Master of Economics and Business Bissenova R.A.

Kyzylorda State University Korkyt Ata, Kazakhstan

Regulatory Agencies in Kazakhstan

The Agency on Regulation and Supervision of Financial Market and Financial Institutions which is authorized body that carries out regulation and supervision of the financial market created in 2004 in accordance with the Decree of the President of the Republic of Kazakhstan

The tasks of the authorized body:

- implementation of bound actions to prevent violations of rights and lawful interests of consumers of financial services;

- the creation of equal conditions for the functioning relevant species of financial organizations on the principles of fair competition;

- raising standards and methods of regulation and supervision of financial institutions, the use of measures to ensure the timely and full implementation of their commitments.

The main functions of the Committee are:

- issuance and revocation of permits for opening of financial institutions, their voluntary reorganization and liquidation, consent to the opening of the offices of financial organizations, as well as the determination of the procedure for issuing permits;

- consent or refusal to the established procedure for election of executives of financial institutions

- regulation procedure for issuing, suspension and withdrawal of licenses for professional activity in the financial market, the audit of financial institutions in cases stipulated by legislation of the RK;

- edition normative legal acts, obligatory for execution financial institutions, consumers of financial services, other individuals and legal entities on the territory of the Republic of Kazakhstan;

- approval of prudential standards and other mandatory norms and limits for financial institutions, including on a consolidated basis;

- determination in sequence with the National Bank of Kazakhstan consistent with international standards and other forms of financial reporting, as well as their list and timing of financial institutions and their affiliated entities;

- control over observance of legislation financial institutions of Kazakhstan on accounting and financial reporting, accounting standards;

- check of activity of financial organizations and their affiliated persons in cases and within the limits provided by the legislation of the RK;

- determining the order of application of limited measures and sanctions provided for by the legislation of the Republic of Kazakhstan;

- making decisions by agreement with the Government of the Republic of Kazakhstan a compulsory redemption of shares of financial institutions in cases stipulated by legislation of the RK;

- control over the activity of liquidation commissionsfinancial institutions in cases stipulated by legislation of the Republic of Kazakhstan

- publication of information on financial institutions.

Ministry of Finance of the Republic of Kazakhstan on the one hand performs as the body in the financial market to issue government securities, on the other hand, acts as the body exercising the state regulation of the financial market

In this connection, the basic units of the Ministry taking part in the process of regulation of the financial market are:

1) Financial Committee - foreign exchange controls;

2) The Treasury;

3) Main Tax Inspectorate;

4) The Department of State Property Management of the Ministry of Finance and Asset Management;

5) Department of privatization.

6) The Committee on Customs Control

Finance Committee - organizes the exchange control and independently carries out audits and inspections, oversee the implementation of budgets and off-budget funds, the organization of money circulation, the use of currency and credit resources, the state of the state internal and external debt, state reserves, providing tax incentives and other.

Treasury and its territorial bodies in order to strengthen financial discipline provided the following rights:

• be carried out in ministries, departments, enterprises, institutions and organizations checking financial documents, accounting ledgers, reports, plans, estimates, and other documents related to the receipt and use of the national budget of Kazakhstan;

• arrest operations on the accounts of enterprises, institutions and organizations which use funds from the republican budget of the Republic of Kazakhstan;

• collect the budgetary and extra-budgetary funds received by enterprises, institutions and organizations, in the case of utilization them on intended purpose with the imposition of fines;

• withdraw based on the written order of an official body of the Treasury documents showing violations of financial discipline;

• Require managers and other officials of the audited eliminate violations and shortcomings in execution of the budget.

Department of privatization in order to regulate the financial market has the following functions:

• The implementation of the state policy on privatization of state property;

• Ensure management of state shares, stakes in the company;

• Organization of the sale of state property of the RK;

• Licensing activities in the prescribed manner of investment - privatization funds and control over these activities.

Since 2004, the structure of the Ministry of Finance of the Republic of Kazakhstan entered Customs Board, the state legal enforcement agencies of executive power, endowed with special powers to perform its tasks and functions in the field of customs, etc.

The National Bank of Kazakhstan, as the main bank of the country, performs a kind of role in the financial markets, it is both a professional mediator, is actively leading the operation with financial instruments, on the other hand ─ government body of financial market regulation.

The National Bank of Kazakhstan has the board, directors and the main territorial and regional managements to realize their functions in local places.

The highest governing body is the board, led by the Chairman of the National Bank of Kazakhstan. The Board consists of 9 members: the Chairman, his 4 deputies and per representatives of the President and the Parliament and 2 representatives of the Cabinet of Ministers of the Republic of Kazakhstan.

Literature

1. Искаков У.М. Рузиева Э. Бохаев Д.Т. Финансовые рынки и посредники. Алматы-Экономика ,2005.

2. Международные валютно-кредитные и финансовые отношения: Учебник / Под ред. Л.Н.Красавиной.-Москва

3. «О Национальном банке РК» Закон РК от 30.03.1995 г.

4. «О банках и банковской деятельности в РК» Закон РК от 31.08.1995 г.