According to the resolution approved by the Chairman of the Financial Regulatory Committee, These guidelines are “Guidelines on the on-site supervision of the regulated entity of the securities market” and “Instructions for remote control of the Securities Company”.
These guidelines have been developed using the “Risk Based Inspection Guidelines” developed by the International Adviser David Whit on the World Bank’s “Trust Fund” project for the supervision of the Japanese Financial Services Agency’s regulated entities.
“Guidelines on the on-site inspection of regulated entities on the securities market” shall specify the type of inspection on-site inspection done by the Commission, taking into account the number of complaints and potential market risk. It also identifies the scope and nature of the audit and sets out the scope of the audit, how the scope of the audit is to be carried out to ensure effective verification of the audit, and the examination does not necessarily need to be an independent examination and can be done in a specific field.
In addition, detailed instructions are provided in the examination working group and the inspectors of the Committee’s guidelines, inspectors on principles, assessments and conclusions.
It is important that the those guidelines for remote control review and the on-site inspection report, the scope of the report, the date of their preparation, the elimination of detected violations and the imposition of penalties are critical important.
Source: www.frc.mn