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Article (18) Regulatory Reporting and Prior Approval from the Central Bank

C 3/2023 Effective from 29/9/2023
Reporting to the Central Bank
 
18.1The financial year of the licensed Finance Company must commence on 1st January and end on the 31st of December (except in the year of formation, which commences on the registration of the Finance Company in the commercial registry and ends on the 31st of December of the next year, provided it does not exceed eighteen months).
 
18.2A Finance Company must implement all applicable International Accounting Standards/International Financial Reporting Standards and provide the Central Bank with two copies of signed audited financial statements, including external auditor reports, before 31st March every year. The Central Bank will review the financial statements and give its approval for their publication.
 
18.3A Finance Company must publish on its website or in a newspaper of broad circulation its audited annual accounts. Such publications must occur prior to 30th April of every year.
 
18.4A Finance Company must provide the Central Bank with a list of its board members and their shareholding in the Finance Company annually, as well as an annual list of shareholders with shareholdings of 5% or more.
 
18.5A Finance Company must provide the Central Bank with supervisory return forms on a regular basis, as specified by the Central Bank. For the purpose of calculating reporting requirements regarding Aggregate Capital Funds, Finance Companies must ensure that any capital increase has been validated by an external auditor.
 
18.6A Finance Company must provide the Central Bank with any statements, information or statistics regarding any specific period required at any time; these should conform to the records of the company. All information shall be considered confidential and treated on that basis.
 
Prior approval by the Central Bank
 
18.7The licensed Finance Company must strictly adhere to the following:
 
a.Not to make any changes to its name, legal form or capital without prior written approval from the Central Bank;
 
b.Not to merge or consolidate with any other person or entity, without the prior written approval of the Central Bank;
 
c.To conduct its business from independent and appropriate premises; relocation is not allowed without prior approval from the Central Bank;
 
d.Not to open any branches except after obtaining prior approval from the Central Bank. In this case, consideration shall be given to the financial position of the Finance Company and its past compliance with regulatory requirements where applicable;
 
e.Issue all correspondence and documentation in the name of the entity and duly signed by authorized persons;
 
f.Make no amendments to its memorandum and articles of association without the approval of the Central Bank;
 
g.Obtain prior approval from the Central Bank for the appointment of Senior Management;
 
h.Obtain prior approval from the Central Bank before commencing any additional activities apart from those specified in Article 10.1 of this Regulation;
 
i.Obtain prior approval from the Central Bank before commencing third party product distribution activities;
 
j.Obtain prior non-objection from the Central Bank before contracting with an Agent;
 
k.Obtain prior approval from the Central Bank before incorporating any subsidiary; and
 
l.Not to incur any encumbrance on any of its assets without prior approval from the Central Bank.
 
18.8Any changes in the Finance Company’s shareholdings of 5% or more require prior approval from the Central Bank.