​On Sunday and Monday of this week, the Capital Market Authority has conducted two workshops to explain the continuous compliance obligations mentioned in the amended Investment Funds Regulations on Fund managers.  The workshops were held at CMA's Head Office in Riyadh and was attended by a number of the Authorised Persons representatives. This step comes as part of CMA's continuous efforts to increase the level of compliance with the Capital Market Law and its implementing regulations.

The workshop focused on explaining the difference between the continuous compliance obligations mentioned in the amended Investment Funds Regulations and the current one. This is in time with the introduction and entry into force of the amended regulations which is expected to be on 6/2/1438H corresponding to 6/11/2016. The Authority will continue to conduct similar workshops during the next two months to cover all the compliance aspects mentioned in the amended Investment Funds Regulations.

CMA explained that the purpose of these regulations is to develop the regulatory framework governing investment funds. It also regulates the relationship between the funds and the funds' managers with the investors which would create a suitable environment to diversify investment options and to increase the level of institutional investment. Therefore, to achieve that, the regulations included several provisions to raise the level of disclosure to investors (unit holders) such as the periodic reports that a fund manager should send to the investors (unit holders). The regulations also included detailed information on the participation of investors (unit holders) in the voting on specific decisions and procedures taken by the fund manager, and requirements to insure that investors' money and assets are dealt with in a manner that benefit the unit holders. The fund manager should also disclose the voting policies in listed companies. Furthermore, the regulations set specific provisions that govern fund managers including custodians independence from the fund manager and setting the durations and procedures regarding the approvals of the establishment of public funds, in addition to the improvement of the requirements that govern private real estate funds as well as the provisions for merging investment funds.