OREANDA-NEWS. July 07, 2011. Financial company REAL-INVEST.kz (hereinafter - the Company) with regard to decision #21 taken by the Committee Agency on Regulation and Supervision of Financial Market and Financial Organizations of the National Bank of the Republic of Kazakhstan (FSC) on June 20, 2011 on stripping the Chairman of Management Board E. Vassilyeva of her duties, deems necessary to make the following statement, reported the press-centre of KASE.

During the period from January 12, 2011 to February 24, 2011 the Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations (FSA) conducted a regular check of the Company's operations. As a result some facts of incompliance of the Company's activities with the legislation of the Republic of Kazakhstan  were detected. On some episodes the Company was made pay administrative fines, which were settled in time and in full. The major part of incompliance detected was corrected before the check was completed. According to the procedure, the company had drawn up an action plan for removal of faults and sent it to the authorized body for approval. During meetings with E. Bakhmutova, Chairman of FSA, all necessary clarification were provided regarding faults committed, measures for bringing the company's operations in full compliance with the legislation of the Republic of Kazakhstan  were agreed upon.

With the above-mentioned in mind, the Committee's decision on stripping the Chairman of Management Board, E. Vassilyeva, of her duties, was absolutely unexpected for the company and its shareholders.

The Company thought and does so now, that the major part of the faults detected was either of technical nature or was a consequence of available misunderstandings regarding interpretation of the current legislation. For example, non-notification of the Company's shareholders of a forthcoming general shareholders meeting in 2005 was quoted as of one of "grave" violations. Another one was non-payment by the company of subsidiaries' registered capital, as the    auditing group insisted, although there is no such requirement in the laws. Apart from that, one of key breaches was making of transactions in international markets in accordance with regulations of respective trading floors. For example, the Company used to think that if the London Stock Exchange (LSE) required T + 3 settlements, and respectively, allowed to make deals before delivery of securities and money on previous transactions was complete, the company as broker, should not prevent its clients from concluding similar deals. As it turned out, deals concluded at LSE had to be made in strict accordance with the laws of the Republic of Kazakhstan on securities market, prohibiting selling of shares before their physical appearance in the account. There also were faults like non-compliance with the order of consideration of loan applications. And it should be clarified that the Company had received only 3 or 4 loan applications during the time it held the license.

The Company's Board of Directors has scrutinized all documents concerning the checking. As a result, no action from the management or Mrs. Vassilyeva, in person, which would in any way worsen the Company's financial position or infringe rights or interests of client, has been detected. The Board of Directors does not know anything as to on which grounds the Committee took a decision to strip E. Vassilyeva of her duties, or how it detected incompliance of Mrs. Vassilyeva with qualification requirements. In the days to come, a request will be sent to the Committee asking for necessary explanations. There is hope that the issue of stripping Vassilyeva of her duties will be studied in detail and as a result a justified and objective decision will be made.

The Company's shareholders, the Board of Directors and Management Board express their confidence that the Committee's decision will in no way negatively affect the Company's operations, its financial position and implementation of goals set for the next years. As before, we see our mission in implementing of the task N. Nazarbayev, President of the Republic of Kazakhstan  has set with regard to increasing the investment literacy of the population, attracting our citizens to the stock market. In the near time the Company is going to announce a set of innovative measures aimed at implementing that task.

And as far possible faults are concerned, the Company always believes that only who does nothing is guaranteed from them. We hope for mutual understanding between all government bodies in emerging disputes.