Financial Market Institutions | Saudi CMA Regulatory Requirements

In an effort by the Capital Market Authority to develop the financial market and based on the Capital Market Law issued by Royal Decree No. (M/30) dated 06/02/1424H, and its executive regulations, the Council of the Authority issued its decision regarding the amendment of the regulatory requirements for the financial market institutions licensed to provide advice and for applicants applying for a license to provide advice.

These amendments aim to develop the scope of providing advice in a way that serves the sector and its dealers. The amendments include the following:

1.    Exempting financial market institutions licensed to provide advice, and applicants applying for a license in providing advice, from the requirement to form a board of directors;

2.    Exempting financial market institutions that are licensed to provide advice and applicants applying for a license in advisory activity, from the requirements mentioned in paragraph (b), subparagraph (2) of Article 20 of the Financial Market Institutions Regulations, which requires the financial market institution to have a registered person for the position of a financial manager; and

3.    Exempting financial market institutions licensed to provide advice and applicants applying for a license in advisory activity, from the requirements mentioned in paragraph (d) of Article 20 of the Financial Market Institutions Regulations, which requires the CEO, the financial manager, and the compliance officer to be different persons. In addition, the compliance officer shall not perform any job that includes providing services to clients.

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Disclaimer: This publication is for informational purposes only and does not provide any legal advice.

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