| Release Date: | 2020-08-12 |
|---|---|
| Release Tool: | Councils and commissions decisions |
| Issuance Instrument Number: | 2020-75-2 |
| Validity: | Cancelled |
| Summary: | By AI The document issued by the Capital Market Authority in Saudi Arabia addresses the Regulation of Financial Activities Sanctions in accordance with Decision No. "M" and the Capital Market Law. The regulation includes several chapters containing preliminary provisions, applicable principles, and licensing requirements. Chapter 1 includes definitions and obligations, while Chapter 2 addresses the fundamental principles. Chapter 3 focuses on licensing application procedures and license continuity, in... |
• The issuance included the following amendments:
Adding a new sub-paragraph (w) to Article 10.
Adding a paragraph at the beginning of Annex 3-1: Information and documents required for licensing and commencement of business.
Adding item (Eighth) to Annex 3-2: Notification requirements.
Amending paragraph (8) of Article 19 by adding the phrase: “…that provide robo-advisory services…”.
Adding a new paragraph (5) to sub-paragraph (b) of Article 20.
Adding a new sub-paragraph (z) to Article 33.
Amending sub-paragraph (c) of Article 43.
Adding a new sub-paragraph (8) to paragraph (7) of Annex 5-2: Requirements for service provision conditions.
Amending sub-paragraph (e), and adding a new sub-paragraph (f) to Article 55.
The amendment includes a minor change to each of the following:
1- Amending paragraph (B) of Article Nineteen of the Regulation by adding the following text:
"8)Information Technology Officer in a licensed financial market institution authorized to conduct arranging activities in the context of practicing crowdfunding activities in securities," to be effective from the date of publication.
2- Amending paragraph (D) of Article Sixty-Nine of the Regulation to read as follows:
"D. Notwithstanding the provisions of paragraph (C) of this Article, a licensed financial market institution authorized to conduct arranging activities may, in accordance with the provisions of this chapter, retain client funds received in the context of practicing crowdfunding activities in securities, provided that it meets the following additional requirements:
1- The retained client funds shall not exceed eighty million Saudi Riyals.
2- The retained retail client funds shall not exceed one hundred thousand Saudi Riyals.