“Strengthening the integrated understanding of the market participants regarding investment fund operations and custodian banks” discussion has been held at the Mongol Bank Academy. Within one year and a half year period since the “Investment fund law” has been approved, FRC has approved 5 out of 19 Regulations that are to derive from the law.
Since the citizens, enterprises have strong interest to finance their business projects with short term financial resources and allocate their capital in the savings, there is a need to establish and develop long term financial structure form or collective and private investment funds.
Concerning this issue, Mrs Z.Narantuya, Chairman of the FRC opened the discussion and commented that “Together with the “Strengthening the financial sector capacity”, MON/004 project of Luxembourg, FRC is working towards to re-developing the investment fund regulations and regulatory principles to international standards and attract the budgetary and non-budgetary floating capitals into the securities market. In the future, FRC shall give a special attention to support the investment fund operations, harmonize the participants’ functions and improve the human capacity of the sector”.
FRC has approved licenses to two commercial banks in order to introduce the custodian services which shall deposit the investment fund capitals. In addition, FRC has developed custodian and investment fund accounting regulations that meet the international standards.
Source: www.frc.mn