Kazakhstan’s government wants brokers and managing companies to prepare reports in a new way

The Agency for Regulation and Development of the Financial Market (ARDFM) of the Republic of Kazakhstan wants to amend the rules for disclosing information about transactions between companies managing investment portfolios and insiders, according to the legalacts.egov.kz website.

The new version of the rules is going to require brokers, dealers and managing companies to report to their boards about all transactions with insiders as soon as such information becomes available. At the same time, a risk managing division must obtain this information each month. The companies will be obliged to count such transactions if the amendments are approved.

The explanatory note to the draft document also says that it means the information about transactions with insiders, not between them. The agency wants to count and disclose this information due to positive international experience.

The document is going to stay available for public consideration until December 8, 2023.

According to Kazakhstani legislation on the securities market, the insider is an individual who has access to insider information because of owning securities of an issuer or affiliated entity, being a member of executive bodies of an issuer or its affiliated entity, and having a labor contract with an issuer or its affiliates.

Insider information doesn’t include information about the evaluation of securities or the financial situation of an issuer available in open sources. Insiders and their affiliates can’t be part of any transactions where insider information puts them or third-party individuals in a favorable position; give over insider information or any information based on insider data to third-party individuals, except for cases described by the legislation of the Republic of Kazakhstan, and give any recommendation to third-party individuals on transactions with securities based on insider information.