The Financial Regulatory Authority (FRA) has issued a new regulatory decision establishing a comprehensive framework for the registration, transfer, amendment, and closure of branches of companies licensed for non-banking financial activities. The decision aims to reinforce institutional discipline, improve geographical efficiency of service delivery, and manage expansion risks to safeguard market stability and protect clients' rights.
The Financial Regulatory Authority (FRA) has announced Decision No. 44 of 2026, which prohibits non-banking finance companies from conducting activities from any premises other than their registered head office without prior FRA approval and branch registration in the official registry. This provision emphasizes the need for supervisory scrutiny of expansion plans to ensure operational, administrative, and credit readiness.
The decision outlines four categories of permitted branches: financing branches authorized for the full scope of licensed activities; marketing branches limited to promotional activities and document collection without granting finance or receiving installments; mobile branches operating through movable units; and seasonal branches set up for specific events or defined periods. These classifications aim to balance operational flexibility with sound governance standards.
Companies must adopt an organizational structure for branch networks that reflects approved geographical distribution and establish clear credit decision-making frameworks—whether through central committees at the head office, regional committees, branch-level committees, or delegated authorities segmented by products, financing size, and risk thresholds—to maintain efficiency and oversight.
For branch registration, required documentation includes board approval; identification of the branch's location, classification, and manager; an up-to-date commercial registry extract; proof of legal tenure of the premises; the branch manager's curriculum vitae; and payment of the inspection fee. The FRA reserves the right to conduct on-site inspections before issuing a registration certificate.
Prior approval is mandatory for transferring, amending, or closing any branch, with measures to protect clients' rights and regularize employee status. For mobile and seasonal branches, obligations include detailed operating plans; secure handling and timely transfer of client documents; vehicle licensing and insurance; and tracking systems for effective oversight.
Existing companies have up to six months from the decision's effective date to regularize their branches under the new rules. The decision takes effect the day after its publication in Al-Waqa’i’ Al-Masriya and on the FRA's official website.