Private management companies aspire to return to pension system of Kazakhstan
Astana. February 4. KazTAG - Private management companies aspire to legally return to the pension system of Kazakhstan, according to the concept of the bill “On introducing amendments to some legislative acts of Kazakhstan on pensions and the financial market” submitted by the National Bank (NB).
"It is proposed to provide the investor with the right to choose an investment strategy and a private management company for transferring his pension savings to investment management," reads the concept.
Such an approach, in the opinion of the financial regulator, “fully complies with international practice, and also allows depositors to exercise their right to choose the most effective investment strategies, create an institutional competitive environment in the market of pension services and gradually abandon from the state’s monopoly in managing private savings”.
“International experience also shows that in countries with DC pension systems (defined contribution - KazTAG), which also includes Kazakhstan, the choice of a pension assets manager is made by the depositor of pension savings,” reads the concepts.
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