Logo of Capital Market Authority
Saeed Juraybi, Head of Market Surveillance and Analysis Department, the Capital Market Authority, said an increase in the number of investors in the local stock market places more responsibility on capital market institutions to step up efforts and show commitment to the duties defined by the market regulator.
Such entities should protect the interests of clients and avoid providing investment advice that does not align with their financial positions or risk abilities.
Since its inception, CMA has been working to organize and continuously develop the entities under its supervision, which carry out securities business, in addition to strengthening control procedures and the level of financial adequacy, and raising the efficiency of managing the resources of those institutions to provide better services to their clients in line with international best practices, said that official.
He pointed out that, over the course of several years, the presence of specialized companies playing the role of financial brokerage between shareholders and listed companies and in the buying and selling transactions represented support for the financial market and its development. These companies played their role and strengthened confidence in the market under sound legislative frameworks and continuous supervision by the authority.
Furthermore, the present of several financial brokerage companies recently has created competition among them to attract new clients and investors, as each company offers a number of services and features in order to increase the number of its clients to achieve higher returns and revenues, Juraybi indicated.
He also highlighted that the process of selecting financial brokerage companies depends on several factors, most notable of which is obtaining a license from CMA, which sets strict control standards to preserve the interests of investors by obtaining brokerage services from qualified persons.
Juraybi added: "The presence of professional brokerage companies has always been a ky strategic requirement to achieve the aspirations of investors and boost their confidence in the Saudi financial market, in addition to the basic requirement, which is the authority’s exercise of its role in supporting investors if exposed to any actions that violate the financial market law".
In addition, the financial sector development program in Vision 2030 aims to create a diversified and effective sector that supports the development of the national economy, diversifying its sources of income, as well as spurring savings, financing and investment, through developing and deepening financial sector institutions, he said.
Juraybi also stressed the importance of financial market institutions' commitment to the applicable principles, in accordance with the "Capital Market Institutions Regulations" such as integrity, skill and diligence, ensuring the effectiveness of their management and oversight, maintaining adequate financial resources, adhering to appropriate standards of market conduct, cooperating with oversight and supervision bodies and communicating with clients and providing them with appropriate advice, while taking into account their interests and addressing any conflict of those interests.
Comments {{getCommentCount()}}
Be the first to comment
رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}
{{comment.DisplayName}}
{{comment.ElapsedTime}}