Dr. Omran: FRA ex-employees are prohibited from working in any entity subjected to the Authority’s supervision and control that is for a period of a year from the date of resignation
Dr. Omran: We are keen to avoid any act or practice that represents conflict of interest between the Authority and entities subjected to its supervision
FRA’s BOD approved, at a virtual meeting on Sunday, an amendment to the Authority’s regulation . It stipulates that FRA ex-employees must avoid involvement in bodies engaged in activities under the Authority’s supervision for one year to prevent conflict of interests.
Dr. Mohammed Omran – FRA’s Chairman says that the ban extends to former employees whose service ended with a clear or implied resignation who may look for employment at any of the entities subject to the Authority’s supervision and control. This would be valid for a period of one year from the employee’s resignation. Also, he notes that the year-long ban may be reduced to three months subject to a decision by FRA’s chairman.
FRA’s Chairman states that in accordance with the provisions of Article Six of Law No. 10 of 2009 on regulating non-banking financial markets and instruments, FRA’s BOD starts to put the regulations governing FRA’s human resources . He adds that such steps shall maintain the stability and integrity of non-banking financial markets , noting that issuing these rules shall ensure the efficiency and transparency of these markets and activities.
Dr. Omran emphasizes that since the promulgation of Law No. 10 of 2009 establishing the Financial Regulatory Authority (FRA) and assigning the process of regulating non-banking financial markets and tools – including the capital market, insurance, real estate financing, financial leasing, factoring, securitization, adding to these activities microfinance in 2014, and consumer finance activity in 2020 – the Authority has consistently endeavored to work on the safety and stability of non-banking financial markets, providing different means and systems and issuing rules that ensure the efficiency of these markets and the transparency of the activities. He adds that the legislator entrusted the Authority to take the necessary steps to achieve this, in particular direct licensing and inspection activities on entities engaged in non-banking financial activities, supervising the publication of information related to financial markets and setting competition and transparency controls in a way that protects all the rights of those dealing in non-banking financial markets.
FRA’s Chairman stresses that given the importance of the role played by the Authority in this regard, significant duties and responsibilities are imposed on its employees due to the accuracy and sensitivity of the field in which they work. Thus, FRA’s employees shall adhere to the provisions of the Authority’s Human Resources Regulations that guarantee their neutrality and avoiding conflict of interests. On the other hand, yesterday, the Authority initiated to address all entities subject to its supervision with the content of the amendment and the importance of implementing this amendment, noting that it shall be applied from the date of notification.
FRA’s Chairman also stressed that the amendment to the Authority’s Human Resources Regulations completed the objectives of decision no. (75) issued in June 2010 which prohibited any of the Authority’s employees from engaging in any professional, commercial or financial business outside the scope of their work in the Authority, whether that was paid or not.
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