A Securities Broker-Dealer License enables an individual or a company to deal with securities which include shares, debentures, bonds, and other forms. A highly valued permission, it enables businesses to deal in securities on behalf of others and accept funds from clients in permitted jurisdictions. The license also enables acting as a market maker or as an agent to find clients for securities and also to act as an investment consultant.
A Securities Broker-Dealer License is obtained in Kazakhstan after registering as a Domestic TOO (Ltd. Company) which then obtains subsequent permission as a Financial Service Provider from the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market (‘Agency’) and Ministry of Economy. The license allows the business to accept customers from other jurisdictions.
While as a Securities Broker-Dealer you may be involved primarily in securities transactions, a Kazakhstan Securities Broker-Dealer License also enables businesses to perform a wide variety of activities including crypto transactions, e-wallet services, payment services, foreign exchange and securities dealing, financial consulting, depository agent activities, merchant services, issuance of debit cards (in specific cases), hosting of currency and crypto trading platforms and software development. It must be highlighted here that a Kazakhstan Securities Broker-Dealer License is unique because it is a single license that permits such a wide range of activities.
The basis of the license is not a statue but a permissive regime based on express written permission provided by the regulatory authority. While the registration of a financial services company is made with the Ministry of Economy, the Agency is entrusted with functions such as regulation of the financial services, money exchange services, investment funds, and insurance companies under the Decree of the President of the Republic of Kazakhstan dated November 11, 2019, No. 203 “On further improvement of the public administration system of the Republic of Kazakhstan”. The permission of the Agency is sought along with the registration of the Ministry of Economy for operating in the financial services sector as a financial services company.
How can I get a Kazakhstan Securities Broker-Dealer License?
There is a four-stage process for obtaining a Kazakhstan Securities Broker-Dealer License.
Stage 1: It involves the collection of documents mentioned below and the preparation of a POA.
Stage 2: Incorporation of a local company that is entered into the Commercial Register which takes around a week. Once the company is incorporated, a Business Identification Number (BIN) is received. In parallel, permission is obtained as a Financial Service Provider from the Ministry of Economy.
Stage 3: After the company is registered and permission is obtained from the Minister of Economy, a bank account is opened for the company and the application process with the Agency is also commenced. The process of registration is normally completed within 4 weeks.
Stage 4: The documents and bank account credentials, debit cards, digipass, and token generators are shipped via courier. An English translation of all documents is also provided.
Kazakhstan Securities Broker-Dealer License Requirements?
The documentation requirements for a Kazakhstan Securities Broker-Dealer License are minimal. The only key documents are a Notarized copy of the passport with apostille and notarized POA (provided by us) with the apostille. The appointment of nominees is possible if sought by the applicant. There are no requirements for office, staff, business references, or a compliance officer. Only a minimum of 1(one) director is required. There is also no minimum paid-up capital requirement. Assistance will be provided for the filing annual returns and contact details of an English-speaking accountant will be provided.
Kazakhstan Securities Broker-Dealer License Costs and Time
The fee for the application for a license varies on a case-to-case basis but is considered to be among the most cost-effective in the world. A license is also generally granted within 6-8 weeks of submission of a fully completed application. It includes the time for obtaining permission from the Ministry of Economy and the Agency.
NOTE: This license is an Accreditation to operate as a Financial Service provider, not a license offered by Kazakhstan. If a client wishes to verify his accreditation he needs to fly to Kazakhstan and arrange a personal appointment with the regulator. Accreditation issued cannot be published for counter verification purposes online, since only licensees who got their license based on the regulatory regime, will enjoy this so as anywhere else. Our lawyers will assist for translation purposes and join the client to the regulator if desired in the branch of the Agency where the accreditation was issued.
Empire Global has a team of experienced professionals who will assist you through the entire process of the Kazakhstan Securities Broker-Dealer License application including assistance in the preparation of documents, submission of application, and responding to any queries from the Agency and Ministry of Economy. We request you to get in touch with Empire Global at the earliest to understand the entire process in detail and apply for a Kazakhstan Securities Broker-Dealer License.