CMA LAW: Circular No. (3) of 2021 Regarding the Policies and Procedures of Capital Adequacy Regulations

(To all Licensed Persons and License Applicants with the Authority)

In light of the expiration of the deadline for meeting the capital adequacy requirements for licensed persons mentioned in item No. 1 of Article Three of Resolution No. (170) of 2019 regarding the implementation of capital adequacy regulations for licensed persons, and with reference to Article (2-1) of Module Six (Policies & Procedures of Licensed Persons) 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, which stipulates that “Each Licensed Person shall prepare a manual of policies and procedures in order to ensure compliance with the Law and these Bylaws, and these shall regulate, in particular, the following: ..... 16. Any other policies and procedures as required by the Authority.

The Capital Markets Authority draws the attention of licensed persons to the fact that they must establish policies and procedures to be approved by the board of directors of the licensed person to ensure compliance with the requirements mentioned in Module Seventeen (Capital Adequacy Regulations for Licensed Persons), and to provide the Authority with a copy of it through the Authority's electronic portal, through the service of updating the policies and procedures no later than August 22, 2021.

Moreover, we would like to point out that applicants who apply to obtain a license to practice securities activities and which have not been decided upon are required to submit the required policies and procedures during the application period in accordance with the regulations issued for each case separately.

Othman I. Alissa
Acting Managing Director 
Issued on: 24/02/2021  

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