Temporary procedure for registration, control of closed bond-debts issued by non-bank financial institutions approvedEconomy
Ulaanbaatar /MONTSAME/. At a regular meeting of the Financial Regulatory Commission (FRC) on 28 April, a total of 27 issues were discussed.
Although the FRC is still under quarantine - due to the COVID-19 pandemic - the Commission continues to hold regular meetings online to address sector-related issues and make related decisions in a timely manner. The ‘Temporary procedure for registration and control of closed bond-debts issued by non-bank financial institutions’ was approved at the FRC’s latest regular meeting. The MNT 10 trillion comprehensive plan - to protect health and revitalize the economy - was approved by Government Resolution No. 42 of 2021.
The FRC developed and the Regulation, to use credit resources as intended, to control spending, and to prevent any form of placement of bond debts within the non-bank financial sector. With the approval of the Regulation, the sourcing of ‘Job Support Credits’ under the program is to control potential risks; such as attracting bond debts and placing them in other forms within the non-bank financial sector. At the same time, the Law on Combating Money Laundering and Terrorism Financing is improving the identification of customers, and protecting the interests of investors and customers.
There will be an opportunity to improve the information on bondholders - by regulating the open and closed bond market through integrated management - creating a unified database of government organizations, and a register of them. The FRC’s latest meeting also decided to register documents for the establishment of a private investment fund of two companies, and debt instruments offered within a closed framework. And, it was also decided to issue additional licenses to three companies, to conduct non-bank financial activities; granting credit, providing factoring services, and investing in short-term financial instruments.
Furthermore, it was decided to extend the licenses of seven savings and credit cooperatives, to allow engagement in real estate brokerage activities by three companies, and to issue licenses to six entities to be involved in dealing in dealing in precious metals and stones.
Source: The Financial Regulatory Commission