According to Article 27.2.3 of the Law on Securities Markets, the Financial Regulatory Commission approved the Resolution No. 94 of 2016. The documents states that the minimum required amount of share capital of the securities company that conducts investment advisory services shall be MNT 30.0 million, MNT 100.0 million if it conducts securities brokerage activity, MNT 200.0 million if it conducts securities dealer activity and MNT 1 billion if it conducts underwriting activity. Implementation of the Resolution started on January 1, 2017. However, few well-known securities companies still do not increase their share capital amount, do not comply with market mediation obligations and meet the FRC requirements. Therefore, the FRC restricts operations of non-compliant securities companies.

If the security companies whose operations have been restricted by FRC continue not complying with FRC requirements, the FRC warns that further steps and procedures will be taken.

For citizens and business entities it is risky to get services of such securities companies. Therefore, citizens and business entities shall check the financials of the securities company they chose and contact the FRC with questions relating to restrictions.

Source: Financial Regulatory Commission of Mongolia