Saudi CMA says rules amendments aim to boost asset management growth in financial sector

Bader Balghonaim, CMA’s Deputy of Legal Affairs and Enforcements

The rules amendments made by the Capital Market Authority (CMA) in 2022 aim to support the growth of asset management in the financial sector, Al Arabiya TV reported, citing Bader Balghonaim, CMA’s Deputy of Legal Affairs and Enforcements.

He added that the move aims to boost institutional investments and governance of mutual funds, as well as enhance investor protection and create a fair competitive environment.

The authority adopted the amendment to three regulations and issued a new regulation in 2021, including the rules on offering securities as well as the regulations on investment funds and real estate investment funds, in addition to amending the regulations on financial market behavior.

Furthermore, the CMA issued a regulation on reporting market law violations as well as determining the whistleblowers remuneration and the relevant controls.

The regulations amendment and continuous review allow the development of the capital market and enable the authority to exercise its supervisory role in a way that helps reduce and deal with violations.

The market regulator sees positive impacts of the regulations development, using tools and indicators to measure the impact. In addition, the CMA considers the compensation for affected persons.