Referring to Article 69 of the Implementing Regulations of the Finance Companies Control Law, which stipulates that "The Finance Company must obtain a non-objecting letter from SAMA before appointing persons in the following functions and tasks:1-Membership of the Board and its committees.2-Managing director, chief executive officer, general manager, their designees, financial manager and directors of the key departments, or their designees .3-Managers of control functions, such as internal audit, risk management and compliance, or their designees." Without prejudice to the requirements for appointing to leadership positions in financial institutions and suitability model under SAMA’s supervision, as issued by SAMA’s Circular No. 341000115396 dated 25/09/1434H, the Cyber Security Framework in the Financial Sector issued under Circular No. 381000091275 dated 28/08/1438H, and Circular No. 391000083333 dated 26/07/1439H regarding Customer Care Department Establishment in Finance Companies . Based on the observed differences in practices related to determining the key department directors in finance companies or their representatives, which require prior approval from SAMA before their appointment.

SAMA would like to clarify that "key department directors or their representatives," as mentioned in the Implementing Regulations of the Finance Companies Control Law, refers to the managers of the following functions and their equivalents or representatives: Credit Manager, Operations Manager, and Anti-Money Laundering Manager (if separate from the Compliance Manager). For other function managers linked to the CEO, other than the above-mentioned roles, it is sufficient to notify SAMA upon appointment or resignation.