Written in Mongolia and read by professionals
in over 160 countries worldwide

Wednesday, July 6, 2011

Mongolia Briefing is a magazine and daily news service about doing business in Mongolia. We cover topics relating to the Mongolian economy, the market in Mongolia, foreign direct investment and Mongolian law and tax. It is written in-house by the foreign investment professionals at Dezan Shira & Associates


The Draft Bill on the Treasury Fund has been Introduced in Mongolia

By Elena Fehrbach

Mongolia is making another step forward in the direction of establishment of their own Treasury Fund. The President of Mongolia has initiated the establishment of the Treasury Fund that should be based on the Government revenue from the mining industry. The first draft has just been discussed by the Parliament of Mongolia and on an opening remark, Mr. L.Dashdorj, the advisor to the President, stressed upon the lack of system and policy on saving of wealth for the long-term future usage by the next generation. Continue reading

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Mongolian Stock Exchange- a new securities investment vehicle in Mongolia

By Elena Fehrbach

Jan. 20 - 2013 was a very busy year for the Mongolian Stock Exchange (MSE) and resulted in a legal and structural reform being introduced to the investment community on 1 January 2014. The new Securities Market Law came into force on that day, marking a beginning of the new securities investment era in Mongolia. The adoption of the new Securities Law came straight after adoption of the revised Investment Law on 1 November 2013 that has replaced the controversial Strategic Foreign Investment Law. New regulations are targeting the attraction of the foreign investment into Mongolia by providing internationally-accepted best practices and platforms for investments.

Securities Markets Law

As the newest regulation, Securities Markets Law (SML) immediately became the major point of discussion and attention since January 1 this year. It took about 5 months to draft the Law with all the relevant regulations. The final document is a sophisticated framework introducing financial instruments and concepts which have never been practiced in Mongolia before, such as custody, differentiation between nominee and beneficial ownership, options, futures, depository receipts and warrants. Twenty-two tailored regulations have been designed for each component of the Law, such as dual listing, clearing and other relevant components. Continue reading

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Mongolia’s Policy on the Minerals Sector is Under Final Discussion

By Elena Fehrbach

Jan. 5 – The Policy on the Minerals Sector has been first introduced in July 2013 as a legal guideline on the main principles of operation in the minerals sector approved by the government. Since July, the Policy undergone a number of revisions and is now well-shaped for the final discussion by the Parliament. It should be noted, that the Policy is not an equivalent or substitute to the Minerals Law, but a leading document showing country’s direction in the minerals sector.

As for the Minerals Law, the new draft of the Law has been introduced to public approximately year ago and became a reason for a serious criticism on behalf of mining companies and potential investors. The first draft of the Law had a series of unfavorable ownership and operations conditions treated as “unacceptable” in some cases. The Government’s reaction on the criticism was a prompt promise of further work on amendments that would involve specialists from the industry involved in the minerals sector operations directly or indirectly, such as representatives of mining companies, law firms and financial institutions. Continue reading

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Mongolia Signs MoU with Securities and Future Commission of Hong Kong

By Elena Fehrbach

Representatives of the Securities and Future Commission of Hong Kong (SFCHK) visited Mongolia and signed the Memorandum of Understanding (MoU) with the Financial Regulatory Commission of Mongolia on mutual cooperation and information exchange. Hong Kong delegation was headed by Mr. Carlson Tong, Chairman of the Securities and Futures Commission and Mr. Mark Stuart, Head of Enforcement of the Commission. Continue reading

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Mongolia Revises its Investment Regulatory Framework

By Elena Fehrbach

The new Investment Law has been passed as a result of an extraordinary Parliamentary session in Ulaanbaatar. The new Investment Law will replace the Law of Mongolia on Foreign Investment and the Law on the Regulation of Foreign Investment in Business Entities Operating in Sectors of Strategic Importance.

Though the new Law has been announced as adopted, the text version of the document is not available for public yet. As reported by sources close to the matter, up to 75 amendments have been suggested for review compared to the first versions of Laws. In order to legally implement the new Law, 11 (eleven) other Laws, such as for instance, the Law on the State Registration of the Legal Entities as of 23 May 2003, should be amended. Continue reading

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Mongolian Agricultural Stock Exchange Launched

By Elena Fehrbach

Apr. 10 – Agricultural Stock Exchange has been officially launched in Mongolia on 5 April. At the beginning, the Stock Exchange will function in a testing mode trading cashmere in Sukhbaatar, Khentii and Dornod provinces of Mongolia. On an opening ceremony, O. Magnai, director of the Agency for Fair Competition and Consumer Rights of Mongolia noted, that the launch of Stock Exchange is a big step forward bringing the agricultural sector to a new level, a truly game changing point for the agricultural sector of Mongolia. Continue reading

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New Securities Law Allowing Dual Listings to be Passed in Mongolia

By Elena Fehrbach

Apr. 10 – The new draft of the Securities Law has just been introduced for the discussion at the spring session of the Parliament which started on April 5. The suggested draft has been in the process of revision for more than 1 year and is expected to become a game- change regulation allowing dual listing. Continue reading

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Bank of China is Officially Established in Ulaanbaatar

By Elena Fehrbach

Feb. 25 – Bank of China has officially opened its branch in Ulaanbaatar. The official opening ceremony took place in Ulaanbaatar and was attended by Wu Banguo, the Chairman of the Standing Committee of the National People’s Congress of China. Chinese representative was invited to visit Mongolia by Z. Enkhbold, the Speaker of the Parliament. The official establishment of Bank of China in Mongolia is aimed to strengthen and intensify the economic relations between neighbors in the most strategic sectors, such as mining, construction, infrastructure and finance. Continue reading

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Dezan Shira & Associates provide a range of services for companies looking to undertake foreign direct investment into Asia, These include corporate establishment, accounting, tax, payroll, audit and due diligence. To learn more about the firm, please contact one of our specialists at mongolia@dezshira.com, download our corporate brochure or visit at us www.dezshira.com

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