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On the problems, prospects and readiness of business representatives for the transition to self-regulation

On 5th of October was held a meeting of the republican public council for supporting entrepreneurship of Nur Otan party. The theme of the event was "Transfer of functions that are not relevant to the state in the sphere of entrepreneurship to a competitive environment and self-regulating organizations". The meeting was attended by the managing director of the department of legislation and development of self-regulation of NCE RK "Atameken" Aizhan Bizhanova, chairman of ROSPP of "Nur Otan" party Meiram Pshembaev, vice minister of national economy of the Republic of Kazakhstan Aybatyr Zhumagulov and representatives of state bodies. Recall that in 2016, within the framework of the implementation of the 97 Steps of the Nation Plan, the Law "On Self-Regulation" was enacted, basic campaigns for transferring state functions to the competitive environment and SROs were approved, and special platforms for the transfer of functions were created at all levels. The 4-level system implies at the first level - state bodies, the second level - Atameken, the third level - the Mazhilis of Parliament and the fourth level - the Government of the Republic of Kazakhstan.

"Within the framework of the second group of functions, 8 potential areas for the introduction of mandatory self-regulation have been identified. The results of work on the second group of functions will be presented to the commission under the Government at the end of this year", - Aizhan Bizhanova explained.

The speaker specified that "Atameken" assigned a number of functions to coordinate the work of business entities, their associations, to monitor the functions transferred to the competitive environment, and so on.

During the meeting it was discussed that separate state bodies, in violation of Article 32, delay the process of transition to full-fledged self-regulation in the spheres of advocacy and notarial activities, audit, and non-departmental complex expertise. To resolve the current situation, regulating state bodies jointly with business entities develop detailed plans for the introduction of self-regulation, in the medium term. "Despite the obvious evidence of readiness for the transition to mandatory self-regulation, the Ministry of Finance of the Republic of Kazakhstan categorically ignores the development of the institute of self-regulation and the proposal to establish a single body for external quality control of audit organizations that perform compulsory audit.

This idea is fundamentally inconsistent with state policy and international obligations, and will subsequently lead to excessive state regulation of audit activities", - the Managing Director emphasized. She also added that the current risk assessment systems have not been revised, taking into account the requirements of legislation on self-regulation. Currently, there are about 8 voluntary SROs in such areas as bookmaking, information modeling in the construction industry, fire safety, activities of environmental auditors, service companies selling railway tickets. It should be noted that "Atameken" proposes to solve the problem of the functioning of the current system of self-regulation by targeted approach, in the framework of the draft law on entrepreneurship developed with the Ministry of Education and Science of RK. The further development of the institute of self-regulation will be carried out in three main directions.

First, as part of strengthening measures to stimulate SROs, it is envisaged to create SROs based on mandatory membership only on a voluntary basis. State support measures are introduced, and the right to obtain SRO status by public associations has been established. Second, within the framework of strengthening responsibility on the issue of self-regulation, conditions are set for attracting SROs to administrative responsibility, grounds for excluding a self-regulatory organization from the Register. Third, within the framework of improving corporate governance of self-regulating organizations, basic requirements are defined. SRO members in the field of entrepreneurial activity may be individuals (valuation, legal activity), ensuring equal rights and obligations for the founders and participants of SROs, questions of membership and entry fees are regulated.

"Self-regulation is intended to become one of the tools to reduce administrative barriers, to rid the business of outdated licensing and control procedures", - Aizhan Bizhanova summed up.


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