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The Board of Directors of the Financial Regulatory Authority (FRA) has issued a new regulatory decision establishing a comprehensive framework governing the registration, relocation, amendment, and closure of branches operated by companies licensed to conduct non-bank financial activities. The move aims to strengthen institutional discipline, enhance the geographical efficiency of service distribution, and ensure prudent expansion risk management to safeguard market stability and client rights.

Decision No. 44 of 2026 stipulates that non-bank financial companies may not conduct business through any premises other than their head office without obtaining prior approval from the FRA and registering the branch in the designated registry. This requirement underscores the need for supervisory review of expansion plans to ensure companies’ operational and credit readiness.

The decision clearly defines branch categories, including full-service financing branches authorized to carry out all licensed activities; marketing branches limited to promotion and document collection without granting financing or collecting payments; mobile branches operating through movable units; and seasonal branches linked to specific events or periods. The framework aims to provide operational flexibility while maintaining governance standards.

Companies are also required to establish an organizational structure for their branch networks in line with approved geographical distribution, alongside clearly defined credit decision-making policies. These may involve centralized committees at the head office, regional committees, branch-level committees, or delegated authorities based on financing segments, product types, and acceptable risk levels—striking a balance between efficiency and oversight.

The regulation outlines documentation and procedures for branch registration, including board approval, branch location and classification details, appointment of a branch manager, submission of a recent commercial registry extract, proof of premises possession, the manager’s CV, and payment of inspection fees. The FRA retains the right to conduct on-site inspections before issuing the registration certificate.

Prior FRA approval is also required for relocating, modifying, or closing any branch, with companies obligated to take measures to safeguard customer rights and regulate employee status. The Authority may impose administrative measures in case of non-compliance.

Additional requirements apply to mobile and seasonal branches, including operational plans, mechanisms for safeguarding and transferring customer documents within specified timeframes, vehicle licensing and insurance, and GPS tracking systems to monitor mobile branch movements.

Existing non-bank financial companies must regularize their status within six months from the regulation’s effective date, which comes into force the day after its publication in the Official Gazette and on the FRA’s website.