AFSA Note on Recognized Non-AIFC Members

Note on Recognized Non-AIFC Members

The Astana Financial Services Authority (“AFSA”) can recognize non-AIFC financial firms by granting the status of Recognized Non-AIFC Member (“RNAM”), which enables non-AIFC licensed firms to onboard the AIFC Astana International Exchange (“AIX”) as a trading member, according to AIX membership rules and approval process. The RNAM status does not enable a firm to offer any financial services in the AIFC or in Kazakhstan other than having access to trading activities in the AIX. Having remote access to the AIX allows RNAMs to buy and sell securities traded in the AIX on behalf of and to their clients located in jurisdiction where the RNAM is duly authorized to perform financial services. Full list of RNAMs is available here.

To have the right to offer financial services within the AIFC territory, a firm must obtain a license of the AFSA and establish presence in the AIFC. Full list of firms authorized by the AFSA is available here. Unless the RNAM is a licensed firm by the National Bank of Kazakhstan or the Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan it cannot offer financial services in Kazakhstan either.

RNAM status enables internationally licensed firms to become a trading member of the AIX, without having to undergo a lengthy application process to be fully licensed when the only sought activity is access and trading on AIX. An internationally licensed firm means that the firm is duly licensed in a jurisdiction other than AIFC. This jurisdiction will be assessed by AFSA to be broadly equivalent with the regulatory framework of AIFC, its laws and supervision of financial activities. Recognition process will provide the RNAM with the possibility to offer trading on AIX to its clients through a specific order.

Acknowledging importance of cross-border financial transactions and role of capital markets in empowering economic development the AFSA is pleased to facilitate recognition process of RNAMs willing to access trading activity on the AIX. Yet, the RNAMs must be cautious when publicizing its recognition status granted by AFSA and limit its client offering to having access to the AIX and trade its listed financial instruments. AFSA will consider any false and misleading information regarding the offer of financial services in the AIFC by RNAMs and non-licensed firms, as a breach of its rules and regulations and may take enforcement actions where it will deem necessary.

Please note that information contained above is purely informative and as such cannot be considered as legal advice for any specific purposes. You should not use the above mentioned information as a basis for decision making without consulting AFSA Officers or a legal consultant first. Accordingly, we expressly disclaim any liability for actions taken or not taken on the basis of information provided.

If you have any further questions, please submit your inquiry to the [email protected]. Should you wish to make complaints please use our online complaint submission tools available here.