State agency for regulation of activity of RFCA approved lists of rating agencies and stock exchanges acknowledged by it

/INTERFAX-KAZAKHSTAN, Almaty, October 18, 06/ - The state agency for regulation of activity of the regional financial center of Almaty (RFCA) approved the list of rating agencies, whose estimates will be acknowledged by this department. "Different financial instruments, whose rating are determined by rating agencies, will be accepted to the special trading floor, which is created by the agency for regulation of activity of the regional financial center of Almaty. With this purpose the list of rating agencies and their daughter organizations, whose rating estimates are acknowledged by the agency, was approved," agency Interfax-Kazakhstan on Wednesday was informed in the department of public relations (press service) of the indicated state agency. Thus, it was noted in the press service, ratings of Moody's Investors Service, Standard & Poor's and Fitch are acknowledged by the agency. Besides, the state agency and RFCA defined stock exchanges. "The establishment of the regional financial center in Almaty predetermines the formation of the special trading floor, where world stock exchanges will cooperate. At present time RFCA approved the list of 17 stock exchanges acknowledge by it," informed the press service. Among approved stock exchanges are NYSE (USA), London Stock Exchange (Great Britain), Tokyo Stock Exchange (Japan), SWX Swiss Exchange (Switzerland), Shanghai Stock Exchange (China), Singapore Exchange (Singapore), Stock exchange Moscow interbank currency exchange CC, and also Kazakhstan stock exchange (KASE). Meanwhile for acceptance of financial instruments to the special trading floor of RFCA the state agency confirmed qualifying requirements to auditing organizations. Particularly, there must be not less than 2 auditors, certified according to international standards of financial statements, in the staff of the organization, and mandatory membership of the auditor or the auditing organization in a professional organization, which is a member of the International accountants' organization or acknowledged as the competent state body, must be determined. The requirements stipulate experience in an auditing activity of not less than three years, and also availability of an insurance agreement of civil responsibility of an auditing organization on obligations, which arise as a result of property trespass while making audit. At that affiliation with a being audited organization is excluded. As it was reported, RFCA is established in accordance with the special law, passed in June of this year in Kazakhstan. RFCA will function in the form of special zone with separate legal regime. At that in contrast to special economic zones, existing in the republic at present time, RFCA will not have its well-defined territory. Territorial principle will be kept by the requirement for participants of RFCA about availability of office on the territory of Almaty city. Foreign citizens and people without citizenship, who arrive on the territory of Kazakhstan for conducting activity in RFCA, will receive the entry visa on arrival to the international airport of Almaty. At that the prolongation of the period of visa's validity and also change of visa category by the application of the person can be fulfilled by the executive body of RFCA without departure of this person outside the republic. Participants of RFCA will receive the opportunity to make the record keeping and conclude deals only in English, normative decisions of the executive body will also be translated to English. It is planned that main groups of players in RFCA besides broker-dealers' organizations will consist of issuers, investors and market makers. It is assumed that Kazakhstan companies of big and medium size, companies of medium size from Russia, Ukraine and Central-Asia region, Kazakhstan banks, brokers of RFCZ on index funds and other securities, provided by assets, and also other foreign issuers will enter the list of potential issuers. As it is expected, Kazakhstan pension funds, share funds, insurance organizations, Kazakhstan banks and companies, Russian and other regional banks, other big and medium private investors, foreign investors, Islam investors will be investors in RFCA. Along with it, partial compensation of audit costs depending on issue volumes, discounts on listing right up to zero cost level of listing in the first year of RFCA work, exemption from fee for registration in RFCA are offered as economic incentives for creating attractive conditions for issuers. The tax control over participants of RFCA will be conducted only based on the tax report, approved by the audit report. With the purpose of successful establishment of RFCA a special state agency of the republic, which directly obeys the head of the state, was formed. Work on study of opportunity of establishment of the regional financial center in Almaty started in 2003. Boston Consulting Group acted as the consultant of Kazakhstan government on project of establishment of the regional financial center in Almaty. Almaty with the population of about 1.5 m. people is the largest city of Kazakhstan, until December 1997 it was the capital of the state. At present time central offices practically of all big commercial banks of the republic, the National Bank, KASE, other financial institutions of the country are situated in Almaty. [2006-10-18]