FRA updates M&As regulations for non-bank financial firms
Updated 9/17/2024 10:30:00 AM
Arab Finance: The Financial Regulatory Authority’s (FRA) board has updated the regulations governing mergers and acquisitions (M&As) for firms operating within the non-bank financial sector, the authority stated.
This move aims to enhance the business landscape in the non-banking financial markets, promote competitiveness, speed up procedures, and prevent monopolization.
Excluding insurance and reinsurance firms, the new regulations stipulated that M&As of NBFIs only require approval from the FRA’s board in cases where the acquiring entity holds more than 10% in the target market.
Otherwise, the board's approval is not necessary for the deal to proceed, with the aim of facilitating procedures.
Under the new rules, the FRA is set to either approve or reject any merger or acquisition requests within 45 days. Approvals will be valid for six months as of notification day.
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