Regulatory Alerts2018-01-01
Board of Directors Decision No. (39) of 2018 Regarding the Regulations for Establishing a Research Unit for Licensed Securities Brokerage Companies
The Financial Regulatory Authority (FRA) issued Board Decision No. (39) of 2018 to establish comprehensive regulations for licensed securities brokerage companies wishing to create independent research units. The directive mandates strict operational, ethical, and disclosure standards for research personnel and reports, including mandatory independence, conflict-of-interest management, and clear separation between brokerage and research service fees. Companies with existing approved research units must align their internal controls and practices with these new valuation and transparency requirements by 30 September 2018.
Share