A. BACKGROUND 

Mongolia has received a credit from the International Development Association (IDA) for the Strengthening Fiscal and Financial Stability Project (SFFSP). The Objective of the SFFS Project is to contribute to the Government of Mongolia’s efforts to strengthen fiscal and financial stability and improve the quality of expenditure. The project is designed into five components: (I) Strengthening Macroeconomic and Fiscal Management; (II) Improving the Efficiency of Public Financial Management; (III) Enhancing Financial Sector Stability; (IV) Strengthening the Social Protection System; (V) Project Management and Monitoring. The objectives are to: Strengthening fiscal responsibility and implementing relevant policy measures, improving fiscal discipline, strengthening the resiliency of the banking system, improving public expenditure quality in social protection, providing support for Project implementation, coordination, monitoring and evaluation, including, inter alia, audit arrangements, reporting requirements, procurement and financial management activities respectively. For more details, please refer to the Project Appraisal Document Report No. PAD2269.

Even though the legal and regulatory framework is developed, and basic infrastructure and capital markets’ basic instruments such as equity, government bonds and corporate bonds are in the markets since 1991, the last 28 years of capital market’s development was unsatisfactory, and it needs to be developed further. Therefore, Mongolian capital market is still under development and securities market legislation and its enforcement should be further strengthened. 

The law of Investment fund was approved by the Parliament of Mongolia in 2013 and related regulations were also approved thereafter. However, poor and lack of infrastructure of mutual funds has been causing a fall in secondary market, though securities had successfully traded in the primary market, and triggering imbalances in supply and demand. Currently, only one mutual fund operates in Mongolia. It states that the Government needs to improve mutual funds related legal environment and formulate appropriate policies for supporting mutual funds market development.  

Moreover, the Government of Mongolia has approved “Financial Sector Development Plan 2025” by Resolution #299, dated on October 2017. The main objective of the plan is to promote sustainable growth of the financial sector and to create favorable legal and regulatory framework for balanced financial sectors. Objective 2.2.2 of Policy Objectives and Measures to Implement Financial Sector Development Plan 2025 states that “improve oversight of investment funds and investment management companies, improve product quality in the stock markets, increase product diversification, and improve investor protection systems.” 

Therefore, in order to implement the policies and to encourage the development of capital markets and mutual funds, the Ministry of Finance (MOF) is seeking to hire a national individual consultant to prepare recommendations for developing mutual funds market and its services. The assignment will be closely supervised by MOF throughout the period of the consultancy service and in addition, the consultant is expected to coordinate the work with the Financial Regulatory Committee and other related organizations. 

B. OBJECTIVES OF THE ASSIGNMENT 

The main objective of the National Individual Consultant is to assist the Financial Markets and Insurance Division (FMID) of Financial Policy Department of Ministry of Finance (MOF) for conducting research on international good practices of developing and supporting mutual funds market and its services. 

C. SCOPE OF WORK

The consultant shall carry out the following tasks, but not limited to:

I. Conducting research for developing mutual funds market and survey of mutual funds stakeholders and prepare recommendation:

1. Conduct research on international best policies and practices of developing mutual funds market and its services. 

2. Organize meeting with different mutual funds stakeholders and conduct survey to identify challenges and issues.  

3. Prepare recommendation on based on findings of international best policies/practices and stakeholder survey.

II. Mutual funds legal environment analysis and recommendation: 

1. Develop and make recommendations for necessary changes (particularly improving the regulatory environment in the oversight system for mutual funds) in the legal environment of mutual funds, based on the comparison of the best legal environment practices of other countries. 

III. Formulating development model for mutual funds and its services:

1. Formulate a model for developing mutual funds market and make recommendations to the stakeholders.

IV. Recommendation on Institutional arrangement for FMID

1. To provide advice and support the FMID with issues related to financial markets throughout the consultancy service.

2. Undertake such other tasks including coordination of other activities relating to the assignment as reasonably requested and/or assigned by the Director of Financial Policy Department and the Head of Financial Markets and Insurance Division.

D. DELIVERABLES

The Consultant shall provide the following deliverables regarding the aspect of this assignment:

I. Research findings of best international policies and practices of developing mutual funds market and its services.

II. Stakeholder survey report of identifying challenges and issues of mutual funds participants.     

III. Mutual funds legal environment analytical report and recommendation, which offers necessary changes.

IV. Provide development model for mutual funds and its services.

V. A final completion report on developing mutual funds market and its service.   

E. CONSULTANT’S QUALIFICATIONS/ SELECTION CRITERIA

• Education: A suitable candidate should have a bachelor’s degree (or higher) from an accredited university and in the fields of Finance, Economics, Investment and Public Policy. Additional academic or professional background on specializing the capital markets would be highly preferable. 

• Experience: Incumbent should have at least 8 years of relevant professional experience with the skill of developing legislation, conducting financial and economic analysis; and an excellent understanding of Mongolian capital market’s current condition, and its challenges, laws, and regulations; experience in consulting in capital markets; 

• Language skills: Fluent written and spoken skills in English and Mongolian;

• Other skills:

a. Excellent skills in research, facilitation of workshops, and consultations;

b. With excellent skills and abilities to function effectively and collaboratively in a team environment;

c. Be proficient in PC based applications such as Word, Excel and data management, and have excellent web research and navigation skills;

F. SUPERVISION AND REPORTING 

The consultant will report directly to the director of FMID of MOF. The senior specialist on financial market tasks in collaboration with head of the FMID will provide input to the evaluation of the consultant’s performance.

G. CONTRACT DURATION 

The consultant is expected to commence working effective from June 2021. The duration of the assignment is 8 months.

H. PAYMENT SCHEDULE

• 30% of the contract amount will be paid upon successful completion of the deliverable (i) stated in the TOR conditional on the Client’s approval; 

• 20% of the contract amount will be paid upon successful completion of the deliverable (ii) stated in the ToR conditional on the Client’s approval; 

• 30% of the contract amount will be paid upon successful completion of the deliverable (iii) stated in the ToR conditional on the Client’s approval; and

• 20% of the contract amount will be paid upon successful completion of the deliverable (iv,v) stated in the ToR conditional on the Client’s approval. 

I. INSTITUTIONAL ARRANGEMENTS

The relevant counter specialist of FMID shall provide necessary data and information to the consultant for performing the assignment. The MOF will provide office space with furniture, internet access, computer, and printers.

If you possess the above qualifications, please submit following documents via email to procurement@sffs.mn:

1. Cover letter indicating why she/he considers her/himself suitable for the position.

2. Detailed CV highlighting relevant skills/experience.

3. Copy of diplomas or certificates; and,

4. Two (2) reference letters from previous last two employers no later than 15:00, June 17, 2021.

The consultant will be selected in accordance with the World Bank’s Procurement Regulations for IPF Borrowers (July 2016).

The submitted documents will not be returned to the applicants. Please be noted that incomplete applications would not be considered for evaluation. Only selected candidate will be contacted.

Address for submission of Expression of Interest: Attention to Ms. Ariunaa G, Procurement Specialist, Strengthening Fiscal and Financial Stability Project, Address: Room #204, Negdsen undestnii 8/2, 4th khoroo, Chingeltei District, Ulaanbaatar, Mongolia. Tel: 70120582 or via email to: procurement@sffs.mn.

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