CMA LAW: Circular No. (16) of 2019 Regarding the Semi-Annual Risk Report Concerning the Compliance with the Provisions of Module Six of the Executive Bylaws of Law No. (7) of 2010 and its Amendments

"Circular to All Licensed Persons Subject to the Provisions of Module Six"

Chairman of the Board of Directors of the Licensed Person

Greetings,

As part of the CMA's keenness to regulate the securities activities and ensure compliance with the applicable rules and regulations, and in reference to the provisions of Article (4-4) of Chapter Four (Risk Management) 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 the Risk Management Officer of the Licensed Person shall file a report to the Board of Directors concerning the risks every six months, and submit a copy thereof to the Authority.

Therefore, you are required to  comply with the provisions of the mentioned Article, and submit a copy of the Semi-Annual Risk Report to the CMA, and it shall be in Arabic Language, within a maximum period of sixty days from the end of the reporting period. The mentioned report shall be prepared by the end of the first half and the end of the financial year of the Licensed Person.

In addition, at the time of the mentioned report preparation, you shall at least comply with the provisions of Articles (4-2) and (4-3) of the referred Module to ensure that all risks are defined, rated and managed, and to maintain continuous monitoring thereof in a proper manner, especially credit risks, market risks, liquidity risks, and operations risks, in addition to setting the objectives and policies of risk management of the Licensed Person.

Thus, the Capital Markets Authority affirms the importance of complying with all requirements stipulated in Chapter Four (Risk Management) 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, and with the provisions of this circular.

Othman Al-Issa

Acting Managing Director

Issued on: 09/12/2019

Copy of the Official Document

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