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Business will be able to regulate itself

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The law "On the self-regulation" was presented at the National Chamber of Entrepreneurs "Atameken"

The document was developed by the Ministry of National Economy and NCE RK "Atameken participated in all the processes of the work on the draft law. On 12th of November 2015 the law was signed, it comes into force in May of this year.

Presenting the law on "self-regulation", the representative of NCE RK "Atameken" Aizhan Bizhanova noted that it is "a new institution, in which entrepreneurs must prove himself, show their efficiency, effectiveness, how they can self regulate their activities".

In her opinion, it would be a big plus not only for the state but also for consumers, waiting for high quality, professional services and pre-trial settlement of conflicts.

"The law is a revolutionary one, as it provides the establishment of trustful relations between the state and the private businesses. The evaluation of the effectiveness of such relations can be proved only in practice after a while, because all over the world this institute developed in an evolutionary way upon readiness of entrepreneurs, without undue interference of the State, to regulate their activities independently. That is the first legal institution, which can’t be developed and implemented without the initiative of the business community", - commented Aizhan Bizhanova.

In what way SRO differ from associations? As it was noted by the expert of NCE RK, regardless of the type of self-regulation, the membership in a SRO involves bigger commitments of professional or business entities, including one to consumers and third parties, which is the main characteristic that differs them from the existing associations.

Can a public association create a self-regulating organization? Answering this question, Aizhan Bizhanova noted that the Law "On self-regulation" provides two forms of non-profit organizations: an association (union) or other form of an non-profit organization established by the laws of the Republic of Kazakhstan. "At the same time during the conduction of the analysis of regulatory impact will be analyzed the whole sphere of entrepreneurial or professional activity, including the presence of other associations.

She added that the law provides for two types of self-regulation - compulsory and voluntary self-regulation. "We have introduced some incentives for voluntary self-regulation, such as the reduction of inspections, that is a business entity, which is a voluntary member of a SRO (self-regulatory organization) undergoes less inspections", - said Aizhan Bizhanova.

She noted that all depends on the kind of self-regulation. "If we have a mandatory self-regulation, then the state will no longer audit private entrepreneurs. If it is a voluntary self-regulation, then the number of audits will be reduced. If the subject of the market is a member of the voluntary SRO (self-regulatory organization), it will undergo less inspections. That is in contrast to the mandatory SRO, where the control is terminated, the state ceases to audit subjects of the market, thus self-regulatory organization exercises entire control, the model of a voluntary SRO - control over the subjects of the market is maintained, while at the same time, it is reduced in the frequency", - explained the representative of NCE RK.

Aizhan Bizhanova also noted that since the entry into force of the law "On self-regulation" since May 2016, self-regulatory organizations are empowered to exercise control over the activities of the professional enterprises.

"That is the state will transfer these functions to a self-regulatory organization, which will control the subjects of the market itself - its members. The state retains control over the self-regulatory organization", - concluded the representative of NCE.

As it was noted by Aizhan Bizhanova if an industry association wants to become a self-regulating organization, then it toughens the requirements for its participants. "For example, in order to ensure property accountability. That is, it will be responsible for the shortcomings of works and services of its direct members. Moreover, all market entities of a particular industry, if there is a law that states that the relevant industry has to be self-regulated, then it’s players are obliged to become members of the self-regulatory organization", - summarized Aizhan Bizhanova.


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