Eurasian Economic Union

Consultative Committee for Financial Markets

Consultative Committee for Financial Markets under the Eurasian Economic Commission (hereinafter, the "Committee") was established following the results of the 28th session of the EEC Collegium held on 25 October 2012. The aim of the Committee’s activity is to harmonize the national legislations of the EAEU member states in the area of financial markets given the best international practices.

The key objectives of the Committee comprise the holding of consultations with the representatives of the EAEU member states and working out of proposals for the EEC Collegium, including those based on the internationally recognized principles, standards and best international practice related to:

• formation and implementation of the harmonized policy in the sphere of the financial services (banking services, insurance services, services in the securities market, etc.) in the EAEU member states;
• creation of conditions for expansion of the mutual trading of financial services and establishment, in the long term, of the common financial market;
• creation of favorable conditions for investments of the entities of the EAEU member states that are operating in the territory of one member state of the EAEU as well as in the territories of other members states of the EAEU.

To fulfill the assigned tasks, the Committee is exercising the following functions:

• participates in analyzing the international treaties, decisions of the Supreme Council, Board and EEC Collegium as well as the regulatory legal acts of the EAEU member states;
• drafts proposals related to harmonization of the legislation in the sphere of financial services; elimination and (or) minimization of barriers, other limitations for access of the business entities to the financial markets; enhancement of quality of the state regulation in the sphere of financial services: drafting of the international treaties, resolutions and recommendations of the EEC; ensuring the uniform approach to application of the legislation of the parties governing activity in the sphere of financial services; improvement of the information interaction between EEC and authorized bodies of the parties in charge of financial services sector; organization of cooperation between representatives of the business community and authorized bodies of the parties responsible for development of the financial markets; improvement of the procedure of monitoring and control over execution of provisions of the international treaties that form the EAEU contractual base, and decisions made by the Supreme Council and EEC.

Representatives of the Agency of the Republic of kazakhstan for Regulationa and Development of the Financial Market are members of the Committee and regularly participate in the work of the Committee.

 

 

Development of the legal framework 

Improvement of the EAEU Regulatory Framework 

The  NBK is currently working on concluding a number of international agreements and enforcement of the agreements signed within the frameworks of the EAEU.

1. The Agreement on Information Exchange, including confidential information, in the financial sphere with a view to create conditions in the financial markets to ensure the free capital movement

This Agreement establishes a procedure for exchange of information, including confidential information, between the financial market regulators of the EAEU member states, access to and storage of the confidential information received; areas of mutual cooperation; holding of joint meetings and consultations between the regulators in order to oversee the cross-border organizations.

The Agreement was signed by the heads of the governments and central (national) banks of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation on 23 December 2014 in Moscow, within the framework of the sixteenth session of the EEC Council.

The Republic of Kazakhstan completed the internal procedures for enforcement of the Agreement by adoption of the Decree of the Government of the Republic of Kazakhstan dated 7 October 2016, No. 572 “On approval of the Agreement on Exchange of Information, Including Confidential Information, in the Financial Sphere to Create Conditions in the Financial Markets that Ensure the Free Capital Movement.”

The official effective date of the Agreement is 21 October 2016.

Given the accession of the Republic of Armenia to the EAEU Treaty, the work was initiated on the accession of the Republic of Armenia to the Agreement on Exchange of Information, Including Confidential Information, in the Financial Sphere to Create Conditions in the Financial Markets that Ensure the Free Capital Movement dated 23 December 2014, through signing a separate Protocol of Accession of the Republic of Armenia to said Agreement.

The Republic of Kazakhstan completed the internal procedures required to sign the Protocol by adoption of the Decree of the Government of the Republic of Kazakhstan dated 28 December 2016, No. 888 “On Signing the Protocol of Accession of the Republic of Armenia to the Agreement on Exchange of Information, Including Confidential Information, in the Financial Sphere to Create Conditions in the Financial Markets that Ensure the Free Capital Movement dated 23 December 2014.”

2. Agreement on Coordinated Approaches to Regulation of Currency Legal Relations and Adoption of Liberalization Measures

The agreement was been developed in accordance with point 4 of Article 64 of the EAEU Treaty and determines the approaches to regulation of currency legal relations and liberalization measures in the EAEU member states.

The draft agreement is planned to be concluded on behalf of the governments and central (national) banks of the EAEU member states.

Currently, the  NBK is preparing to submit the draft of a respective decree for consideration by the Office of the Prime Minister of the Republic of Kazakhstan.

3. Agreement on Harmonization of Legislation of the Member States of the Eurasian Economic Union in the Sphere of the Financial Market

The agreement has been developed in accordance with point 3 of Article 70 of the EAEU Treaty to create a common financial market within the framework of the EAEU, ensure mutual recognition of licenses for activities in the sectors of banking services, insurance services and services in the securities market and non-discriminatory access to the financial markets of the EUEU member states, and also proceeding from the need to improve state regulation and exercise control and supervision in the financial markets of the member states.

The agreement is planned to be concluded on behalf of the governments and central (national) banks of the EAEU member states.

At present, the  NBK carries out the internal procedures required to sign the agreement.

4. Agreement on Admission of Brokers and Dealers of One Member State of the Eurasian Economic Union to the Exchanges (Trade Organizers) of Other Member States

In accordance with the Minutes of the meeting of the EEC Advisory Committee on Financial Markets of the ECE dated 3 October 2014, No. 2-TS/KKF, EEC drafted the Agreement on Admission of Brokers and Dealers of One Member State of the Eurasian Economic Union to the Exchanges (Trade Organizers) of Other Member States. Drafting of the Agreement is a pilot project and is aimed at the point elimination of restrictions and unification of requirements of the national legislation of the EAEU member states.

Up to date, the Republic of Kazakhstan has completed the internal approval of the document. The comments and proposals of the Republic of Kazakhstan obtained on the basis of results of the internal approval are currently under consideration by the EEC.