Kazakh leader moves premier to powerful insider post

Updated 25 September 2012
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Kazakh leader moves premier to powerful insider post

ASTANA: Kazakh leader Nursultan Nazarbayev yesterday moved his Prime Minister Karim Massimov to the post of presidential administration chief amid jostling over the succession in the oil-rich state.
Former First Deputy Prime Minister Serik Akhmetov was swiftly confirmed by Parliament as the new premier in the Central Asian nation, which has been ruled by Nazarbayev since before the fall of the Soviet Union.
Analysts said the rare reshuffle was the clearest indication to date of whom Nazarbayev holds in most favor, with Massimov’s new job a promotion rather than a move sideways. “The presidential administration is an institution that impacts all aspects of Kazakh life,” said political analyst Dosym Satpayev.
“Massimov had economic duties before. Now he is a political manager,” the analyst said. “He definitely does not lose from this — he only wins.” The 72-year-old Nazarbayev enjoys ultimate authority and after winning a new five-year term with 95.5 percent of the vote last year said he had the ability to rule the country for another decade.
But analysts and investors believe this centralization is a liability for the booming nation of 17 million which is on good terms with world powers and a top global supplier of energy and natural resources such as uranium.
The man known as “leader of the nation” appeared to tear up one succession plan last year by ousting his son-in-law Timur Kulibayev — husband of his daughter Dinara — from a top energy post in the wake of deadly worker strikes.
Massimov, who preferred to stay out of the public limelight and orchestrate policy from behind the scenes, was seen by some as Kulibayev’s main rival. “We all have to stay on our president’s team — that is the most important thing,” Massimov, who has been premier since 2007, told his last government meeting yesterday. “This is an important time,” he added before being formally presented to his administration by Nazarbayev.
Investors credit the 47-year-old, a quiet man who has Nazarbayev’s ear more than anyone would ever suspect, with helping raise new interest in Kazakhstan through business-friendly policies. Kazakhstan has also been credited by the World Bank with making some of the biggest strides among emerging power nations while achieving strong annual growth of 10 percent over the past decade.
Massimov replaces Aslan Musna as administration chief. An official statement said Musna — who analysts said has failed to make an impression on Kazakh political circles — was assigned a budget oversight role.
Massimov has already served at the vital natural resource ministry and worked as Kazakhstan’s trade representative to Hong Kong.

 


Britain needs ‘AI stress tests’ for financial services, lawmakers say

Updated 5 sec ago
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Britain needs ‘AI stress tests’ for financial services, lawmakers say

  • Lawmakers urge AI-specific stress tests for financial firms

LONDON: Britain’s financial watchdogs are not doing enough to stop artificial ​intelligence from harming consumers or destabilising markets, a cross-party group of lawmakers said on Tuesday, urging regulators to move away from what it called a “wait and see” approach.
In a report on AI in financial services, the Treasury Committee said the Financial Conduct Authority and the Bank of England should start running AI-specific stress tests to help firms prepare for market shocks triggered by automated systems.
The committee also called on the FCA to ‌publish detailed guidance ‌by the end of 2026 on how ‌consumer ⁠protection ​rules apply to ‌AI, and on the extent to which senior managers should be expected to understand the systems they oversee.
“Based on the evidence I’ve seen, I do not feel confident that our financial system is prepared if there was a major AI-related incident and that is worrying,” committee chair Meg Hillier said in a statement.

TECHNOLOGY CARRIES ‘SIGNIFICANT RISKS’

A race among banks to adopt agentic AI, which ⁠unlike generative AI can make decisions and take autonomous action, runs new risks for retail customers, the ‌FCA told Reuters late last year.
About three-quarters ‍of UK financial firms now use ‍AI. Companies are deploying the technology across core functions, from processing insurance claims ‍to performing credit assessments.
While the report acknowledged the benefits of AI, it warned the technology also carried “significant risks” including opaque credit decisions, the potential exclusion of vulnerable consumers through algorithmic tailoring, fraud, and the spread of unregulated financial advice through AI chatbots.
Experts ​contributing to the report also highlighted threats to financial stability, pointing to the reliance on a small group of US tech ⁠giants for AI and cloud services. Some also noted that AI-driven trading systems may amplify herding behavior in markets, risking a financial crisis in a worst-case scenario.
An FCA spokesperson said the regulator welcomed the focus on AI and would review the report. The regulator has previously indicated it does not favor AI-specific rules due to the pace of technological change.
The BoE did not respond to a request for comment.
Hillier told Reuters that increasingly sophisticated forms of generative AI were influencing financial decisions. “If something has gone wrong in the system, that could have a very big impact on the consumer,” she said.
Separately, Britain’s finance ‌ministry appointed Starling Bank CIO Harriet Rees and Lloyds Banking Group ‘s Rohit Dhawan as “AI Champions” to help steer AI adoption in financial services.