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Requirement to Provide Insurance Coverage for Board Members Against Failures and Professional Errors

No: 46025671 Date(g): 28/10/2024 | Date(h): 25/4/1446 Status: In-Force

Translated Document

Based on the powers vested to the Saudi Central Bank under its law issued by Royal Decree No. (M/36) dated 11/04/1442H, the Banking Control Law issued by Royal Decree No. (M/5) dated 22/02/1386H, and the Finance Companies Control Law issued by Royal Decree No. (M/51) dated 13/08/1433H, and in light of the Central Bank’s supervisory and regulatory role over the financial institutions under its supervision, and in support of the stability and growth of the sector.

SAMA would like to inform that all financial institutions under its supervision and listed on the Saudi Stock Exchange - (TASI) Main market or (NOMU) Parallel Market - are required to provide insurance coverage for their board members against failures and professional errors. It is important to note that this insurance coverage does not exempt board members from their legal obligations or from any penalties or violations arising from non-compliance with the relevant Laws and instructions.