In a step to activate Law no. 176 of 2018 on regulating financial leasing and factoring , Dr. Mohammed Omran – FRA’s Chairman issued FRA’s BOD decision no. 163 of 2018 on the executive regulations for practicing factoring and decision no. 164 of 2018 on governance rules for companies licensed to practice financial leasing and factoring.
Dr. Omran emphasized that decision no. 163 of 2018 included all the executive regulations set for practicing factoring in terms of its fields and the services offered to the sellers of financial rights such as guarantee, consultations and collection of rights. The said decision includes the conditions that must be met in the debt, disclosure rules related to factored rights, transfer of rights and ways of being notified by these rights.
FRA’s Chairman stated that the decision included requirements of practicing factoring and insurance against payment risks as well as mechanisms of selling factoring portfolio.
Dr. Omran added that FRA’s BOD is seeking protection and striking balance among parties engaged in financial leasing and factoring. He emphasized that in order to ensure effective control over the performance of companies engaged in these activities and to achieve the principle of equality, transparency and combating corruption, FRA’s BOD issued decision no. 164 of 2018, including governance rules for companies licensed to practice the two activities.