Majilis approved in the first reading draft law about regional financial center in Almaty

/INTERFAX-KAZAKHSTAN, Astana, March 9, 06/ - Majilis (lower house) of Kazakhstan parliament on Thursday at plenary session approved in the first reading draft law About regional financial center of Almaty (RFCA), and also draft law about changes and additions in some legislative acts on matters of RFCA creation. "Main purpose of presented drafts is determination of legal regime of activity of participants of regional financial center of Almaty, management of which is entrusted executive body, not included in the government and formed by order of the president of the Republic of Kazakhstan as state institution - agency for regulation of activity of regional financial center of Almaty", - Arken Arystanov, chairman of this state agency informed, representing the documents to majilis. He reminded, that these drafts are announced by the head of the government as urgent to be considered by the country's legislative body. The head of the government noted, that according to draft law on RFCA this financial center will represent "special legal regime, important distinguishing features of which are fixing after authorized body of the center functions on state registration of legal entities - participants of RFCA by principle "one window", execution of petition of visa issue, realization of state control over observation of participants of the republic's legislation about labor". Besides, A.Arystanov said to "key authorities" of state agency on regulation of RFCA activity we may relate "establishment of requirements to issuers and securities, which will be admitted to list of special trade ground of financial center, approval of rules to compensate expenditures of issuers for audit". "Concentration of the above functions within authorized body will allow to provide complex servicing of all participants in efficient order", - A.Arystanov is confident. He also noted, that "for increase of investment attractiveness of financial center the draft stipulates for institution of RFCA court, which will be court of oblast level, considering disputes of financial center's participants". Besides, he noted, the draft stipulates for creation of international council attached to authorized body RFCA, which will be consultative-advisory structure for elaboration of recommendations relative to development strategy of RFCA on the basis of international experience. This council, A.Arystanov explained, will consist of five people - foreign specialists. For its functioning, he said, the republican budget for 2006 allotted amount, equivalent $750 th. For realization of law about RFCA, chairman of state agency said, it is offered to introduce changes and additions in a number of legislative acts, particularly, in Civil code (general part), in laws about state registration of legal entities, about justice bodies, about securities market and other legislative acts. As it is known, work to study opportunities on creation in Almaty of regional financial center started in 2003. Consultant of Kazakhstan government on project of creation in Almaty of regional financial center is company Boston Consulting Group. RFCA is assumed to be created in the form of special zone with peculiar legal regime. At that in contrast to existing special economic zones at present time in the republic RFCA will not have its distinctly outlined territory. Principle of territoriality will be observes by requirements for RFCA participants about presence of office on the territory of Almaty. It is planned, that foreign citizens and persons without citizenship, arriving on the territory of Kazakhstan to fulfill activity in RFCA, will get entrance visa in international airport of Almaty. At that prolongation of visa's validity, and also change of category of visas on petition of person may be fulfilled by executive body of RFCA without departure of this person out of the republic. It is expected, that RFCA participants will get opportunity to maintain office work and conclude deals only in English, normative decisions of executive body also will be maintained in English. Besides, for convenience of RFCA participants on the territory of Almaty is planned to create court of financial center. It is planned, that main groups of players in RFCA besides broker-dealer organizations will consist of issuers, investors and market makers. It is assumed, that list of potential issuers will include Kazakhstan companies of big and medium size, companies on medium size from Russia, Ukraine and central-Asian region, Kazakhstan banks, brokers of RFCA on index funds and other securities, secured by assets, and also other foreign issuers. Investors in RFCA, as it is expected, will be Kazakhstan pension funds, unit trusts, insurance organizations, Kazakhstan banks and companies, Russian and other regional banks, other big and medium private investors, foreign investors, Islamic investors. Along with this as economic stimulus for creation of attractive conditions for issuers partial compensation of expenditures for audit are offered depending upon volumes of emission, discounts for listing right up to zero level of listing value the first year of RFCA work, exemption from collection for registration in RFCA. Tax control of RFCA participants is assumed to hold only on the basis of tax statement, confirmed by auditing report. For creation in Almaty of regional financial center republican budget for 2006 allotted amount over KZT1.5 bn. (current 129.45/$1). Almaty with population nearly 1.3 m. people is the biggest city of Kazakhstan, till December 1997 - the state's capital. At present time central offices of practically all big commercial banks of the republic, National bank, Kazakhstan stock exchange, other financial institutes of the country are situated in this city. [2006-03-09]