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The mechanism of control and supervision will prove to be effective with self-regulation - Aizhan Bizhanova

- City of Astana
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What are the problems of development of self-regulation in Kazakhstan?

In her speech at the International Conference on Self-Regulation in Audit and Taxation, Aizhan Bizhanova, Managing Director, Director of the Department of Legislation and Development of Self-Regulation of NCE RK Atameken, elaborated on several key issues.

 A new department for the development of self-regulation, as well as a new Committee of the Presidium on self-regulation have been created at "Atameken", which will bring together representatives of all self-regulatory organizations in Kazakhstan.

"This will allow us to coordinate the activities of the SRO, to study and summarize the existing problems, to work out jointly proposals for further improvement of this institution. Unfortunately, there is no active position on the part of entrepreneurs or government agencies, and this is connected with a number of real problems requiring a solution", - believes Aizhan Bizhanova.

The speaker spoke about each problem in particular:

Firstly, it is the reluctance of state bodies to change the traditionally established model of administrative influence on business.

Secondly, the state is still unable to determine the limits of its intervention. The current legislation is excessively regulated, which does not allow entrepreneurs to regulate independently and improve;

Thirdly, there is a lack of incentive and supportive mechanisms on the part of the state for the development of voluntary self-regulation.

"To solve the problems, we propose to exclude the state control over the entrepreneur, which is a member of a SRO, to review the national legislation in the sphere of self-regulation and create conditions for the development of mutual insurance societies at the legislative level, to analyze the areas of entrepreneurship where there is excessive state regulation.

At the same time, taking into account the specifics of each state body, consider the possibility of granting legislative preferences, both financial and non-financial, that stimulate and create self-regulating organizations and participate in them. And the last to introduce the institute of the rating system in order to strengthen the role of consumer recognition of one or another SRO and their members", - said the managing director, noting that the National Chamber of Entrepreneurs can act as an independent arbitrator at first.

"Self-regulation will effectively demonstrate the mechanism of control and supervision. On the one hand, the control of the subjects of the market is carried out by the professional society itself, which ensures a regular increase in the level of auditors, as well as the improvement of standardization. On the other hand, the state body's control over the SRO's activities is toughened, due to the introduction of state measures of responsibility for the unsatisfactory work of the SRO, "explains the director.

In addition, the Director of the Department proposes to refuse from licensing, as from an inefficient mechanism of state regulation.

"For example, licensing of auditing activities was canceled in 2010 in Russia, while in 2012 Russia became a member of the WTO. Thus, there were no consequences for the audit market in the form of expansion by foreign audit organizations.

Moreover, we are currently studying the Draft Agreement on Auditing Activities on the Territory of EAEU, according to which the Member State should contribute to the creation and activities of professional associations (self-regulating organizations) of auditors", - added Bizhanova.

 


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