Majilis approved a bill about regional financial center of Almaty

/INTERFAX-KAZAKHSTAN, Astana, April 26, 06/ - Majilis (the lower chamber) of the parliament of Kazakhstan on Wednesday in Astana approved in the second final reading the bill about the regional financial center of Almaty (RFCA) and the attendant legislation " About insertion of changes and additions in some acts of law on questions of establishment of RFCA. As it is noted in the conclusion of the committee of majilis on finance and budget, in the new edition of the legislation about RFCA the primary conception of creating the regional financial center was saved, and also a number of offers from committees and deputies of majilis was taken into account. In particular, deputies made a decision about establishment of plenipotentiary state body on regulation of RFCA's activity. "Because of this, all basic regulations of the project were brought in accordance with the norm on establishment this state body," is indicated in the conclusion. Besides, according to the conclusion, "by the article 10 of the legislation a specialized financial court of RFCA is confirmed as the court of the first instance in order to consider disputes, which follow from civil, labor, administrative and other legal relationships." At that it is determined by the legislation that the Supreme Court of Kazakhstan is the court of appellate and supervision instances for the specialized court of RFCA. The bills were given for the further examination to senate (the upper chamber) of the parliament. Boston Consulting Group is the Consultant of Kazakhstan's government in the project of foundation of the regional financial center in Almaty. It's planned to found RFCA in the form of a special zone with a special legal regime. Unlike the existing at present special economic zones RFCA will not have an exact territory. Territoriality principle will be followed by the requirement for RFCA participants about presence of the office in Almaty city. It's planned that foreign citizens and persons without citizenship, coming to Kazakhstan for making business in RFCA, will receive entrance visa at coming to the international airport of Almaty city. Prolonging of visa validity period, as well as changing of visa categories can be made by RFCA's executive body without this person's leaving the country. It's planned that RFCA participants will have the possibility to execute paper work and make deals only in English, normative decisions of the executive body will also be translated into English. Besides, for convenience of RFCA participants, the financial center court to be founded in Almaty. It's planned that main groups of players in RFCA, besides broker-dealer companies, will consist of issuers, investors and market-makers. It's planned that the list of potential issuers will comprise Kazakhstan big and medium companies, medium companies from Russia, Ukraine and Central- Asian region, Kazakhstan banks, RFCA brokers on index funds and other securities, provided with assets, as well as other foreign issuers. It's expected that investors in RFCA, will be Kazakhstan pension funds, unit funds, insurance organizations, Kazakhstan banks and companies, Russian and other regional banks, other big and medium investors, foreign investors, Islamic investors. Besides, partial compensation of expenses for audit depending on volumes of issue, discounts for listing up to zero cost of listing in the first year of RFCA's functioning, as well as release from registration fee in RFCA are offered as the economic incentive for making attractive conditions for issuers. It's planned to make tax control of RFCA participants only based on tax statement, confirmed by auditor's report. The republic budget will provide the establishment of the regional financial center in Almaty for 2006 with more than KZT1.5 bn. (current KZT124.19/$1) A special state agency, which directly submits to the head of the state, was formed with a view to successfully establish the RFCA. Almaty with the population of about 1.3 m. people is the biggest city of Kazakhstan, until December of 1997 it was the capital of the state. Currently central offices, practically, of all big commercial banks of Kazakhstan, the National bank, the Kazakhstan stock exchange, and other financial institutions of the country are situated in this city. [2006-04-26]