As part of the CMA's efforts to develop the capital market in Saudi Arabia, and based on the Capital Market Law issued by Royal Decree No. (M/30) Dated 02/06/1424 H and its implementing regulations, the CMA Board issued its resolution which included the amendments to the regulatory requirements for capital market institutions authorized to conduct the advisory activity or new applicants for such an activity. This step aims to develop the advising activity in the securities business in the Kingdom in a manner that serves the capital market sector and its participants. The amendments are as follows:

1. Exemption of capital market institutions authorized to conduct the advisory activity or new applicants for such an activity from the requirement of forming a board of directors.
2. Exemption of capital market institutions authorized to conduct the advisory activity or new applicants for such an activity  from the requirement of subparagraph (2) of paragraph (b) of article 20 of the capital market institutions regulations which require capital market institutions to have at all times a registered person for the CFO function.
3. Exemption of capital market institutions authorized to conduct the advisory activity or new applicants for such an activity from the requirements of paragraph (d) of article 20 of the capital market institutions regulations which require capital market institutions to have separate persons performing the CEO, CFO and compliance officer functions, and the compliance officer shall not  perform any  client service function.