risk assessment (rating agencies, credit bureaus) and collection agencies.

At the same time, the existing tools for the implementation of this Concept are:

1) The Civil Code of the Republic of Kazakhstan;

2) The Civil Procedure Code of the Republic of Kazakhstan;

3) The Law of the Republic of Kazakhstan "On the Securities Market";

4) The Law of the Republic of Kazakhstan "On Credit bureaus and formation of credit histories in the Republic of Kazakhstan";

5) The Concept of financial sector development in the post-crisis period, approved by Decree of the President of the Republic of Kazakhstan dated February 1, 2010 No. 923, and other regulatory legal acts affecting the issues of independent risk assessment institutions.

President

Republic of Kazakhstan

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