A) This regulation aims to organize investment funds, register them, offer their units, manage them, operate them, and supervise all activities related to them in the Kingdom.

B) This regulation does not prejudice the provisions of the law or its executive regulations, including the provisions contained in the Market Conduct Regulation, the Financial Market Institutions Regulation, the Securities Business Regulation, and the rules governing special purpose entities.

• A) The term "Law" wherever mentioned in this Regulation meansCapital Market Lawissued by Royal Decree No. M/30 dated 2/6/1424 AH.

• B) The words and phrases mentioned in this Regulation shall have the meanings assigned to them in the Law and in the glossary of terms used in the regulations and rules of the Capital Market Authority, unless the context requires otherwise.

A) Any person wishing to offer investment fund units in the Kingdom must comply with the provisions of this Regulation and the provisions contained in the rules governing special purpose entities (where applicable).

B) Any fund manager, fund operator, custodian, distributor, market maker, advisor, and any member of the boards of directors of investment funds in the Kingdom must comply with the provisions of this Regulation and the provisions contained in the rules governing special purpose entities (where applicable).

The Authority has the power to exempt any person subject to this Regulation from the application of any of its provisions, in whole or in part, based on a request received from them or on its own initiative.

The authority shall impose a financial fee on the fund manager and the distributor as determined by it.

Any person subject to the provisions of this Regulation has the right to submit a grievance to the Committee regarding any decision or action taken by the Authority in accordance with the provisions of this Regulation.

The provisions of this chapter apply to public funds and private funds.

• A) The fund manager must be a licensed capital market institution authorized to practice investment management activities and operate funds or investment management activities.

• B) If the fund manager is licensed to practice investment management activities without operating funds, it must appoint a licensed capital market institution authorized to practice investment management activities and operate funds to operate the investment funds it manages.

• C) The capital market institution appointed pursuant to paragraph (B) of this article may act as the custodian for the related fund.

• D) The capital market institution appointed pursuant to paragraph (B) of this article shall be responsible for the fund's compliance with the provisions of the Capital Market Law and its executive regulations.

• E) Notwithstanding the provisions of paragraph (A) of this article, the manager of a private real estate investment fund must be a licensed capital market institution authorized to practice investment management activities and operate funds.