A law "On self-regulation" and the amendments thereto will come into effect as of 2016 in Kazakhstan

The question on introduction of self-regulation in appraisal activities was discussed at the National Chamber of Entrepreneurs of Kazakhstan "Atameken" with participation of the representatives of the market of the appraisal activities, which after the adoption of the Law "On appraisal activity" (revised edition) will become full members of the National Chamber.

As it was noted by Aizhan Bizhanova the expert of the Department on coordination of examination of regulatory legal acts of NCE, a member of the working group of the Mazhilis of the Parliament on the draft Law "On self-regulation", a document developed by the order of the Head of State, given last year at the Council of Foreign Investors.

According to her, NCE RK took part in all the processes of the work on the draft law.

The law comes into effect in May 2016, and during the following year the competent authorities shall bring the regulation in areas, where was introduced compulsory membership in non-profit organizations, except for the membership in the National Chamber of Entrepreneurs, in accordance with the law "On the self-regulation".

Therefore NCE RK together with the business community has started to study the issue of self-regulation in the appraisal and audit activities. In addition, the issues of introduction of self-regulation in other areas of business, such as customs clearance (customs brokers), taxation (tax consultants), environmental audit (environmental auditors), an energy audit (energy auditors).

There was raised an issue of tightening accountability in the sector of real estate and provision of tourist services through the transition to self-regulation of these industries. Association of insurance companies is also interested in improving the industry through the introduction of compulsory self-regulation. However, appraisal and audit activities are specific, as they combine features of both professional and entrepreneurial activities. And depending on the type of activity will be defined entities to join the created self-regulatory organization in a given sector.

The law contains the basic postulates, which can’t be modified by sector-specific laws with the help of which are introduced institutes of self-regulation based on mandatory membership.

"There defined specific features of SROs in the law that distinguish them from associations (unions), there has been developed the scheme of cooperation of SROs with NCE. For business entities - members of SRO was reduced the amount of mandatory membership fee, paid to NCE by the decision of the Congress. Also SRO members will have less audits (application of the risk management system), there will be introduced corporate mechanisms to prevent abuse of members of SROs by its leadership. Mandatory SROs will be administered exclusively by the laws after the procedure of regulatory impact analysis (RIA), which can be conducted by NCE in case of disagreement with the conclusions of public authorities on RIA, and many other issues of formation and development of self-regulation are reflected in the law, which was initiated by NCE - said Aizhan Bizhanova.

According to her, the introduction of self-regulation will create conditions for development of self-regulation and deregulation of the economy, optimize the state licensing system, there will appear an alternative mechanism of legal regulation of the market.

"If in 2011 - 2012 years, were performed two stage of reduction of permits by 30% each (i.e.60%), issued by government agencies, in the current year it is planned to reduce permits 50% and shift from the policy of "identification and punishment" to the policy of "prevention and promotion of good business. At the same time the introduction of compulsory self-regulation has a clear pattern of control: SROs combine market entities and monitors their activities and the state controls SROs on effectiveness of regulation of specific activities by SRO (controls, delivery of access to the type of activity, responsibility, sanctions)", - explained the representative of NCE RK.

"As the analysis of the current situation in our country shows, all legal acts, affecting the interests of entrepreneurs and professionals, are adopted by the state. As a result, subjects of entrepreneurial and professional activity have no incentive to improve the quality of their products, works and services. Also, there is not enough effective and excessive control on the part of the state agencies. There are more than 800 associations and unions, of which 126 are accredited by NCE, they protect interests of entrepreneurs and professionals (in the fields of construction, health care, finance, energy, agriculture, oil and gas, engineering, etc.). And now is the time to trust entrepreneurs to regulate their activities and, therefore, be responsible for the shortcomings of their colleagues to the consumers", - commented the expert of NCE RK.

According to her, the introduction of the institution of self-regulation is stipulated, above all, by the need of entrepreneurs and their awareness of the availability, judging by their business like qualities, in terms of public confidence in business without excessive interference of the state, to regulate their activities independently.

"The purpose of the law – increase the efficiency of state regulation of the economy through the introduction of the institute of self-regulation of businesses and professional activities, which provides the flexibility of the rules of conduct and the interests of market participants, the Government and consumers", - concluded Aizhan Bizhanova.