CmaBoardReleases
Title: Resolution No. (54) of 2022 Regarding The Regulation of Procedures for the Handing Over of Clients’ Funds and Clients’ Assets after the Cancelation of the Licensed Person’s License
Having Perused:
- Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Executive Bylaws, and their amendments; and
- CMA Board of Commissioners Resolution passed in its meeting No. (13) of 2022 held on 06/04/2022.
The Following Was Resolved
Article (1)
Module Five (Securities Activities and Registered Persons) and Module Seven (Clients’ Funds and Clients’ Assets) of the Executive Bylaws of Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments are hereby amended pursuant to Annex (1) attached to this Resolution.
Article (2)
Appendix (3) (General Procedures for the Handing Over of Clients’ Funds and Clients’ Assets to the Party Concerned with Holding, Managing or Safe-keeping in the event the Licensed Person’s License is Canceled by the Authority Pursuant to the Provisions of Article 67 of the Law) is hereby added to Module Seven (Clients’ Funds and Clients’ Assets) of the Executive Bylaws of Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments pursuant to Annex (2) attached to this Resolution.
Article (3)
Companies whose license has been canceled by the Authority shall comply with the provisions regarding the handing over of clients’ funds and clients’ assets to the party concerned with holding, managing, or safe-keeping in the event the Licensed Persons’ license is canceled by the Authority pursuant to the Executive Bylaws of Law No. (7) of 2010 and their amendments and the resolutions and instructions issued by Authority in this regard.
Article (4)
Licensed persons addressed by these amendments shall update their current contracts with their clients according to the Authority’s requirements in this regard, by including provision regarding the handing over of clients’ funds and clients’’ assets to the party concerned with holding, managing, or safe-keeping in the event the Licensed Persons’ license is canceled by the Authority pursuant to the Executive Bylaws of Law No. (7) of 2010 and their amendments and the resolutions and instructions issued by the Authority in this regard.
Licensed Persons addressed by these amendments shall update their policies and operational procedures and submit these to the Authority.
Provided that the Licensed Persons shall fulfill the requirements stipulated in this Article within a maximum period of 6 months from the date of this Resolution.
Article (5)
The concerned bodies shall execute this Resolution, each within its jurisdiction. This Resolution shall come into force from the date of its issuance, and it shall be published in the Official Gazette.
Prof. Ahmad Almelhem
Issued on: 11/04/2022