On Approval of Instruction on Regulatory Values of Prudential Norms, Methods of Their Calculation for Organizations Performing Investment Management of Pension Assets (стр. 3 )

29. Balance of money in the till of Organization end of day shall not exceed ten per cent of Organization’s owned assets.

Maximum balance of money on Organization’s current accounts with one second-tier bank (with two and more second-tier banks which are affiliates between each other) shall not exceed ten per cent of Organization’s owned assets.

30. Specified limitations of overall investment of Organization shall not be applied to securities of international financial organizations which may be acquired by Organization in accordance with procedure for pension funds investing specified by Resolution of Management Board of the Agency of the Republic of Kazakhstan n Regulation and Supervision of Financial Market and Financial Organizations as of October 27, 2006 No 225 “On Approval of Rules for Pension Assets Investment Management” (entered in the Registry of state registration of regulatory legal acts under No 3991).

31. Should Organization due to reasons beyond its control begin matching features of large participant of a bank, insurance (reinsurance) organization, open-end accumulative pension fund, it shall bring its activity in balance with requirements of point 23 and 26 of the Instruction within sixty days from the moment of that fact detection.

Chapter 6. Prudential Norms Compliance Control

32. Organization every business day as of end of previous business day, and end of every day-off preceding directly the current business day shall make calculations:

1) of R1 ratio values;

2) for compliance of executed investment with prudential norm 3 “Investment in Non-Government Securities of One Issuer, in Deposits at One Second-Tier Bank”.

33. Every month, not later than 18-00 of Astana time of the fifth business day, Organization shall submit to the authorized body in hard and electronic copy:

1) calculations of R1 ratio value, according to supplements 1-4 and 8 to the Instruction;

2) statement of average value of one conventional unit of pension assets of every fund, pension assets of which had been being under investment management of Organization at the beginning of current month, for expired month in the form according to supplement 5 to the Instruction;

3) information on nominal yield ratio (separately on every fund pension assets of which had been being under investment management of subject Organization at the beginning of the current month) in the form according to supplement 6 to the Instruction.

34. Calculations of R1 ratio shall be prepared in two hard copies, signed by chief executive officer, chief accountant and authenticated by the stamp of Organization. One copy shall be submitted to the authorized body, the second – kept at Organization.

35. The authorized body and Organization shall monthly calculate values of R1 and R2 ratios on the basis of financial and other statements, submitted to the authorized body by Organization in hard and electronic copies in accordance with regulatory legal acts of the Republic of Kazakhstan, and additional information for calculation of prudential norm submitted by Organization in hard copy in form according to supplement 6 to the Instruction.

The authorized body shall place in its site information on credit, interest rate, exchange and funds risks for every Organization on a monthly basis, not later than 28th day of the month following the accounting month.

36. Additional information for calculation of prudential norms shall be submitted in electronic copy as of the first day of the month following the accounting month, not later than 18-00 of Astana time of the fifth business day of that month.

Additional information in hard copy shall be signed by chief executive officer of Organization or his deputy, chief accountant and other persons authorized to sign specified information according to internal documents of Organization, stamped and kept at Organization.

37. Data in calculations and in additional information for prudential norms calculations shall be specified in KZTenge – the national currency of the Republic of Kazakhstan. Unit of measurement used for their preparation shall be set in KZT thousand. The sum less than KZT five hundred shall be rounded to zero, equal to and more than KZT five hundred shall be rounded to KZT one thousand.

38. Calculations specified in sub-point 1) of point 32 of the Instruction and additional information for prudential norms calculation specified in point 34 of the Instruction shall be submitted in electronic copy using conveying system of guaranteed delivery with cryptographic protection ensuring confidentiality and impossibility to correct submitted data.

39. The identity of data submitted on the electronic media and data submitted in hard copy shall be ensured by the chief executive officer of Organization or his deputy.

40. Should there be any discrepancy between values calculated in accordance with point 31 of the Instruction, and R2 ratio, and prudential norms specified by the Instruction, Organization shall inform the authorized body within one calendar day about the fact and the reasons of the discrepancy with action plan for its resolving attached.

41. Should Organization combine types of professional activities in securities market and/or activity on attraction of pension contributions and carrying out of pension payments, calculation of prudential norms shall be executed with consideration of peculiarities specified by Resolution of the Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations as of August 22, 2008 No 119 «In Approval of Methodology for Calculating the Prudential Norms for Organizations that Combine Different Types of Professional Activity in Securities Market“.

Supplement 1 to Instruction on Regulatory Values of Prudential Norms, Methods of Their Calculation for Organizations Performing Investment Management of Pension Assets

________________________________________________________

Name of Organization

Credit Risk

for “____” ___________ 200__

(KZT thous.)

No	Name of Items	Amount	Extent of Risk in Percentage Terms	Calculating amount
Group I
1.	KZT in cash		0
2.	Foreign currency in cash of countries having sovereign rating at least “АА-“ from “Standard&Poor's” agency or rating of the similar level from one of the other rating agencies		0
3.	Government securities of the Republic of Kazakhstan, except for bonds issued by local executive bodies		0
4.	Deposits at National Bank of the Republic of Kazakhstan		0
5.	Government securities of the foreign countries having sovereign rating at least “АА-“ from “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies		0
6.	Securities issued by the following international financial organizations: the International Bank for Reconstruction and Development, the European Bank for Reconstruction and Development, the Inter-American Development Bank, the Bank for International Settlements, the Asian Development Bank, the African Development Bank, the International Finance Corporation, the Islamic Development Bank, the European Investment Bank.		0
7.	Refined precious metals and metal deposits, including at non-resident banks of the Republic of Kazakhstan having rating at least “АА-“ according to international scale of “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies		0
8.	Futures, options, swaps, forwards acquired at counterparties, included into the І risk group		0
9.	Remuneration accrued on assets included into the I risk group		0
Group II
10.	Foreign currency in cash of countries having sovereign rating at least “BBB-“ from “Standard&Poor's” agency or rating of the similar level from one of the other rating agencies and countries without relevant rating appraisal		20
11.	Government securities of the foreign countries having sovereign rating from “А+” to “А-“ from “Standard&Poor's” agency or rating of the similar level from one of the other rating agencies		20
12.	Bonds issued by local executive bodies of the Republic of Kazakhstan included into official list of stock exchange		20
13.	Deposits at second-tier banks of the Republic of Kazakhstan having long-term credit rating at least “А-“ according to international scale of “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies or rating at least “kzA-“ according to national scale of «Standard & Poor's» agency, at resident bank subsidiaries, non-resident parent bank of which has long-term credit rating at least “АА-“ according to international scale of “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies		20
14.	Non-government debt securities issued by foreign organizations having rating at least “АА-“ according to international scale of “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies		20
15.	Non-government debt securities issued by organizations of the Republic of Kazakhstan in accordance with legislation of the Republic of Kazakhstan and other countries, having rating at least “А-“ according to international scale of “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies, or rating at least “kzA-“ according to national scale of “Standard & Poor's” agency		20
16.	Principal protected notes issued by organizations having rating at least “АА-“ according to international scale of “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies		20
17.	Futures, options, swaps, forwards purchased at counterparties, included into the ІI risk group		20
18.	Cash in transit		20
19.	Remuneration accrued on assets included into the II risk group		20
Group III
20.	Government securities of the foreign countries having sovereign rating from “BBB+“ to “BBB-“ from “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies		50
21.	Deposits at second-tier banks of the Republic of Kazakhstan having long-term credit rating from “BBB+” to “BBB-“ according to international scale of “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies or rating from “kzAA+“ to “kzAA-“ according to national scale of «Standard & Poor's» agency, at resident bank subsidiaries, non-resident parent bank of which has long-term credit rating from “A+” to ”A-“ according to international scale of “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies		50
22.	Non-government debt securities issued by foreign organizations having rating from “A+” to “А-“ according to international scale of “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies		50
23.	Non-government debt securities issued by organizations of the Republic of Kazakhstan in accordance with legislation of the Republic of Kazakhstan and other countries, having rating from “BBB+“ to “BBB-“ according to international scale of “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies, or rating from “kzAA+” to “kzAA-“ according to national scale of “Standard & Poor's” agency		50
24.	Principal protected notes issued by organization having rating from “A+” to “А-“ according to international scale of “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies		50
25.	Futures, options, swaps, forwards acquired at counterparties, included into the ІII risk group		50
26.	Remuneration accrued on assets included into the III risk group		50
Group IV
27.	Deposits at second-tier banks of the Republic of Kazakhstan having long-term credit rating from “BB+“ to “BB-“ according to international scale of “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies or rating from “kzBB+” to “kzBB-“ according to national scale of «Standard & Poor's» agency, at resident bank subsidiaries, non-resident parent bank of which has long-term credit rating at least “А-“ according to international scale of “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies		100
28.	Non-government debt securities issued by foreign organizations having rating from “BBB+” to “BBB-“ according to international scale of “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies		100
29.	Non-government debt securities issued by organizations of the Republic of Kazakhstan in accordance with legislation of the Republic of Kazakhstan and other countries, having rating from “BB+“ to “BB-“ according to international scale of “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies, or rating at least “kzBB-“ according to national scale of “Standard & Poor's” agency		100
30.	Principal protected notes issued by organization having rating from “BBB+” to “BBB-“ according to international scale of “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies		100
31.	Infrastructure bonds of organizations of the Republic of Kazakhstan		100
32.	Futures, options, swaps, forwards purchased at counterparties, included into the ІV risk group		100
33.	Reverse repo transactions		100
34.	Remuneration accrued on assets included into the IV risk group		100
Group V
35.	Deposits at second-tier banks of the Republic of Kazakhstan provided that those bank are issuing banks included into the first category of “shares” sector of official list of stock exchange		130
36.	Non-government debt securities issued by organizations of the Republic of Kazakhstan in accordance with legislation of the Republic of Kazakhstan and other countries, having rating from “B+“ to “B-“ according to international scale of “Standard & Poor's” agency or rating of the similar level from one of the other rating agencies, or rating from “kzB+” to “kzB-“ according to national scale of “Standard & Poor's” agency		130
37.	Futures, options, swaps, forwards purchased at counterparties, included into the V risk group		130
38.	Remuneration accrued on assets included into the V risk group		130
Group VI
39.	Non-government debt securities issued by organizations of the Republic of Kazakhstan in accordance with legislation of the Republic of Kazakhstan and other countries, included into sub-category “debt securities without rating of the first sub-category” of official list of stock exchange		200
40.	Non-government debt securities issued by organizations of the Republic of Kazakhstan in accordance with legislation of the Republic of Kazakhstan and other countries, included into sub-category “debt securities without rating of the second sub-category” of official list of stock exchange		300
41.	Debt securities were exposed to delisting by organizer of tenders		300
42.	Futures, options, swaps, forwards acquired at counterparties, included into the VI risk group		250
43.	Deposits at second-tier banks, shares of which were exposed to delisting by organizer of tenders		300
44.	Remuneration accrued on assets included into the VI risk group		250
45.	Total assets weighted on extent of credit risk		Х