The special economic zone is targeted to be created on the
territory of EXPO-2017 International Specialized Exhibition. The
Management Board of the Centre will be formed to be the advisory
body of the President on the issues of AIFC. Its general function
will be to make recommendations the activities of AIFC. Supervision
of AIFC and its members is supposed to be made by the National Bank
of Kazakhstan. To ensure the activities of AIFC, the National Bank
of Kazakhstan will establish the management company and attract the
English Law Isle
It is supposed to create a special legal regime with its own
jurisdiction based on English law principles, as well as with
foreign judges. AIFC will attract financial institutions of
Kazakhstan and following members to its platform:
companies engaged in auditing and
legal advice on the implementation of financial transactions;
infrastructure companies of the
AIFC Participants will be provided with the special taxation
procedure. Participants holding the National Bank license will be
subject to exemption from corporate income tax for 10 years.
Members of AIFC holding the permissive document of the Financial
Supervisory Authority will be subject to exemption from corporate
and personal income tax for 10 years.
An important role in the risk management process will play
infrastructure companies. Kazakhstan Stock Exchange will determine
the common rules of exchange trade at the AIFC site, as well as the
rules for securities transactions. The stock exchange will operate
on the basis of a multicurrency settlement system for securities. A
single registrar will carry out the issue of securities. The issuer
will be able to determine solely the preferable legislation to
issue the securities.v
Terms of trade, functioning of risk management and settlement on
an organized market are in line with international standards. The
law concept provides introduction of trading with securities at a
future settlement date. The procedure for the settlement of
financial instruments will be developed in the nearest future. The
amendments will ensure the continuity of trade and settlement
processes as well as reduce market risk in transactions by
continuous auction. In order to form a liberal regime on the
procedures for issuance, listing and placement of securities, the
law concept introduces a notification procedure for registration of
securities issues. The draft law highlights the signing of the
multilateral memorandum of the International Organization of
Securities Commissions IOSCO on mutual understanding on
consultation, cooperation and information exchange.
This memorandum provides an international benchmarking for the
implementation of cross-border cooperation between the regulators
of stock markets in different countries. This will provide for the
expansion of opportunities for issuers of Islamic securities, as
well as distribution of the deposit guarantee system for Islamic
The draft law is designed to create a center that will provide
favorable and attractive environment for the activities of its
members in view of its best practices.
Thus, the law concept is supposed to:
involve international financia
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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