How, in practice, the law "On self-regulation” is currently implemented"?
With the entry into force in May 2016 of the Law of the Republic of Kazakhstan "On self-regulation" began a new stage in the development of economic relations, in which the state through deregulation allows business entities and their associations to develop their own respective areas of entrepreneurship.

Thus, self-regulation is becoming one of the most effective tools for the deregulation of socio-economic relations.
The law defines two types of self-regulation: self-regulation based on voluntary membership (participation) and self-regulation based on mandatory membership (participation) in the business or professional activities.

Self-regulation based on mandatory membership (participation), is established on the basis of the legislation of the Republic of Kazakhstan in the sphere of activities associated with the implementation of public functions or the need to delegate certain functions performed by public authorities.
The primary functions of the self-regulating organizations will be development and approval of the rules and standards, required for the members (participants) of the SRO, monitoring over compliance by members of the SRO of these rules and standards, as well as the conditions of membership (participation) in the SRO.

And how, the law "On self-regulation" is currently implemented in practice?

In accordance with the 97^th Step of the Plan of the nation - 100 concrete steps, the Government of the Republic of Kazakhstan with direct participation NCE RK "Atameken" conducts the reform on the transfer of the functions of state bodies to the competitive environment and to self-regulatory organizations.

In 2016, public authorities in conjunction with the National Chamber of Entrepreneurs of Kazakhstan "Atameken" conducted regulatory impact analysis on the selected functions for their transfer to self-regulating organizations.
As a result, there were revealed several potential areas for the introduction of self-regulation based on mandatory membership (participation) in the field of business or professional activities. These are evaluation, audit activities and the activities of environmental auditors.

Currently, an agreement for the transfer of functions to the self-regulation both from the side of regulatory state authority and from the business environment has been achieved only for a group of functions, regulating the activities of environmental auditors.

Based on the results of the work carried out by transferring the functions of state bodies to the competitive environment and to self-regulatory organizations, in 2016 the following problems become priorities.

Firstly, the lack of interest on the side of the public authorities to transfer their functions to the self-regulation.
Traditional methods of implementation of the state policy, reluctance to change a well-established model of regulation, fear of the loss of state control - all these creates barriers and puts blocks on the path of self-development in Kazakhstan.

Despite the obvious signs of self-regulation in some areas, and successful international experience, individual regulators ignore the evolutionary development of SRO in these areas.
It should be noted that according to international best practice, the establishment of self-regulation in various spheres of business takes place in different ways: where a self-regulatory organization is formed on the basis of already existing associations, somewhere – they have already been created and continue to be created anew.

The most successful and effective self-regulation develops in those areas, in which the level of legal culture of market participants themselves is relatively high. In Kazakhstan, auditing activities can be referred to such area in the first place.
However, it should be stated that they reach a kind of "consensus" between self-regulation and government regulation at the moment. The state still can’t determine the limits of its intervention in the socio-economic sphere.

Having defined and legally establishing self-regulation as one of the most effective mechanisms for the development of business and professional community, today the public authorities in most cases are not ready for effective dialogue with representatives of the business community.
Second, the platform for the successful introduction of self-regulation based on mandatory membership (participation), could be its creation on the basis of voluntary self-regulatory organizations.

Such an approach, in our opinion, is the best in the period of formation of self-regulation institute in Kazakhstan.
In this case, the state must provide appropriate support for self-regulatory organizations, to encourage their formation process in the early stages.
Thirdly, public authorities must be on an annual basis carry out "release" of its functions to the market to find potential suppliers, competent to their quality and more efficient implementation, including from an economic point of view.

The solution of these and other issues is of particular relevance in light of the realization of the Address of the President of Kazakhstan Nursultan Nazarbayev to the people of Kazakhstan dated by 31^st of January 2017 "Third Modernization of Kazakhstan: global competitiveness", where the second major priority is fundamental improvement and expansion of the business environment, including through deregulation.

At the same time, as it was noted by the head of state, "the existing regulatory burden on business is incompatible with the task of creating a new growth model".

 Today, the state faces new challenges to ensure the economic growth above the global average and steady development of Kazakhstan among 30 advanced countries.
"Reset" of the market economy determines the new requirements for the principles of doing business, and government regulation.

Thus, in line with the adopted policy on deregulation of economy, self-regulation of business and professional environment is becoming one of the tools that could reduce state control.
It should be noted that self-regulation is closely linked with the state regulation, acting within its framework, together, in concert, or completely independently, the rules governing self-regulation, complement the norms on state regulation.

In this regard, there is a need at the legislative level to expand the opportunities for self-development, and the role of the state is to support the SROs, to provide a large number of government functions to the market.
In turn, the business entities themselves should be interested in reducing the excessive pressure on state through different types of controls, by quality self-regulation of the respective sphere, including by identifying unscrupulous market participants and establishment of more stringent professional requirements and standards.