Ulaanbaatar
Regulation takes effect on assessing brokerage firms’ capacity to pay
EconomyUlaanbaatar /MONTSAME/ On January 1, 2016, the regulation on assessing and monitoring the capacity to pay of underwriter and brokerage firms came into force. The Financial Regulatory Commission has issued this regulation in order to protect the investors and clients and ensure transparency and fair market.
According to the regulation, equity ratio of brokerage firms must be 100 or more. As for current assets, those must occupy more than 70 percent.
In addition, guidelines on custodian bank report took effect on the first day of this year. First semiannual reports must be submitted within July 20, and annual reports – within February 10 of next year.
The Stock Exchange reduced its service fees, in accordance with the 2016-2019 medium-term strategy, in order to activate the market.
