CMA LAW: Circular No. (12) of 2016 on the Enforcement of the New Requirements of the Executive Bylaws of Law No. 7 of 2010 on the Establishment of the Capital Markets Authority and Regulating Securities Activities and their Amendments Relevant to the Activity of Investment Portfolio Manager

"Circular to All Persons Licensed to Practice the Activity of Investment Portfolio Manager"

Chairman of the Board of Directors 

Greetings,

We would like to draw your attention to the provision of Article (4) of Resolution No. (72) of 2015 on issuance of the Executive Bylaws of Law No. (7) of 2010 on the Establishment of the Capital Markets Authority and Regulating Securities Activities and its amendments. Appendix (3) of the mentioned resolution stipulates that licensed persons are provided transitional period to complete any new requirements provided for in Module Seven (Clients’ Funds and Clients’ Assets) by November 30, 2016.

Therefore, and with end of the transitional period, we would like to remind you that all provisions of the Executive Bylaws shall come into force starting from today 1/12/2016.

We would also like to emphasize that all persons licensed to manage investment portfolios shall comply with all new requirements included in the transitional period, whether they are data or reports, most importantly the following: 

Requirement: Report identifying any trading by Members of  the  Board  of  Directors  and  employees of the Licensed Person on Securities Investment Portfolios with the Licensed Person, no later than ten Business Days as of the end of each month.
Module: Module Seven (Clients’ Funds and Clients’ Assets)
Article: (5-3-2) Reports to the Capital Market Authority
Clause: Clause No. (3)

Requirement: Report identifying any trading by Investment Portfolios of Clients on Securities issued  by  the  Licensed  Person  or  the  Parent  Company  or  Subsidiary  or  Associate companies, no later than five Business Days as of the end of each month.
Module: Module Seven (Clients’ Funds and Clients’ Assets)
Article: (5-3-2) Reports to the Capital Market Authority
Clause: Clause No. (4)

Requirement:  Report indicating  name  of  the  entity  authorized  to  manage  Investment Portfolios.  This  report  shall  define  in  detail  the  managerial  entity  which  manages each Clients’ Investment Portfolio and any company portfolios. This is in addition to immediately informing the Authority of any change in the identity of the entity authorized to manage any Investment Portfolio
Module: Module Seven (Clients’ Funds and Clients’ Assets)
Article: (5-3-2) Reports to the Capital Market Authority
Clause: Item (d)

Requirement: A copy of the Investment Portfolios management manual and its policies for managing Investment Portfolios as approved by the Licensed Person’s Board Members.  This is  in  addition  to  notifying  the  Authority  of  any  amendment of such manual. 
Module: Module Seven (Clients’ Funds and Clients’ Assets)
Article: (5-3-2) Reports to the Capital Market Authority
Clause: Item (e)

Nevertheless, you are required to comply with all provisions of the Executive Bylaws of Law No. 7 of 2010 on the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments.

Dr. Nayef Falah Al-Hajraf
Chairman, CMA Board of Commissioners 

Issued on: 1/12/2016   

Copy of the Official Document

Disclaimer: The information provided on this page is for reference purposes only, visitors are encouraged to review and understand the information provided in the official scanned document attached in the link above (if available). The CMA endeavors to ensure that the information on this page is complete and accurate, but the CMA does not guarantee the quality, accuracy, or completeness of any content at any time. In the event the information on this page is different from the content in the official scanned document attached in the link (if available), the official scanned document attached shall take precedence.