This material has been prepared based on the Laws of the Republic of Kazakhstan On Civil Service of the Republic of Kazakhstan and On Combating Corruption.
Who Is Considered a Civil Servant?
According to Article 1 of the Law of the Republic of Kazakhstan On Civil Service of the Republic of Kazakhstan, a civil servant is a citizen of the Republic of Kazakhstan who, in accordance with the procedure established by law, holds a public office included in the Register of Political, Elected and Administrative Civil Service Positions and exercises official powers to implement the functions and objectives of the state.
The civil servant’s work is remunerated from the republican or local budgets, the National Bank of the Republic of Kazakhstan, and (or) the Special State Fund established by legislation on the return of illegally acquired assets to the state.
What Restrictions Apply to Civil Servants?
According to Article 14 of the Law of the Republic of Kazakhstan On Civil Service of the Republic of Kazakhstan, a civil servant, as well as a person temporarily performing the duties of a public office, is prohibited from acquiring securities.
Do These Restrictions Apply to Other Persons?
Yes. Article 13 of the Law of the Republic of Kazakhstan On Combating Corruption establishes similar restrictions for certain other categories of persons.
In particular, these restrictions apply to:
- persons holding a responsible public office;
- persons authorized to perform state functions;
- officials;
- members of territorial election commissions who exercise their powers on a permanent professional basis;
- employees of the National Bank of the Republic of Kazakhstan and its agencies;
- employees of certain authorized organizations in the aviation sector;
- employees of the authorized body for regulation, control and supervision of the financial market and financial organizations;
- persons equated to persons authorized to perform state functions who work in national management holdings, national holdings, national companies, national and regional development institutions, as well as their subsidiaries.
For these categories of persons, restrictions on the acquisition of securities also apply, subject to the exceptions provided by law.
Which Securities May Be Acquired Under the Applicable Exceptions?
The legislation provides for certain exceptions.
The following may be acquired and (or) disposed of in accordance with the procedure established by law:
- units of open-ended and interval unit investment funds;
- bonds;
- ordinary shares of commercial organizations, provided that the holding does not exceed 5% of the total number of voting shares of the respective organization.
Important
This material is provided for informational purposes only. In each specific case, we recommend seeking clarification from the legal or human resources department at your place of employment. The Company does not provide advice on the legality of actions taken by civil servants.