FRA states that companies will need to request and receive approval from the authority or its board before being allowed access to the company’s internal documents and data
Companies looking to invest in non-banking financial institutions will need to get prior approval from the Financial Regulatory Authority (FRA) to conduct due diligence studies according to a new regulatory decision released by the FRA yesterday.
FRA states that companies will need to request and receive approval from the authority or its board before being allowed access to the company’s internal documents and data.
According to the Regulatory Decision No. 25 of 2022, FRA’s prior approval is required to conduct due diligence examinations on companies operating in non-banking financial activities before reviewing internal information.
It will come into effect “soon,” with the FRA announcing that the regulation will immediately in effect as soon as it is published in the Official Gazette.
The decision adds a new paragraph to the text of Article 8 of the licensing controls and the rules for owning shares of companies operating in non-banking financial activities.
The FRA also announced the formation of two new dispute resolution committees in the non-banking financial sector and securities.
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The committees’ role will be to settle conflicts between companies and clients. The first committee will focus on handling complaints within companies working in securities.
The second committee will concentrate on complaints and issues raised by companies and clients in non-baking financing, including financial leasing and factoring, SME financing, and real estate financing.
