A. BACKGROUND

Mongolia has received a credit from the International Development Association (IDA) for implementation of the Strengthening Fiscal and Financial Stability (SFFS) Project. The Financial Regulatory Commission (FRC) is a beneficiary of the Project and is implementing activities under sub-component #C4. The main objective of the Sub-component is strengthening the institutional capacity of the Commission. 

In recent years, law reform has become an increasingly demanding process, the Parliament of Mongolia approved resolution of “General directives for improving legislation of Mongolia by 2020” in January 2017. Resolution includes the Law on Legal Status of FRC to be revised by the FRC and Ministry of Finance in 2017. 

In addition, The Parliament of Mongolia also approved ‘The national program to develop Mongolia’s financial market until 2025’ in October 2017. Under the objectives:

2.1 ‘Revise state policy and legislation on securities market, improve capabilities of regulation and supervision of the regulatory authority and eliminate duplication of same function’ and 

3.1 ‘Ensure stability of insurance market in order to enhance the competitiveness in the financial market’, 

During the past 12 years, the non-banking financial sector has been developing and expanding continuously; in terms of products, services, and range of operations. This has rendered the law incompatible with the current economic context and raised the need to implement relevant changes to the legislation. In particular, there was a significant expansion for the insurance market with penetration of new products both in general and long-term insurance over the past decades since 2000 and the emerging needs of adjustments in the regulatory framework compatible (or conflict free or supports one another for the insurance market development) to the national pension scheme and private long-term life insurance and re-insurance. The General Administrative Law was approved in 2016, and the Revised Law on Infringement and amendments to the law governing the Central bank of Mongolia was approved by Parliament recently. These prompt the need for revisions to The Law on the Legal Status of the FRC and other legislation regulating the markets under the Commission’s oversight, the insurance market in particular. 

In accordance with the “National Programme to Develop Mongolia’s Financial Market until 2025”, a working group to improve the legislation for insurance market was established jointly by the Financial Regulatory Commission and the Ministry of Finance in 2018. The legislation is a package of laws including the Law on Insurance, the Law on Driver's Insurance, and the Law on Insurance Intermediaries. The FRC has recently been assigned to lead the working group to prepare drafts of the laws (amendments or revisions). 

The Law on Insurance was first enacted in 1996 and amended several times for improvements on its regulatory framework in line with the insurance market developments. However, the legislation administering the insurance market is considered to be improved within the rapid progress of present time to make it sounder and more favorable with the current market circumstances, further developments and in line with the IAIS’s core principles for insurance markets to be fair and transparent. 

B. OBJECTIVE OF THE ASSIGNMENT

The main objective of the assignment is to draft amendments (revision if appropriate) to the Law on Insurance, the Law on Driver's Insurance, and the Law on Insurance Intermediaries regulating the activities of insurance underwriters, brokers, agents and other relevant stakeholders. Prior to drafting the amendments (or revision) to the laws, the consultant will:

• Conduct relevant assessments of other papers identified in the legislation of Mongolia; 

• Prepare and introduction to, and a concept paper of, the proposed laws (amendments/revision);  

• Conduct a needs assessment for the proposed laws (amendments/revision); and 

• Complete an impact assessment of the law associated with a cost estimation; 

C. SCOPE OF THE WORK

The Consultant shall lead a team in the preparation of draft laws of insurance legislation on regulating the activities of insurance market and will be accountable for overall completion of the task. This shall be done in accordance with the Law on Legislation, and the methodology in line with the Government’s Resolution No. 59 of 2016. The work will also include an introduction to the proposed law (and concept paper), needs assessment, impact assessment and cost estimation. 

Task 1: Pre-draft (of a law/s) works (40 working days) 

1.1. Develop and present a work plan; 

1.2. Review the current legislation, relevant laws and rules regulating the market, i.e. the Law on the Legal Status of the FRC, Law on Licensing Business Activities, Law on Anti-Money Laundering and Combatting the Financing of Terrorism, and the FRC’s rules and other administrative regulations regulating the market; 

1.3  Review the IAIS’s core principles and other compliances for insurance markets developments, and prepare a recommendation on compliance with these principles and reflect accordingly in the drafts of amendments/revision; 

1.4. Hold meetings with stakeholders, including governmental and non-governmental organizations (including Mongolian Insurers Association, Association of Compulsory Insurance, Association of Insurance Brokers etc.), and representatives of insurance companies/brokers/agents; 

1.5. The draft law shall be developed in accordance with the methodology specified in Article 13 of the Law on Legislation and Resolution No. 59 of Government’s Annex 1 (of 2016) ’Develop a baseline survey of the needs and requirements of the draft law’;

1.6. The draft law shall be developed in accordance with Article 14 of the Law on Legislation and Resolution No. 59 of Government’s Annex 2 (of 2016) ‘Develop a draft concept of the draft laws’; and

1.7. A progress report (monthly basis); 

Task 2. Drafting proposed law(s) (40 working days)

2.1. Conduct an impact assessment of the proposed laws in accordance with Article 17 of the Law on Legislation of Mongolia and Resolution 59 of the Government’s Annex 3 (of 2016), ‘The methodology for conducting impact assessment of legislation’;

2.2. Estimate the cost of implementation of the proposed law in accordance with Article 18 of the Law on Legislation of Mongolia and Resolution 59 of the Government’s Annex 4 (of 2016), ‘The methodology for estimating cost of implementation of legislation’;

2.3. In accordance with the above, prepare a concept of the draft law, and in accordance with Article 16 of the Law on Legislation and the methodology specified in Resolution No. 59 of Government’s Annex 2 (of 2016), ‘Develop draft laws and legislation on insurance  and prepare a final version of the draft law in Mongolian’;

2.4. Develop suggestions for related (new) laws, amendments, and/or repeal of other laws; in connection with implementation of the proposed draft law; and

2.5. A final report; 

D. DELIVERABLES

1. A Work Plan approved by the Commission;  

2. A baseline survey on the current legal framework for the activities of insurance underwriting and brokerage, either a comprehensive survey for the set of insurance legislation for improvements under this term of reference or a separate survey for each law, along with associated recommendations; 

3. A concept of the draft laws (each law’s amendments or revision) on the regulation of activities of insurance; 

4. Draft law on the regulation of activities of insurance, (Mongolian);

5. Proposals on related new laws, amendments, and repeals (in connection with the implementation of the draft law on the regulation of insurance activities); 

6. Report on the impact assessment of the draft law(s);  

7. Cost estimation of the draft law(s); and

8. A final report; 

E. CONSULTANT’S QUALIFICATIONS AND/OR SELECTION CRITERIA

The Consultant shall satisfy the following requirements and skills:

Education: The Consultant (team leader) should have a master's degree (or preferably higher/PhD) in law (specialized in administrative law, civil law, and related fields); 

Experience: The Consultant should have at least eight (8) years’ experience as a lawyer or other respective professionals; with knowledge of methods and techniques required for drafting policy documents and legislation (preferably with evidence of previous related work); 

Language skills: The Consultant shall be in advanced level of English, adequate for preparing reports and other relevant documents; 

Work skills: 

• Extensive knowledge of the insurance market; relevant knowledge in regulation of financial market will be an asset; 

• Ability to draft laws, reports, and legal acts and legislative documents; 

• High analytical skill and research ability;

• Well-organized and ability to work independently; 

• Ability to advise others, and work collaboratively within a team environment; 

F. SUPERVISION AND REPORTING

The Consultant will report directly to the Director of the International Cooperation Department of the FRC; and work under direct day-to-day supervision of the Director of the FRC’s Department for Insurance Market.

The following reporting requirements apply:

• Inception Report: submitted to the Client within 10 working days of the contract being signed; 

• Progress Reports: monthly - once the contract has been signed – describing accomplishments and progress, and to be accompanied by the  developed materials; 

• Final Report: not later than 140 days after the contract is signed, and describing accomplishments in full, and to be accompanied by the completed version of the developed materials; 

G. CONTRACT DURATION AND PAYMENT SCHEDULE 

The duration of the consultancy will be four months, and will start in September 2021. Upon signing the contract, the selected consultant will start provision of services and will complete their duties within the period specified in the contract. In accordance with the agreement between the parties, the work specified in the terms of reference shall be completed and presented to the Client. 

Payment will be released upon satisfactory completion of all deliverables according to the following schedule: 

- Deliverables 1 – 2: 20% of total contract amount; 

- Deliverables 3 – 5: 40% of total contract amount; and

- Deliverables 6 – 8: 40% of total contract amount.

H. INSTITUTIONAL ARRANGEMENTS

The FRC will provide office space (work desk, meeting room, etc.) and assign a coordinator to work with the Consultant to facilitate the consultants work at the Commission (meetings, visits and other communications with government agencies, officials, and market players, etc.). The FRC's Department for Insurance Market will provide management and organizational support for the day-to-day work of the Consultant. 

If you possess the above qualifications, please submit the 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 17:00 PM, August 13, 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 #205, Negdsen undestnii 8/2, 4th khoroo, Chingeltei District, Ulaanbaatar, Mongolia. Tel: 70120582 or via email to: procurement@sffs.mn

70120582