The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan outlined a draft law on credit rating agencies, aiming to establish a dedicated legal framework for rating agency activities and the regulator’s supervisory approach. The agency linked the initiative to the current absence of specific legislation and requirements for creating and operating local rating agencies, as well as the high cost and limited accessibility of rating services for Kazakh companies, particularly mid-sized businesses. The draft draws on international practice and incorporates recommendations from the International Organization of Securities Commissions (IOSCO) and the Basel Committee on Banking Supervision, as well as European Union directives. It is designed around principles including objectivity, independence, transparency, adequate resources, ongoing supervision and reporting, and it sets out the agency’s functions and powers, compliance monitoring, conflict-of-interest management mechanisms, and disclosure and corporate governance requirements for rating agencies. The agency positioned the bill as part of implementing Kazakhstan’s financial sector development concept to 2030, and indicated that adoption would support the development of independent credit risk assessment and broaden business financing mechanisms through capital market instruments.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan 2025-03-27
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan presents draft law to regulate credit rating agencies
Kazakhstan's Financial Market Agency proposed a draft law to create a legal framework for credit rating agencies, addressing the lack of specific legislation and high costs. It incorporates international standards and principles like objectivity, independence, and transparency, with compliance and governance requirements. This is part of Kazakhstan's financial sector development plan to 2030, aiming to improve credit risk assessment and expand financing options through capital markets.