Regulatory Alerts2019-01-01
Board of Directors Resolution No. (90) of 2019 Regarding the Interpretation of Article Five of Board of Directors Resolution No. (66) of 2009
The Financial Regulatory Authority issued Resolution No. (90) of 2019 to formally interpret Article Five of its 2009 Resolution regarding the calculation of the Development Fee for holding companies with supervised subsidiaries. The directive mandates that revenues from supervised subsidiaries be excluded from the holding company's consolidated income statement when calculating the fee, with specific proportional payment rules applied based on whether subsidiaries are fully or partially supervised. It further clarifies that revenue calculations must align with the company's core business purpose, explicitly excluding nominal profits, provision reversals, depreciation adjustments, foreign exchange fluctuations, and deferred taxes.
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