ع

Published on the same date

No announcements

An Announcement of the Issuance of the Board of the CMA Resolution Number 4-39-2016 and dated 25/6/1437H to adopt the Investment Accounts Instructions

​As part of the Capital Market Authority's ("CMA") continuous efforts to develop the capital market in the Kingdom and protect investors, and based on the Capital Market Law ("CML") issued by the Royal Decree Number (M/30) Dated 2/6/1424 H, the CMA Board of Commissioners has issued its Resolution Number 4-39-2016 Dated 25/6/1437H corresponding to 3/4/2016G to adopt the Investment Accounts Instructions ("Instructions"). The Instructions shall be effective and in full force as from 3/1/1438H corresponding to 4/10/2016G. The CMA Board of Commissioner`s Resolution includes the following:

  1. Cancel the CMA Board of Commissioner`s Resolution Number (1-95-2005) dated 30/8/2005G regarding the CMA Rules of governing the Powers of Attorney at the effectiveness date of the Instructions. And the authorised persons shall inform their clients to comply with the relevant provisions stated in the Instructions.  
  2. To waive the obligation that the authorised persons must request an update of such information from each customer at least annually which is stated in Clause (c) of Article (39) of the Authorised Persons Regulations, to be the authorised persons must request an update of such information from each customer at least every three years. This waiver shall be in force as from the effectiveness date of the Instructions.
  3. To waive the obligation that the authorised persons must undertake annual or ad hoc reviews of existing records, particularly for higher risk categories of clients or business relationships, when appropriate trigger events occur which is stated in Article (18) of the Anti-Money Laundering and Counter-Terrorist Financing Rules, to be the authorised persons must undertake every three years or ad hoc reviews of existing records, particularly for higher risk categories of clients or business relationships, when appropriate trigger events occur. This waiver shall be in force as from the effectiveness date of the Instructions.
  4. The authorised persons must obtain from their foreigners clients who are residing in the Kingdom and have investment accounts opened before the effectiveness date of the Instructions written statements including the requirements stated in Clause (3) of (C) of Article (6) of the Instructions, and if any client does not provide such statement before the effectiveness date, the authorised person must notify the client before the date of freezing his investment account.  

The Instructions aim to enhance and develop the Authorised Persons procedures in relation to the opening and operating of the clients’ investment accounts, and to set the Authorised Persons relevant controls and supervisory rules. Taken into consideration during the preparation of the Instructions, the comments and observations received from concerned and interested parties.

The Instructions can be viewed on the CMA’s website on the following link:

http://cma.org.sa/en/Market/Elan/Documents/InvestmentAccountsInstructionsEN.pdf