Aiming to Boost Protection of Client Money and Assets "The Capital Market Authority" Calls for Public Consultation on the Amended Draft of Capital Market Institutions Regulations

​​The Capital Market Authority's (“CMA's") Board called upon relevant and interested persons participating in the capital market on the Amended Draft of Capital Market Institutions Regulations (“Amended Draft Regulations") for Public Consultation for a period of thirty (30) calendar days ending on 17/01/1445 AH, corresponding to 04/08/2023 G.

The Amended Draft Regulations aim to develop the provisions regulating capital market institutions bankruptcy stated in Part 8 of the Capital Market Institutions Regulations by explaining the CMA’s role and competencies in supervising the capital market institutions in cases of bankruptcy and boosting the protection of clients’ money and assets, which shall enhance stability in the capital market. 

The main elements of the Amended Draft Regulations include adding the requirements of obtaining the CMA’s written consent by the capital market institution that holds clients’ money or assets or manages investment funds, before the commencement of any of the bankruptcy or judicial depository procedures prior raising before the competent court.

The Amended Draft Regulations also included adding a general provision stating that Clients’ money and assets shall not be included in the capital market institution’s bankruptcy assets, and excluding clients’ money and assets from the provisions of moratorium stipulated in the Bankruptcy Law; in order to confirm that the capital market institution or the trustee or any other person can not include such money and assets to the bankruptcy assets, and to ensure that clients’ money and assets are excluded from the provisions of moratorium under the Bankruptcy Law.
The Draft included, as well, adding a general provision to ensure the CMA’s competency in directing the capital market institution to take any measures, as it deems necessary, under the Capital Market Law and the Implementing Regulations thereof to boost the protection of the capital market institution clients’ money and assets including completing any outstanding business or transferring it to another capital market institution and taking the required procedures to transfer clients’ money and assets and protect their rights.
It is anticipated that such amendments shall be reflected on enhancing the protection of investors and developing the confidence of the capital market’s participants to grow and boost the capital market.  

The CMA announced that the comments of relevant and interested persons shall be taken into full consideration for the purpose of finalizing the draft amendments. Such comments can be posed through any of the following:
The Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform “Istitlaa”), affiliated with the National Competitiveness Canter (NCC) through the following link: (​)
The prescribed form through the following email: (

The Draft can be viewed via the following link: