Regulatory Alerts2022-01-01
Financial Regulatory Authority Board of Directors Resolution No. (115) of 2022
The Financial Regulatory Authority issued Resolution No. (115) of 2022 to establish the regulatory framework for securitization companies issuing tradable bonds backed by future cash flows. The resolution mandates that originators obtain a minimum BBB- credit rating, disclose audited financial statements and detailed cash flow projections in the prospectus, and maintain segregated custodian accounts for principal, interest, and surplus investments. It further defines the obligations of originators, custodians, and rating agencies to ensure bondholders' preferential rights are secured through transparent funding flows, risk mitigation measures, and annual renewals throughout the issuance period.
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