ArabFinance: The Financial Regulatory Authority (FRA) has issued a new regulation requiring non-banking financial institutions to obtain the FRA’s prior approval before conducting due diligences, according to a statement published on February 20th.
The new regulation dictates investors seeking to acquire stakes in a non-banking financial services company to obtain an approval from the FRA before having access to the company’s internal documents or data, the statement revealed.
The FRA will set up two new dispute resolution committees for non-bank financial services companies.
The new committees will settle conflicts between companies and their clients, including complaints within companies working in securities and issues occurred in companies working in the non-banking financial sector.
Moreover, the FRA’s new regulation stipulates that the new committees shall make a decision regarding disputes referred to them within one month and notify the concerned parties within 15 days of issuing their decision.
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