Riyadh -- The Saudi Central Bank (SAMA) seeks public consultation on the draft amendments to the Finance Companies Control Law. In the interest of transparency and wider participation, SAMA invites stakeholders and the public to provide suggestions and observations on the draft by visiting the Public Consultation Platform with the National Competitiveness Center.
This regulatory function is part of SAMA's oversight role by the authority vested in SAMA, as well as its role to support the development of the finance sector and keeping pace with the growth of the finance industry around the world.
This draft aims to achieve a more comprehensive and flexible legal framework and is expected to support the stability of the finance sector while contributing to the achievements of the Kingdom Vision 2030 objectives.
The draft proposed amendments to the legal formation of companies intend to conduct finance activities; the finance companies shall still be able to carry out the financing business through the form of a joint stock company with theSaudi Central Bank power to exclude such requirement.
In addition, amendments include granting SAMA the discretion to exempt companies from the prohibition to engage in another activity other than financing, as well as the limitation related to a member of the board of directors who simultaneously works in another finance companies boards but of different activity.
Also, amendments address new provision enabling the Saudi Central Bank to waive requirements, as needed, related to financial emerging technologies.
Finally, interested participants are expected to provide their input on the draft within (30) days from this publication. Noting that all views and observations will be subject to assessment and consideration for the finalizing of this draft. The draft is available on the Public Consultation Platform with the National Competitiveness Center.