This client update includes amendments to the legislation of the Republic of Kazakhstan in September 2013.
The legislation outlined in this Client Update concern both public and private sectors. Some of them may be of interest to you as it may affect your business in Kazakhstan in certain way.
This month we would like to draw your attention to the following legal acts:
1) Pension rules for the Accumulative Pension Fund.
The Decree of the Government of RK dated 18 September 2013 No. 984 “On approval of the pension rights of the Unified Pensions Savings Fund (“UPSF”)” outlines legal relationship between the UPSF and its investors (beneficiaries).
This Decree set out rules for concluding agreements on pension savings out of mandatory pension contributions and agreements on pension savings out of mandatory professional pension contributions and rules for informing the depositor (recipient) on pension savings.
The Decree entered into force on 7 October 2013.
2) Rules for publishing information about the structure of the investment portfolio of the AIPF for account of benefit assets.
The Board of the National Bank of the RK approved the Decree No. 199 dated 26 July 2013, which adopts rules for the procedure and time lines of publication of UPSF information with respect to , the structure of the investment portfolio pension assets in the mass media. According to the rules, UPSF publishes information related to name and number of financial instruments, as well as percentage ratio of the investment value in these financial instruments to the UPSF investment portfolio. The information must be published on a quarterly basis, not later than the last day of the month following the reporting period, in the mass media. Also, the rules require UPSF informing the Committee for Control and Oversight over Financial Market and Financial Organizations about the fulfillment of publication requirement with reference to the mass media, within ten working days.
The Decree entered into force on 12 October 2013.
THE INTER-AGENCY COMMISSION FOR THE DEVELOPMENT OF OIL AND GAS AND ENERGY INDUSTRIES
1) Members of the Inter-agency Commission for the Development of Oil and Gas and Energy Industries changed.
Pursuant to the Decree of the Government of RK dated 3 September 2013 No. 912 “On amendments and additions to the Decree of the Government of RK dated 21 August 2007 No. 725 “On the formation of the Inter-Agency Commission for the development of oil and gas and energy industries” Uzakbay Karabalin, the Minister of Oil and Gas of RK, and Tamara Duisenova, the Minister of Labor and Social Protection of population of RK, were appointed members of the Inter-Agency Commission for the Development of Oil and Gas and Energy Industries.
At the same time, Serik Abdenov, former Minister of Labor and Social Protection of RK and Lyazzat Kiinov, Chairman of the Management Board of JSC ”National Company KazMunaiGas” were removed from the Commission.
The Decree became effective on 3 September 2013.
1) The Rules for insurance provisioning.
The Board of the National Bank of the RK adopted Resolution dated 25 February 2013 No. 75 approving the Rules for insurance provisioning.
An insurance (reinsurance) organization must create provisions for each insurance (reinsurance) contract and each class of insurance. The insurance provisions must be calculated with consideration of the volume of commitments taken on by insurance and reinsurance organizations under all available insurance (reinsurance) contracts regardless of the subsequent risk reinsurance. Insurance (reinsurance) organizations are required to file reports with the Committee for the Control and Oversight over Financial Market and Financial Organizations of the National Bank of the Republic of Kazakhstan per the established forms on a quarterly basis.
The Resolution came into effect within ten calendar days of its first official publication, i.e. from 6 October 2013, and applies retroactively as from 1 January 2012.
2) Instruction on accounting the insurance and reinsurance transactions in relation to “general insurance” and “life insurance”.
The Board of the National Bank of the RK adopted the Resolution dated 28 June 2013 No. 149 approving the Instruction on accounting the insurance and reinsurance transactions in relation to “general insurance” and “life insurance”.
The Instruction outlines rules for accounting insurance and reinsurance transactions in relation to “general insurance” and “life insurance”, which are carried out by insurance (reinsurance) organizations and insurance brokers.
Requirements for disclosing financial statements by insurance (reinsurance) organizations and insurance brokers, as well as requirements for accounting policies are set forth by the International Financial Reporting Standards.
Resolution came into force within ten calendar days from the first official publication date, i.e. from 6 October 2013 and is retroactively effective as from 1 January 2012.
On 4 October 2013, the President of RK signed a law “On the ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the United Arab Emirates for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and its Protocol.”
Information contained in this Client Update is of general nature and cannot be used as legal advice or recommendation. Please seek for a specific advice in relation to any questions. Please note that Kazakhstan and Turkmenistan are emerging economies and their legislation and legal systems are in constant development. Should you have any questions or would like to discuss subjects addressed in this Client Update please contact us.