Regulatory Alerts2018-01-01
Decision of the Board of Directors of the Financial Regulatory Authority No. (56) of 2018
The Financial Regulatory Authority (FRA) issued Decision No. (56) of 2018 to establish governance regulations for the board of directors of investment funds structured as joint stock companies. The decision mandates that fund statutes limit board membership to a maximum of seven members, including no more than three shareholders, with the remainder being independent experts, while clarifying that the chairman need not be full-time and the board may exclude executive or managing directors. Existing funds must align their board structures with these rules at their next general assembly meeting or within one year, and the FRA requires notification within five working days of any board member's departure.
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