Regulatory Alerts2021-01-01
Decision of the Chairman of the Financial Regulatory Authority No. 1725 of 2021 on a Factoring Contract Model for Financial Rights Arising from Margin Securities Purchase Operations
The Chairman of the Financial Regulatory Authority (FRA) issued Decision No. 1725 of 2021, approving a model factoring contract for financial rights arising from margin securities purchase operations. This decision mandates that companies engaging in factoring activities must adhere to the minimum data requirements specified in the attached model contract. The model contract details the obligations of both the factor and the broker, covering aspects such as guarantees, information disclosure, conditions for the transfer of rights, and circumstances under which the factor can recourse the broker.
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