Referring to the powers granted to (SAMA) under the Finance Companies Control Law issued by Royal Decree No. (M/51) dated 13/8/1433H, and based on Article Two of the Implementing Regulations of the Finance Companies Control Law issued by the Governor's Decision No. 2/MFC dated 14/4/1434H, which stipulates that "SAMA shall organize the Finance sector and supervise the business of the Finance Companies in accordance with the Law and the Regulation as the following: 2- Taking all actions necessary for maintaining the integrity and stability of the Finance sector and fairness of its transactions. 3- Taking all actions necessary for encouraging legitimate and fair competition among Finance Companies. 4- Issuing rules and instructions required to organize the Finance sector".
 

I would like to inform you that SAMA has decided the following:
 

First: Amendment of paragraph (2) of Article 12 of the Implementing Regulation of the Finance Companies Control Law to read as follows: "Any candidate for a Senior Management position in the Finance Company must comply with the requirements of professional eligibility and fit and proper requirements stipulated by SAMA. In particular the following: 2-He must be professionally qualified and must have at least five years of relevant experience. SAMA has the right to assess the candidate's completion of such period of experience."
 

Second: Amendment of paragraph (3) of Article 16 of the Implementing Regulation of the Finance Companies Control Law to read as follows: "No company is allowed to finance a residential real estate property in any form of finance but the real estate Finance Company".
 

third: Amendment of Article 23 of the Implementing Regulation of the Finance Companies Control Law to read as follow: "The Finance Company shall obtain from SAMA a non-objection letter prior to the launch of any financial products or amendment of any existing products directed to individuals or beneficiaries of microfinance".
 

Fourth: Amendment of paragraph (3) of Article 36 of the Implementing Regulation of the Finance Companies Control Law to read as follows: "Recruitment of non-Saudis in the Finance Company shall be limited to jobs that require expertise not available in the Saudi labor market. In all cases, the Finance Company must obtain a non-objection letter from SAMA before appointing any non-Saudi employee in supervision departments provided that the Company has proved the lack of Saudis for the vacant position".
 

Fifth: Amendment of paragraph (1) of Article 54 of the Implementing Regulation of the Finance Companies Control Law to read as follows: "The aggregate finance amount offered by a Finance Company shall not exceed five times the capital and reserves for Finance Companies carrying out real estate finance activities and three times the capital and reserves for Finance Companies carrying out other finance activities, unless a non-objection letter from SAMA is obtained".
 

Sixth: Amendment of paragraph (2) of Article 54 of the Implementing Regulation of the Finance Companies Control Law to read as follows: "SAMA may increase the limit on the aggregate finance amount offered by a Finance Company to the extent it deems appropriate, taking into account the financial position of the Finance Company, its performance and the market conditions".
 

Seventh: Amendment of paragraph (2) of Article 60 of the Implementing Regulation of the Finance Companies Control Law to read as follows: "All collateral must be enforceable and capable of valuation in order to be acceptable. Personal guarantees must be evaluated based on the net assets and/or net earning of the guarantor".
 

Eighth: Amendment of paragraph (2) of Article 67 of the Implementing Regulation of the Finance Companies Control Law to read as follows: "The Finance Company may not dispose finance assets or rights arising therefrom in any form except in accordance with the rules issued by SAMA in this regard".
 

Ninth: Add an article in the final provisions section stating that: "Compliance with Articles (78, 79, 81, 82, 83 and 84) of the Implementing Regulation of the Finance Companies Control Law is optional when dealing with small, medium and large enterprises".
 

Tenth: Amendment of paragraph (7-4) of the Rules Governing disposal of Finance Assets or Their Contractual Rights to read as follows:" SAMA may exclude some transactions of disposal of finance assets or their contractual rights from some of terms set out in this paragraph".