CMA’s amendments to securities business rules ‘qualitative shift’ for licensing requirements: official

The recent amendments introduced by the Capital Market Authority (CMA) to the securities business regulations represent a "qualitative shift" with regard to licensing and supervision requirements, Al-Arabiya TV reported, citing Raed Al-Humaid, CMA Deputy Assistant of Market Institutions. 

Among these amendments, the CMA expanded the scope of arrangement and advisory activities to include financial planning and wealth management. Moreover, a new concept has emerged, as any financial advisor in the Kingdom can operate as an independent financial adviser, Al-Humaid said.

For amendments to the authorized persons regulations, Al-Humaid added, “We hope this will mark a new phase of capital market institutions. Changing their name now demonstrates the nature of their operations. Reducing the licensing requirements will also make these licenses more attractive and increase services providers in this sector.”

The CMA has also modified the client classification, to be in line with the global standards.

The Saudi market regulator approved on Aug. 25 the amendments to the securities business regulations, authorized persons regulations and glossary of defined terms used in the regulations and rules of the CMA, Argaam reported.

The amendments aim at regulating and developing the capital market, enhancing the financial sector growth in the Kingdom, improving the services provided to investors, as well as developing the securities business activities.