Thursday 03 Apr
The Financial Regulatory Authority's Committee for Financial Technology in Non-Banking Activities has approved three securities brokerage firms—Tilda, Beltone, and Thndr—to operate using full-spectrum financial technology for the first time.
According to the approval of the competent committee at the Financial Regulatory Authority, Tilda Securities Trading Company and Beltone Securities Trading Company will commence their licensed brokerage activities using technology in electronic identification, verification, and authentication processes, electronic customer identification processes, electronic contracting for non-banking financial products, and electronic registration, storage, and retrieval from digital records, through Vlens, a company registered in the Authority's outsourcing companies registry.
Thndr Securities Trading Company will also operate its
licensed brokerage activities using technology in electronic identification,
verification, and authentication processes, and electronic customer identification
processes, through Valify Solutions, a company registered in the Authority's
outsourcing companies registry. The company will conduct electronic contracting
for non-banking financial products and electronic registration, storage, and
retrieval from digital records through its internal system.
This aligns with the Financial Regulatory Authority's
ongoing efforts to accelerate the pace of digitizing non-banking financial
transactions, following the Authority's issuance of legislative and regulatory
decisions in implementation of Law No. 5 of 2022 regarding regulating and
developing the use of financial technology in non-banking financial activities.
The Authority has mandated all companies wishing to use
financial technology in non-banking financial services with mechanisms and
methodologies for managing and governing technological risks, in order to
ensure their continued efficient performance of their tasks, to protect the
rights of their clients for financial stability.
The authorization of securities brokerage companies to provide services through the application of financial technology will serve to facilitate investment requisites within the stock market, thereby affording a greater number of citizens to invest in the stock exchange, particularly given the customer's ability to open an account and begin the investment journey fully digitally without the need to visit a company branch or submit any digital documents.
