FMI’s consulting experience in Asia has spanned the financial sector. FMI has implemented a multitude of donor-funded projects focusing on capital markets, banking, NBFI, securities markets, insurance, pensions, and microfinance.
Perhaps best known for its work in Central Asia, FMI has been actively involved in the region since 1994. FMI first worked with USAID, the Government of Kazakhstan, and Kazakhstan’s newly formed Securities Commission to develop a sound, well-regulated securities market. Later, FMI assisted in the development of Kazakhstan’s non-bank financial institutions (NBFIs). FMI has since worked throughout the region on USAID and ADB capital market development initiatives and legal and regulatory reform programs.
FMI is especially proud of its financial crisis response work that it developed in the wake of Asian Financial Crisis. FMI conducted an emergency review of Thailand’s pension and insurance industry for the Asian Development Bank (ADB). The review was instrumental in assisting the Government of Thailand implement reform measures to mitigate the effects of the crisis on Thailand’s pension and insurance industry. FMI continues to implement financial crisis response initiatives in the aftermath of the current global economic crisis.
FMI has also been actively involved in private sector consulting in India. FMI is the primary consultant to the Financial Technologies Group of India (FT), representing the Multi Commodity Exchange of India (MCX), the largest commodity exchange in India, and the Singapore Mercantile Exchange (SMX), FT’s newest state-of-the art trading platform.
In addition to its private sector work, FMI implemented a 2-year program to strengthen the regulation and supervisory framework for commodity futures markets in India, working primarily with the futures market regulator and leading Indian commodity exchanges to develop the legal, policy, regulatory, and operational environment necessary for promoting a vibrant and safe commodity futures market in India. This Project led to significant improvements in India’s commodity futures markets, and sharp increases in the growth of India’s agricultural sector. Additionally, FMI has written extensively on India’s financial sector, including various articles on the development of India’s commodity and securities markets and the Roadmap: Commodity Futures Markets Development in India, 2005 and Forward, which is still used today as a guide for Indian regulators and policymakers.
FMI is implementing the USAID-funded YouthWin through Economic Participation (YEP) Activity. YEP will drive a systemic change in how, where, and what economic skills are taught to empower poor and vulnerable youth in Indonesia. YEP’s foundational economic skills will facilitate attaining employment, succeeding in that employment, and effectively participating in the economy and financial system. The YEP implementation approach has three overall objectives: 1) create an innovative blend of market-relevant content and pedagogy that bridges the most common gaps to economic participation for poor and vulnerable youth; 2) develop effective training delivery channels across technical and vocational educational institutions to prepare poor and vulnerable youth for work in any chosen path; and 3) build cross-sector stakeholder buy-in to establish sustainable economic education of youth and “scale-up” at the district, provincial, and national level. FMI has partnered with the International Youth Foundation (IYF), Global Economic Education Alliance (GEEA), and several local partners, including Indonesia’s Securities Commission, the Otoritas Jasa Keuangan (OJK).
FMI has implemented seven multi-year projects in Kazakhstan for USAID, the ADB, and local government institutions, totaling $6 million in value. FMI’s Kazakhstan work has focused primarily on capital market development, including pension asset channeling, pension reform, NBFI capacity building, and securities market development. FMI’s achievements include legislative drafting on pension reform, development and implementation of a multi-tier pension system, and the drafting and passage of the Law on Securities and Stock Exchanges and Law on Investment Companies.
In Kyrgyzstan, FMI implemented a USAID Project on Broker-Dealer and Investment Fund Development and Corporate Governance. FMI made great strides in growing Kyrgyzstan’s nascent broker-dealer and investment funds through training on institutional self-sufficiency. FMI also achieved significant improvements in Kyrgyzstan’s investment banking and capital formation capabilities. During its Corporate Governance Program, FMI carried out extensive training and education programs on share registration, corporate reporting, and shareholder rights, in addition to drafting a new Joint Stock Company Law, and launching a share registration pilot project.
For the World Bank, FMI conducted an evaluation of Georgian health insurance legislation in order to support the development of a State Medical Insurance Company (SMIC). FMI drafted regulations governing the organization, structure, and functioning of SMIC. FMI also prepared regulatory framework legislation covering the private insurance industry in Georgia, which addressed issues such as licensing, incorporation, capitalization, patient’s rights, adverse selection, and basic terms/conditions of health care providers.
FMI conducted a comprehensive assessment of donor-funded anti-corruption initiatives in Azerbaijan, and recommended a long-term strategy for USAID’s efforts to strengthen the rule of law in the country. Additionally, FMI worked with the Baku Stock Exchange on improving the exchange’s exchange operations, strategic planning, and accounting and financial reporting.
For the ADB, FMI served as Senior Banking Consultant to restructure and resolve three conservatorship banks and provide bank supervisory advice to the Bank of Mongolia. FMI worked closely with Bank of Mongolia to help develop a restructured and viable banking system by providing advisory support to develop, and facilitate banking system reforms, and in particular, bank restructuring activities.
FMI worked with the Cinda Asset Management Corporation (CAMC) in Beijing to provide recommendations on ways to strengthen the organizational structure and institutional capabilities of CAMC and other asset management companies in China. FMI reviewed the structure of CAMC and worked with ADB staff to develop strategies for resolving CAMC’s non-performing loan acquisition and operations. FMI recommended appropriate reform measures to facilitate and introduce asset-backed securities as a means to utilize capital markets for NPL resolution
For USAID, FMI assessed the current legal/regulatory environment, macroeconomic conditions, and credit market dynamics surrounding microenterprise’s access to banking services in the Philippines. FMI evaluated the incorporation of microenterprise lending by participating banks and borrowers and worked with banks to implement micro-finance best practices.
For the ADB, FMI responded to the financial crisis in Thailand and conducted an emergency review of pension and provident funds and the insurance industry. FMI identified existing policy, regulatory, and operational constraints on pension and insurance reform development, and proposed reform measures. FMI also evaluated the potential for introducing a social security system in Thailand.
The Options Clearing Corporation is the largest clearing and settlement organization in the world for securities options products. Stratus Computer is the leading continuous processing computer manufacturer providing computers for securities exchanges throughout the world. On their behalf, FMI outlined the management consulting and training areas critical to the efficient functioning of a futures exchange, including exchange rules, governance, management, and regulation; systems to ensure financial and trading integrity; design and marketing of commodities contracts; and education and training for regulators, exchange participants, and end-users of exchange-traded instruments.