CMA approves instructions on direct financing investment funds

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The Capital Market Authority (CMA) announced today approving the instructions on the direct financing investment funds, which shall be effective as of the date of their publication, according to the authority's statement.

These instructions are aimed to regulate the offering of the units of investment funds that are established for direct financing, and the management of these funds and their operations, including the conditions for granting direct financing to the beneficiary, investment limitations, and additional duties on the fund manager in that regard.

Moreover, these instructions come within the framework of the continuous cooperation between CMA and the Saudi Central Bank (SAMA), which resulted in the signing of a memorandum of understanding between the two sides regarding investment funds carrying out the activity of direct financing for institutions, the statement added.

This comes after CMA published the draft instructions on the direct financing investment funds for public consultation on its website and the unified electronic platform for consulting the public and government entities, which is affiliated to the National Competitiveness Center.