A- The purpose of these instructions is to regulate the opening and operation of investment accounts by financial market institutions when providing any services related to trading, management, custody, or investment through crowdfunding platforms for securities; and to define the relevant supervisory and regulatory rules concerning investment accounts.

B- These instructions do not contravene the provisions of the Capital Market Law and its executive regulations, the Anti-Money Laundering Law and its executive regulations, and the Anti-Terrorism Crimes and Financing Law and its executive regulations.

A- The financial market institution must ensure that it fulfills all its obligations under the Law and its executive regulations, as well as the Anti-Money Laundering Law and its executive regulations, and the Anti-Terrorism and Financing Law and its executive regulations, before accepting any client and opening an investment account for them.

B- The financial market institution, upon accepting any client, must not provide any services related to transactions, management, custody, or investment through securities crowdfunding platforms, except after signing an investment account opening agreement with that client containing all the information stated in Article Four of these instructions and opening an investment account for them.

C- The financial market institution may rely on a third party to take due diligence measures regarding the client in accordance with the relevant provisions contained in the Anti-Money Laundering Law and its executive regulations and the Anti-Terrorism and Financing Law and its executive regulations for any person permitted by these instructions to open an investment account for them.

D- The financial market institution must verify the true relationship of clients with natural persons who open or operate investment accounts on their behalf as guardians, agents, trustees, or authorized signatories in accordance with the relevant provisions contained in the Anti-Money Laundering Law and its executive regulations and the Anti-Terrorism and Financing Law and its executive regulations.

E- In all cases where these instructions require verification of the authenticity of document copies, data, or information, the verification must be conducted using documents, data, or information from a reliable and independent source.

F- Based on the risks posed by a specific client, the financial market institution, when taking due diligence measures regarding the client, must assess whether it is necessary to review the originals of any of the documents for the purpose of verifying their authenticity.

In addition to the requirements for providing services to clients as stated in the Financial Market Institutions Regulation, the Investment Account Opening Agreement must include, at a minimum, the following:

A- The client's identification document details, address, contact information, and profession or main activity if the client is a legal entity.

B- A declaration from the client that they understand the terms and conditions of the Investment Account Opening Agreement, and that all data and information provided to the Financial Market Institution is accurate, complete, valid, and not misleading.

C- A commitment from the client to update their data and information or confirm that there has been no change when requested by the Financial Market Institution at the end of each periodic period determined by the Financial Market Institution, which shall not exceed three years, as well as a commitment to provide renewed identification document data at the end of its validity, and an acknowledgment that the client is aware that the Financial Market Institution will freeze the investment account if this obligation is breached. Additionally, a commitment from the client to comply with the Financial Market System and its executive regulations, and other applicable laws and regulations in the Kingdom, particularly the Anti-Money Laundering Law and its executive regulations, and the Anti-Terrorism Crimes and Financing Law and its executive regulations.

D- Unless the company is a publicly listed joint-stock company, the Investment Account Opening Agreement signed with any company must include a commitment from the company to notify the Financial Market Institution immediately upon any change in any of the documents, data, or information previously provided when opening the investment account.

The financial market institution must issue the client an identification card for the investment account upon request and deliver it to him or send it to him, which includes his name, his investment account number, and the name of the financial market institution.

A- Opening investment accounts for Saudi natural persons:

• To open an investment account for a Saudi natural person, the financial market institution must obtain valid national identity card data and verify its authenticity.

B- Opening investment accounts for citizens of Gulf Cooperation Council countries:

• To open an investment account for a citizen of a member state of the Gulf Cooperation Council, the financial market institution must obtain valid passport or national identity card data and verify its authenticity.

C- Opening an investment account for foreigners residing in the Kingdom:

• 1- Foreign resident holding a residence permit or resident ID:

• To open an investment account for a foreign resident holding a residence permit or resident ID, the financial market institution must obtain valid residence permit or resident ID data and verify its authenticity.

• 2- Holders of the five-year residence card:

• To open an investment account for a holder of the five-year residence card, the financial market institution must obtain valid five-year residence card data and verify its authenticity.

• 3- Members of accredited diplomatic missions in the Kingdom:

• To open an investment account for a member of an accredited diplomatic mission in the Kingdom, the financial market institution must obtain a letter of introduction from the embassy of the diplomatic mission member and valid diplomatic card data and verify its authenticity.

D- Opening investment accounts for foreign natural persons not residing in the Kingdom:

• To open an investment account for a foreign person not residing in the Kingdom for the purpose of investing in securities permitted for investment based on the Investment Law and its executive regulations and related instructions issued by the authority, the financial market institution must obtain valid passport data for that person and verify its authenticity.

E- Special provisions regarding the opening of investment accounts for natural persons:

• 1- Opening an investment account for the blind or illiterate:

  • A- To open an investment account for a blind or illiterate client, that client has the right to provide a personal identifier who will inform him of the procedures taken to open the investment account and explain to him the terms and conditions contained in the agreement for opening this account. If the client does not provide a personal identifier, he will be informed of the procedures by an employee of the financial market institution, and this identification will be certified by one of the branch or main center officials at the financial market institution, confirming that the client has been informed of all data in the client identification form and the investment account opening agreement, the terms and conditions related to the investment account, and that the client acknowledged that he bears all responsibilities arising from opening that account.

  • B- The personal identifier for the blind or illiterate must be a natural person of full capacity who has personal knowledge of the blind or illiterate person wishing to open an investment account and holds a valid identity document, and is able to inform the blind or illiterate person of the procedures for opening the investment account and read the terms and conditions of the agreement for opening that account to him, and must acknowledge in writing that he has done so.

  • C- Valid identity document data for the identifier must be obtained and verified for authenticity.

  • D- When the financial market institution opens an investment account for any blind or illiterate client, that client is not entitled to receive any services via telephone or electronic services for operating the investment account until one of the employees of the financial market institution, or his personal identifier, reads the terms and conditions related to these services to him and informs him that he has been granted these services based on his desire and choice and his awareness of the risks of using them, and that he bears legal responsibility for all operations carried out through these services, and the financial market institution obtains a written acknowledgment signed by the client that he understood this.

  • E- The financial market institution may accept the thumbprint or personal seal of the blind or illiterate client as a personal signature in all transactions with him.

  • F- Except for transactions via telephone or electronic transactions, the financial market institution must obtain the client's signature on any action taken by the blind or illiterate client on his investment account, with his knowledge of the nature of the action he signed, and that he bears responsibility for it. If the blind or illiterate client was identified by a personal identifier when opening the account, the financial market institution must obtain a written acknowledgment signed by the personal identifier who meets the conditions stipulated in subparagraph (B-1) of paragraph (E) of this article, with the client's knowledge of the nature of the action he signed, and that he bears responsibility for it as a personal identifier.

• 2- Opening an investment account for those under the age of 18 Hijri years:

  • A- The investment account for those under the age of 18 Hijri years is opened by the guardian or trustee, provided that the investment account is in the name of the client and operated by the guardian or trustee.

  • B- Valid identity document data must be obtained for both the client under the age of 18 Hijri years and the guardian or trustee and verified for authenticity.

  • C- If the client is a Saudi national and under 15 Hijri years, valid family register data including the client and valid national identity card data for the guardian or trustee must be obtained and verified for authenticity, without requiring the client to present a national identity card at that time.

  • D- If the client is under the age of 18 Hijri years and under guardianship, the financial market institution must obtain a copy of the guardianship deed issued by the competent court and verify its authenticity, and must comply with all provisions contained therein.

  • E- If the client is a foreigner under the age of 18 Hijri years and is included with others in the residence permit or resident ID, valid residence permit or resident ID data including the client must be obtained and verified for authenticity, provided that the investment account is in the name of the client and is opened and operated by the holder of the residence permit or resident ID including the client.

  • F- The financial market institution must take due diligence measures regarding the client on behalf of the guardian or trustee, and the guardian or trustee in his actions on behalf of the client under 18 Hijri years must comply with all legal responsibilities applicable to the client when acting in his personal account.

• 3- Opening an investment account for a legally incompetent person:

  • A- The investment account for a legally incompetent person is opened by the guardian or trustee, provided that the investment account is in the name of the client and operated by the guardian or trustee.

  • B- The financial market institution must obtain valid identity document data for the guardian or trustee as well as valid identity card data for the legally incompetent client over 18 Hijri years or family register data for those under 15 Hijri years and verify its authenticity.

  • C- A copy of a final judgment or one subject to immediate enforcement issued by the competent court must be obtained and verified for authenticity, indicating that the person for whom the investment account is to be opened is considered legally incompetent, and the financial market institution must comply with all provisions contained therein.

  • D- The financial market institution must take due diligence measures regarding the client on behalf of the guardian or trustee, and the guardian or trustee in his actions in the account of the legally incompetent client must comply with all legal responsibilities applicable to the client when acting in his personal account.

• 4- Opening an investment account for a person unable to write and sign:

  • The financial market institution must open the investment account for the client unable to write and sign using the same procedures for opening investment accounts for natural persons, except that the financial market institution must accept the thumbprint of the client or his personal seal instead of the signature.

• 5- Opening an investment account for an interdicted person:

  • A- The investment account for an interdicted person is opened by his legal representative, provided that the account is in the name of the interdicted person and operated by his legal representative.

  • B- Valid identity document data must be obtained for both the interdicted person and his legal representative and verified for authenticity.

  • C- A copy of a final judgment of interdiction or one subject to immediate enforcement issued by the competent court must be obtained and verified for authenticity, and the financial market institution must comply with all relevant provisions contained therein.

  • D- The financial market institution must take due diligence measures regarding the client on behalf of the legal representative of the interdicted person, and the legal representative in his actions in the account of the interdicted person must comply with all legal responsibilities applicable to the client when acting in his personal account.

A- Opening investment accounts for Saudi companies and companies from the Gulf Cooperation Council countries:

• 1- To open an investment account for a Saudi company, it must be established in accordance with the Companies Law. To open an investment account for a company from the Gulf Cooperation Council countries, it must meet the definition of a Gulf legal person.

• 2- Unless the company is listed on the market, the company's articles of association, a decision issued by the shareholders' assembly, the company's founding contract, or a decision by the partners must state that the company is permitted to invest in securities.

• 3- To open an investment account for a Saudi company or a company from the Gulf Cooperation Council, the financial market institution may refer to the documents included in Appendix No. (1) of these instructions, by obtaining copies of them and verifying their authenticity.

• 4- When opening an investment account for a listed company (excluding banks and insurance companies) or a subsidiary of the listed company included in the consolidated financial statements of the listed company, the financial market institution must comply with the following additional conditions:

  • - The investment of the listed company in the securities listed in the market must be based on a decision issued by the board of directors of the listed company and the company for which the account is to be opened, if it is a subsidiary, specifying the investment controls. The financial market institution must obtain a copy of that decision and verify its authenticity before opening the investment account for the company.

  • - Unless the investment of the listed company, or its subsidiary, in the market has been for a period of one year such that the company commits not to sell the security before one year has passed from the date of the last purchase of the security belonging to the same issuer, the investment in securities must be through an investment fund or a private investment portfolio managed by a financial market institution in accordance with a management contract, provided that the contract explicitly states the complete separation between the listed company, its subsidiaries, and investment decisions, and that none of the contract's provisions conflict with that. The financial market institution must ensure that the terms of the contract comply with these controls before signing a management contract with the listed company or its subsidiary.

  • - The financial market institution must notify the authority without delay of any management contract signed with any listed company or its subsidiary, indicating the number of the investment account opened for this purpose and the number of the associated private investment portfolio.

B- Opening investment accounts for foreign legal persons:

• The financial market institution may open an investment account for a foreign legal person that does not have a headquarters in the Kingdom for the purpose of investing in the securities it is permitted to invest in based on the Capital Market Law and its executive regulations and the relevant instructions issued by the authority, including opening an investment account for a foreign legal person for the purpose of entering into a swap agreement in accordance with the provisions of the rules governing foreign investment in securities.

C- Opening investment accounts for qualified foreign investors:

• To open an investment account for a qualified foreign investor, the financial market institution must ensure that the foreign investor meets the relevant qualification requirements stipulated in the rules governing foreign investment in securities before opening an investment account for them as a qualified foreign investor.

D- Opening investment accounts for funds owned by a government entity:

• 1- The financial market institution may open an investment account for a government fund provided that the fund is wholly owned by a Saudi government entity or a Gulf Cooperation Council country.

• 2- When the financial market institution opens an investment account for the fund mentioned in paragraph (1) above, it must obtain copies of the following documents and verify their authenticity:

  • - The fund's articles of association.

  • - The decision issued to name the individuals authorized to open and operate the investment account for the fund and their valid identification documents.

  • - The founding contract of the fund (if any) and its appendices, which clearly indicate the composition of both the fund's capital and its management.

  • - Documents that clarify the names of the members of the fund's board of directors.

E- Opening investment accounts for non-profit organizations in the Kingdom:

• When the financial market institution opens an investment account for a non-profit organization in the Kingdom, it must obtain copies of the following documents and verify their authenticity:

  • - The license issued by the relevant government agency.

  • - The articles of association that include an explicit provision allowing the organization to invest in securities. If there is no explicit provision in the articles of association, a statement must be obtained from the licensing authority for the non-profit organization indicating its approval for investment in securities.

  • - The board of directors' decision approving the opening of the investment account and granting authority to those authorized to operate the investment account.

F- Opening investment accounts for endowments:

• 1- The financial market institution must obtain copies of the following documents and verify their authenticity when opening an investment account for an endowment in the Kingdom:

  • - The endowment deed and the deed of administration.

  • - The national identity card of the endowment administrator/board of administrators.

  • - The decision of the administrator or the board of administrators - if there is a board of administrators for the endowment - approving the opening of the investment account and granting authority to those authorized to operate the investment account.

• 2- The endowment deed must include a provision allowing the endowment to invest in securities, or the administrator must provide a statement from the government agency supervising the endowment approving the investment in securities and the individuals authorized to operate the investment account if the administrator or the board of administrators has delegated the authority to operate that account.

G- Opening investment accounts for government entities:

• To open an investment account for a government entity (Saudi or from the Gulf Cooperation Council), the financial market institution must obtain copies of the following documents and verify their authenticity:

  • - The basic documents of the government entity according to its administrative organization and the relevant regulations.

  • - The decision of the authorized person in the government entity delegating the individuals who will open and operate the investment account to do so, along with their identification documents.

  • - The approval of the Ministry of Finance (or its equivalent in Gulf Cooperation Council countries) to open the investment account, unless there are regulatory texts issued by the competent authority explicitly granting the government entity the right to invest in securities.

H- Opening investment accounts for international organizations and bodies:

• To open an investment account for international organizations or bodies that have a headquarters in the Kingdom, the financial market institution must obtain copies of the following documents and verify their authenticity:

  • - The founding agreement and/or the articles of association.

  • - The headquarters agreement signed with the Government of the Kingdom, which permits the organization or international body to invest in securities.

  • - The decision of the authorized person according to the founding agreement and/or the articles of association delegating the individuals who will open and operate the investment account.

I- Opening investment accounts for investment funds established in the Kingdom or in Gulf Cooperation Council countries:

• To open an investment account for an investment fund established in the Kingdom or in Gulf Cooperation Council countries, the financial market institution may refer to the documents included in Appendix No. (2) of these instructions, by obtaining copies of them and verifying their authenticity.

If a natural or legal person applies to the Financial Market Institution to open an investment account, and these instructions do not include the procedures for opening the investment account for them, the Financial Market Institution must obtain a statement from the Authority confirming that it has no objection to opening an investment account for that person.