Regulatory Alerts2018-01-01
Decision No. 195 of 2018 of the Capital Market Authority Board of Directors on Rules for Suspension, Liquidation, Merger, or Acquisition of Licensed Financial Leasing and Factoring Companies
The Capital Market Authority Board of Directors issued Decision No. 195 of 2018 to establish mandatory regulatory procedures for licensed financial leasing and factoring companies seeking to suspend operations, liquidate, merge, or acquire shares. The regulation requires prior approval for all such transactions, detailing specific application submissions, documentation requirements, and maximum suspension periods, while mandating that merged entities hold valid licenses and that shareholder and customer rights remain protected. Applications will be reviewed within sixty days based on competition, market stability, and stakeholder impact, with residual liquidation and merger matters governed by the existing Joint Stock Companies Law.
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