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 inMarket Conduct Regulation, andFinancial Market Institutions Regulation, andSecurities Business Regulation, andthe 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 may exempt any person subject to this Regulation from the application of any of its provisions, either wholly or partially, based on a request received from that person or on its own initiative.
The authority shall impose a financial fee on the fund manager and the distributor in accordance with what it determines.
Any person subject to the provisions of this Regulation has the right to file a complaint with 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, they must appoint a licensed capital market institution authorized to practice investment management activities and operate funds to operate the investment funds they manage.
C) The capital market institution appointed pursuant to paragraph (B) of this article may act as the custodian for the relevant 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 ofthe Capital Market Lawand 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.