a. These Regulations aim to regulate the registration, offering and management of investment

funds and associated activities in the Kingdom.

b. These Regulations shall have no prejudice to the provisions of the Capital Market Law and

its Implementing Regulations, including, the Market Conduct Regulations, the Capital

Market Intuitions Regulations, the Securities Business Regulations and the Rules for

Special Purposes Entities.

a. Any reference to the “Capital Market Law” in these Regulations shall mean the Capital

Market Law issued by Royal Decree No. M/30 dated 2/6/1424H.

b. Expressions and terms in these Regulations have the meaning which they bear in the Capital

Market Law and in the Glossary of defined terms used in the Regulations and Rules of the

Capital Market Authority, unless the context indicates otherwise.

a. A person who intends to offer units in an investment fund in the Kingdom, must comply

with these Regulations, and the provisions of the Rules for Special Purposes Entities (where

applicable).

b. A fund manager, fund operator, custodian, distributor, market maker, adviser and any

member of the fund board of an investment fund in the Kingdom must comply with these

Regulations, and the provisions of the Rules for Special Purposes Entities (where

applicable).

The Authority may waive a provision of these Regulations in whole or in part as it applies to a

person either on an application from such person to whom the relevant provisions of this Article

would otherwise apply or on the Authority’s own initiative.

The Authority may impose a fee on the fund manager and the distributor as the Authority may

prescribe.

Any person subject to these Regulations may appeal to the Committee in respect of any decision

or action that the Authority takes under these Regulations.

This Part shall apply to both public funds and private funds.

a. The fund manager must be a capital market institution licensed to carry out the activity of

managing investments and operating funds or the activity of managing investments.

b. Where the fund manager was licensed to carry out managing investments activity, without

the license to carry out operating funds activity, it must appoint a capital market institution

licensed to carry out managing investments and operating funds activity to operate the

investment funds under its management.

c. A capital market institution appointed under Paragraph (b) of this Article may be a

custodian of the relevant investment fund.

d. A capital market institution appointed under Paragraph (b) of this Article shall be

responsible for the fund’s compliance with the provisions of the Capital Market Law and

its Implementing Regulations.

e. As an exception to the provisions of Paragraph (a) of this Article, the fund manager of the

private real estate investment fund must be a capital market institution licensed to carry out

the activity of managing investments and operating funds.