Consultation Paper No.1 on proposed amendments to the AIFC FEES Rules

PROPOSED AMENDMENTS TO THE AIFC FEES RULES (FEES)

1.This consultation paper is issued by the Astana Financial Services Authority in order to invite public comment on the amendments to AIFC Fees Rules (“FEES”) for Islamic finance business in the AIFC. The proposed amendments to the FEES areset out in the Annex 1 to this paper.This paper summarises the approach taken to drafting amendments to FEES.

2.Comments are invited in relation to any aspect of the proposed amendments to FEES. AFSA may amend the proposals in light of the comments received.

3.The proposals in this consultation paper will be of interest to individuals, financial services companies and investors who are interested in doing business in the AIFC.

BACKGROUND

4.Financial services firms operating in the AIFC are subject to various sets of fees that are payable to the AFSA and/or the Companies Registrar.

5.On10 December 2017 the AFSA Board of Directors approvedthe amendments to the AIFC General Rules, which extended the scope of Regulated Activities in the AIFC. New two types of Regulated Activities included Islamic Banking Business and Providing Islamic Finance.

6.The AFSA analysed the practice of other financial centres in relation to the application of fees for financial services. The most expensive types of financial services are usually Deposit taking and Providing Credit. Given that the Islamic Banking Business activity includes (i) raising, accepting and managing funds or money placements; and/or (ii) managing unrestricted Profit Sharing Investment Accounts, which are similar to deposit-taking activity of conventional banks, the AFSA proposed to set the application fee for Islamic Banking Business activity in the amount of USD 15 000. Since the Providing Islamic Financing is less risky activity from regulatory perspective, the AFSA proposed to set the application fee for Providing Islamic Financing in the amount of USD 10 000.

HOW TO PROVIDE COMMENTS?

7.All comments should be in writingand sent to the addressor email specified below. If sending your comments by email, please use “Consultation Paper No 1” in the subject line. You may, if relevant, identifythe organisation you represent in providing your comments. The AFSA reserves the right to publish, including on its website, any comments you provide, unless you expressly request otherwise at the time of making comments.

Comments to be addressed by post:

Policy and International Relations

Astana Financial Services Authority (AFSA)

8 Konayev Street, Building B, Astana, Kazakhstan

or emailed to: consultation@afsa.kz Tel: +8 7172 613781

WHAT HAPPENS NEXT?

8.The deadline for providing comments on the proposals is 16 March 2018. Once we receive your comments, we shall consider if any refinements are required to this proposal.