​The Board of the Capital Market Authority ("CMA") issued its resolution approving amendments to the Investment Accounts Instructions to be effective as of the date of their publication, after the draft Instructions were made available for public consultation on the CMA's website for a period of 30 calendar days.

The Instructions, issued by the CMA Board on 25/6/1437H, corresponding to 3/4/2016G, aim to regulate the opening and operation of investment accounts by authorised persons licensed to conduct dealing, management, or custody activities, and  also aim to set out the regulatory and supervisory rules related to investment accounts.

The amendments of the Investment Accounts Instructions aim to enable the electronic opening of investment accounts, and facilitate the procedures for opening, operating and closing investment accounts in accordance with the relevant regulatory and supervisory requirements, while preserving the required protection for investors. The amendments come in continuance to the CMA's role to develop, regulate, and promote confidence in the capital market in line with the CMA's strategic plan and the Financial Sector Development Program, one of the programs aiding in achieving the Saudi 2030 Vision.

The CMA has stated that it has carefully studied all the opinions and observations received during the public consultation period for the purpose of adopting the final amendments to the Investment Accounts Instructions, in line with the CMA's objectives.

Some of the key amendments include enabling the authorized persons to verify the validity of the documents, information and data provided when opening an investment account using documents, information or data from a reliable and independent source, which will enable verification using reliable electronic systems that provide electronic connectivity with the official authorities' data.

In addition, the amendments include: removing the requirement to obtain the CMA's approval to open investment accounts for certain investor categories, removing the requirement to have any document that is presented by a GCC company's representative to open an investment account authenticated by the Saudi Embassy in the country of the relevant GCC company or by the Ministry of Foreign Affairs in the Kingdom, and revising the list of documents that must be submitted by Saudi and GCC companies, qualified foreign investors, and investment funds established in the Kingdom and GCC member states when opening investment accounts to be provided as guidance for the authorised persons.

The CMA added in its announcement that the CMA Board's resolution approving the amendments to the Instructions also rescinds the Anti-Money Laundering and Counter-Terrorist Financing Rules issued by the CMA, after reviewing them in light of the Anti-Money Laundering Law issued by Royal Decree No. (M / 20) dated 05/02/1439H, and its Implementing Regulations, and the Combating-Terrorism Crimes and its Financing Law issued by Royal Decree No. (M / 21) dated 12/02/1439H.

The CMA further explained that it is working to prepare a guidance note for the implementation of the provisions of the Anti-Money Laundering Law and its Implementing Regulations and the Combating-Terrorism Crimes and its Financing Law, which authorised persons can use as guidance for compliance with their relevant provisions.

The amended Investment Account Instructions can be viewed via the following link:

Investment Account Instructions