RFCA
Encyclopedia
Regional Financial Centre of Almaty City (RFCA) - business and financial centre in Almaty
, Kazakhstan
. Chairman - Arken Arystanov
.
The Regional Financial Centre of Almaty acts as a financial hub, attracting international investment funds as well as listed companies. The RFCA is a logical step to further diversify the Kazakh economy and decrease dependence on natural resources.
Agency also operates
, ex-president of the World Bank
was invited to advise on the RFCA development and to chair the International Advisory Board of the RFCA.
"Boston Consulting Group
", which has directly participated in the creation and development of financial centers in Singapore
and Thailand
, was chosen and assigned by the Government of the Republic of Kazakhstan, to implement the project of development Almaty as the leading financial centre in the region. This Company's main task was to study the advantages and disadvantages of the development of the Kazakhstan's financial market as well as the development of the recommendations for the legal infrastructure and management positions of the newly created regional financial center.
Three models – Dublin, Dubai
and Singapore
– were chosen as exemplars: the RFCA has absorbed their common features – namely, Accessibility, Transparency, Reliability, Incentives and State Support for all participants.
To ensure a competitive centre, the Kazakh Government has introduced a number of unprecedented measures: a highly favourable tax regime and a special body under the direction of Kazakhstan’s President to register and administrate players. The RFCA will be a special zone with unique legal governance. A major principle will be to provide equal conditions for both Kazakhstan and foreign participants.
- running of IPOs of national companies and banking institutions on the trading floor
- introduction of new financial instruments such as index funds (ETFs), securitised
assets (SPVs), futures, options, instruments of Islamic banking (Sukuk etc.) which will
be accessible to institutional investors and individuals and ensure effective
development of the Kazakh securities market;
- creation of a new technology-intensive infrastructure in line with other international
securities markets;
- involvement of the Bank for Kazakhstan Development into all RFCA activities
- annual issuance of treasury notes by the Finance Ministry;
- establishment of a Kazakh clearing house;
- optimum utilisation of internal investment opportunities through involvement of internal
investors looking for long-term investments
- implementation of large-scale investment projects to upgrade living standards, through
Government project-related bonds
- provision of tax incentives in cases of insuring against risks
- permission to the accumulation pension funds to establish associated organisations to
be registered as participants of the centre’s operations.
Almaty
Almaty , also known by its former names Verny and Alma-Ata , is the former capital of Kazakhstan and the nation's largest city, with a population of 1,348,500...
, Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...
. Chairman - Arken Arystanov
Arken Arystanov
Arkén Kenesbékovich Arystánov is the chairman of the Agency for regulation of the regional financial center of Almaty city and a board member of the Agency on regulation and supervision of financial market and financial organisations, Kazakhstan.- Education and early career :1988 – Graduated...
.
The Regional Financial Centre of Almaty acts as a financial hub, attracting international investment funds as well as listed companies. The RFCA is a logical step to further diversify the Kazakh economy and decrease dependence on natural resources.
Structure
The Almaty Financial Centre is managed by the Agency for RFCA development, which is a state body reporting directly to the President of the country.Agency also operates
- Kazakhstan Stock ExchangeKazakhstan Stock ExchangeThe Kazakhstan Stock Exchange is the principal stock exchange in Kazakhstan. It is located in Almaty and was founded in 1993 as the Kazakh Interbank Currency Exchange...
- National Rating Agency of Kazakhstan (RFCA Rating Agency)
- RFCA Academy (Securities Market Academy)
- RFCA-media
- Special Financial Court (independent, but forms an integral part of the Almaty Financial Centre)
International Advisory Board
James WolfensohnJames Wolfensohn
Sir James David Wolfensohn AO KBE FKC was the ninth president of the World Bank Group.-Early life:James Wolfensohn was born in Sydney, Australia, on 1 December 1933...
, ex-president of the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
was invited to advise on the RFCA development and to chair the International Advisory Board of the RFCA.
History
The creation of the RFCA was first mooted in the mid of 1990s but it was in 2003-2004 that President Nazarbayev formally proposed the project to Kazakhstan’s financiers. The RFCA was thus created in February 2006, as part of an initiative by the government to create a stock market operating to international standards of market regulation and best practice."Boston Consulting Group
Boston Consulting Group
The Boston Consulting Group is a global management consulting firm with offices in 42 countries. It is recognized as one of the most prestigious management consulting firms in the world. It is one of only three companies to appear in the top 15 of Fortunes "Best Companies to Work For" report for...
", which has directly participated in the creation and development of financial centers in Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
and Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
, was chosen and assigned by the Government of the Republic of Kazakhstan, to implement the project of development Almaty as the leading financial centre in the region. This Company's main task was to study the advantages and disadvantages of the development of the Kazakhstan's financial market as well as the development of the recommendations for the legal infrastructure and management positions of the newly created regional financial center.
Three models – Dublin, Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
and Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
– were chosen as exemplars: the RFCA has absorbed their common features – namely, Accessibility, Transparency, Reliability, Incentives and State Support for all participants.
To ensure a competitive centre, the Kazakh Government has introduced a number of unprecedented measures: a highly favourable tax regime and a special body under the direction of Kazakhstan’s President to register and administrate players. The RFCA will be a special zone with unique legal governance. A major principle will be to provide equal conditions for both Kazakhstan and foreign participants.
Mid-term measures
The package of mid-term measures will include…- running of IPOs of national companies and banking institutions on the trading floor
- introduction of new financial instruments such as index funds (ETFs), securitised
assets (SPVs), futures, options, instruments of Islamic banking (Sukuk etc.) which will
be accessible to institutional investors and individuals and ensure effective
development of the Kazakh securities market;
- creation of a new technology-intensive infrastructure in line with other international
securities markets;
- involvement of the Bank for Kazakhstan Development into all RFCA activities
- annual issuance of treasury notes by the Finance Ministry;
- establishment of a Kazakh clearing house;
- optimum utilisation of internal investment opportunities through involvement of internal
investors looking for long-term investments
- implementation of large-scale investment projects to upgrade living standards, through
Government project-related bonds
- provision of tax incentives in cases of insuring against risks
- permission to the accumulation pension funds to establish associated organisations to
be registered as participants of the centre’s operations.
Special Financial Court
Original Judges of Special Financial Court:- Madiyar Balken
- Adilzhan Dzhakishev
- Aigul Kydyrbaeva
- Gulnar Alibekovna
- Beibut Shermuhametov
- Denis Shipp