What can non-accredited investors buy in Kazakhstan
To clarify what types of financial instruments are available to non-accredited (unqualified) Kazakhstani investors, Kursiv.media reached out to Kazakhstan’s Agency for Regulation and Development of the Financial Market (ARDFM) for comment. According to the agency, the law permits non-accredited investors to purchase structured notes that meet strict rating and listing requirements.
Financial instruments available exclusively to accredited (qualified) investors include:
- Securities of non-resident companies (provided they are not listed on the Kazakhstan Stock Exchange);
- Shares and units of investment funds;
- Bonds without a maturity date;
- Derivative instruments (contracts) traded outside stock exchanges;
- Investment bonds (convertible into shares);
- Bonds issued via private placements (not listed on stock exchanges).
This means that unqualified investors may purchase any other financial instruments not restricted to accredited investors. Additionally, the ARDFM clarified that unqualified investors may purchase structured notes, provided these notes are traded on stock exchanges and backed by assets rated at least «BBB-» by Standard & Poor’s, Fitch or Moody’s.
In late November 2024, the ARDFM proposed a ban on unqualified investors buying risky financial products like structured notes.
To apply for recognition as a qualified investor, an individual must have at least three years of work experience in fields related to financial instrument transactions. Qualified investors must also have funds totaling more than 8,500 monthly calculation indices (approx. $59,500). A person can be recognized as a qualified investor only after completing 50 transactions with securities or other financial instruments on the securities market or stock exchanges, continuously for one year after applying for recognition.
