REGULATION WATCH- From the Department of Common Sense: Convicted fraudsters and those with histories of regulatory violations will face extra scrutiny before being allowed to sit on the boards of companies over which the Financial Regulatory Authority (FRA) has oversight, Al Mal reports, citing regulatory changes passed by the FRA. The new provisions apply to would-be board members of listed companies as well as privately held non-banking financial institutions and stipulate that individuals convicted of felony breach of trust would be ineligible for a board set until satisfying conditions including (a) fully completing their sentences and (b) staying out of trouble for at least three years post-conviction. The rules also apply to individuals who have breached laws or regulations governing non-bank finance activities.

Background: The amendments are the latest in a wave of rule changes the FRA has been implementing to bring listing regulations in line with the new Companies Act. Among those were provisions that establish a weighted voting system that allows shareholders to vote on board members and also ask the board questions ahead of general assembly meetings.