AFSA has enhanced AIFC capital markets framework

Astana Financial Services Authority (AFSA) has introduced a series of amendments to AIFC Acts (AIFC Market Rules, AIFC Prudential Rules for Investment Firms and AIFC Glossary) in order to enhance AIFC capital markets and market institutions framework. These amendments come as part of the AIFC strategy to develop the capital market segment of the Financial centre.

Key elements of the enhanced capital market framework will be effective as of 1 July 2020 and relate to following:

(1) Opening opportunities for more companies to join the capital market by decreasing base capital requirements for AIFC Authorised Firms Dealing in Investments as Principal and Dealing in Investments as Agent:

(2) Introducing a Regional Equity Market Segment (REMS) to allow small and medium business to list on AIX, simplifying the regulatory requirements for this segment proportionate to their risks and listing them in own market segment category;

(3) Subject to certain restrictions allowing an entity, whose Securities or the Securities of the same Class are admitted to trading on Equivalent Regulated Exchange, to be exempted from providing additional disclosure under AIFC market disclosure rules and regulations and/or an Authorised Investment Exchange;

(4) Incorporating certain clarifications and improvements in MAR such as expanding the list of Exempt Securities, amending the compliance framework for issuers of Exempt Securities, allowing an Authorized Investment Exchange to approve a Prospectus produced under a different jurisdiction (provided certain criteria are met), elongating the validity of Expert report on assets or rights owned by Issuers, and other reporting and compliance requirements.

(5) Amending prospectus requirements to ensure their alignment with the best international practice by decreasing the amount of required information;

(6) Introducing miscellaneous amendments such as order and timescale for approval of Prospectus and extension of deadlines for submission of annual and semi-annual reports.

In the course of development of these amendments the latest international standards have been analyzed against the local market conditions. Concerns expressed by potential local medium-sized security issuers have been also addressed to introduce changes that will expand opportunities for businesses and investors, while maintaining reasonable requirements and conditions for safe market operation.

Development of capital markets is one of six strategic pillars of AIFC. The proposed amendments are aimed at building on the development of inclusive regulatory environment for local and foreign businesses and investors.

In case of further inquiries please feel free to contact AFSA Communications team at [email protected].