President of Kazakhstan Kassym-Jomart Tokayev proposed to provide foreign companies with access to pension assets of citizens of the republic. He made such an initiative on September 5 at a meeting of the board of Management of the “Astana” International Financial Center (AIFC), reports the press service of Akorda.
The Head of State noted that one of the key indicators of a developed stock market is liquidity, which is primarily provided by institutional investors.
He added that the process of transferring up to 50% of pension savings by citizens to private investment managers has now begun. In this regard, Tokayev “proposed to consider the possibility of access to pension assets and financial instruments in the AIFC for foreign investment management companies”.
The President called another priority task a gradual increase in the threshold for the share and volume of securities on the local stock market in the case of simultaneous placement on foreign markets. He stressed the importance of stimulating the withdrawal of private Kazakhstani companies into the public field, which will confirm the transparency and effectiveness of their activities.
Tokayev noted that the development of the carbon market in Kazakhstan is one of the priorities of state policy. According to him, the EU countries are already preparing to introduce a border carbon correction mechanism, which can become a serious barrier to the export of Kazakh products to Europe.
In addition, the Head of State stressed the need to create effective financial mechanisms to respond to emergencies. In his opinion, various state insurance funds should become a tool to combat the consequences of natural disasters. The Government has been tasked, together with the Agency for Regulation and Development of the Financial Market and the AIFC, to study in detail the issue of creating such a fund in the jurisdiction of the Center.
The “Astana” International Financial Center (AIFC) is a state financial center located in Astana. It was officially opened on July 5, 2018. The center is positioned as a hub for innovation and business growth. It helps businesses to raise capital through regulation based on international standards, a developed financial infrastructure, an independent judicial system, innovation and expertise.
The AIFC operates on the basis of English common law, the legal status of the financial center is fixed by the Constitutional Law of the Republic of Kazakhstan. Unprecedented conditions have been created in the AIFC to attract international participants, which have no analogues in the post-Soviet space. Participants are provided with benefits up to 50 years old, simplified currency, visa and labor regimes.