Regulatory Alerts2024-10-28
Requirement to Provide Insurance Coverage for Board Members Against Failures and Professional Errors
The Saudi Central Bank mandates that all financial institutions and financing companies under its supervision and listed on the Saudi Stock Exchange (Main Market or Nomu) must secure insurance coverage for their board members against failures and professional errors. This requirement applies effective from the circular's date and does not relieve board members of their statutory obligations or expose them to penalties for non-compliance under relevant regulations. The directive is issued pursuant to the Bank's supervisory authority under Royal Decrees M/36, M/5, and M/51 to ensure sector stability and support financial growth.
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