National Bank won’t require Kazakhstanis to report trades via foreign brokers

The National Bank has decided not to require Kazakhstani investors to report their cooperation with foreign brokerage companies or specific transactions on the stock market. The regulator has already introduced this regulation into force along with corresponding amendments to the existing legislation, the Qazaq Association of Minority Shareholders (QAMS) reported.

The document specifically mentions that all existing agreements with foreign brokers and management companies for providing services on the foreign exchange market and the stock market should be removed from the register maintained by the National Bank through its territorial branches.

The new regulation will also alter the way authorities monitor foreign exchange transactions. For example, the document includes scenarios where foreign currency agreements aimed at facilitating the transborder movement of capital do not need to be registered with the National Bank. Previously, such transactions were restricted to deals involving the National Bank, the Ministry of Finance, banks, insurance and brokerage companies, and AIFC residents, as well as transactions related to public debt, the UAPF or euro bonds issued by Kazakhstani entities. Additionally, transactions involving foreign real estate, copyrights and stock market activities conducted through domestic brokers or management companies are also not subject to compulsory registration.

Now, the list of exemptions from registration includes transactions with retail investors on the foreign exchange market and the stock market conducted through foreign brokers and portfolio managers. Benefits will also apply to foreign currency transactions if their sole participant is an AIFC resident, as the platform has no requirements for such transactions.