AFSA registers first Non-exempt fund for retail investors
AFSA has registered the first Non-exempt fund[1] for retail investors – SBI Active Fund. This move is a significant development because it allows retail investors to access a broader range of investment opportunities similar to those typically available to professional investors using Exempt funds[2].
Unlike exempt funds, Non-Exempt Funds are subject to more rigorous regulatory oversight and transparency requirements. They enhance the diversity of investment offerings by providing a broader range of financial products that cater to different investor categories. Additionally, they facilitate wider market participation, which ultimately contributes to the development of financial markets. Non-Exempt Funds generally impose fewer restrictions on investor participation, making them accessible to a wider audience, including retail investors. This inclusivity helps increase liquidity and market activity within the AIFC.
AFSA is enabling retail investors to explore advanced investment strategies, which could include more flexibility in terms of asset allocation, risk exposure, and potential returns. This could also lead to a more dynamic retail investment market in Kazakhstan.
AFSA Chief Executive Officer Nurkhat Kushimov said: “This is a significant development that offers a lot more opportunities for retail clients and while I know that it is a step forward, I would also like to remind that customers wishing to use this new opportunity should be aware of the higher risks that go with it. And while AFSA has the protections in place that retail clients should use, consumers should ensure that they make informed and well-researched decisions and make sure that any AIFC financial services firms they deal with have appropriate licences from AFSA.”
Reference:
The Astana Financial Services Authority (AFSA) is the independent regulator of the Astana International Financial Centre (AIFC), which is established in accordance with the Constitutional Law of the Republic of Kazakhstan “On the Astana International Financial Centre” for the purposes of regulating financial services and related activities in the AIFC. AFSA administers the AIFC Regulations and Rules and is responsible for the authorization, registration, recognition and supervision of financial firms and market institutions in the AIFC.
Over 3,000 firms from 82 countries are registered in the AIFC. These firms provide banking, insurance, investment, professional and other services. The range of financial services offered at the AIFC is comparable to the list of services available in long-established financial centers of the world, such as London, Hong Kong, Singapore, Dubai and others. www.afsa.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favorable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
Contact information:
Public Relations and Communications Division of AFSA: +7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]
[1] A Non-Exempt Fund is any Collective Investment Scheme whose Units are Offered in the AIFC and which is not an Exempt Fund.
[2] An Exempt Fund is a Collective Investment Scheme whose Units are Offered in the AIFC only by way of a private placement to Professional Clients and in the minimum subscription amounts of US$50,000.
