MONGOLIA: FRA Introduces New Financial Products and Services Introduced to the Capital Market

Wednesday March 12 2025

The Financial Regulatory Commission (FRC) announced that key policy decisions were made to introduce new financial products and services to the capital market, creating a regulatory environment for trading certificates of deposit. As part of this initiative, the Parliament amended the Law on the Securities Market, making it possible to trade certificates of deposit, a money market instrument, and on the securities market.

Within the framework, the FRC resolved to adapt international best practices to domestic market conditions and establish a regulatory environment that supports the introduction of new financial products and services. tKey benefits of trading certificates in the securities market:

• The introduction of highly liquid certificates of deposit  will help mitigate  the risk of fund withdrawals   from the banking sector,
• Citizens and depositors can choose their preferred bank regardless of time and location,
• Depositors will have the option to trade their savings on the secondary market.

The following decisions were made at the meeting:

• granted a special license for securities brokerage activities to one company,
• registered a one company
• as a legal entity to provide asset valuation services to securities market participants granted a special license for non-bank financial loan and factoring services to one company

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