Title: Resolution No. (181) of 2023 Regarding The Launch of the Initial Implementation Phase of Module Nineteen (Financial Technologies) 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

Having Perused:
- Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Executive Bylaws, and their amendments; and
- Resolution No. (10) of 2023 Regarding Issuance of Module Nineteen (Financial Technologies) of the Executive Bylaws of Law No. 7 of 2010 issued on 15/01/2023; and
- CMA Board of Commissioners Resolution passed in its meeting No. (39) of 2023 held on 27/12/2023. 

The Following Was Resolved
Article (1)
The initial implementation phase of Module Nineteen (Financial Technologies) 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 is hereby launched. This phase will start on 02/01/2024 and end on 01/07/2025.

Article (2)
The principle of “Comply or Explain” is hereby applied to some provisions of Module Nineteen (Financial Technologies) 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 through the primary implementation phase of Module Nineteen (Financial Technologies) pursuant to Annex (1) attached to this Resolution.

Article (3)
Form 1 (Investment Advisor –Application Form for Licensing Digital Financial Advisory Service Providers) of Appendix 2 (Digital Financial Advisory Forms) of Module Nineteen (Financial Technologies) 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 is hereby replaced by “Application Form for Licensing Financial Advisor to Provide Digital Financial Advisory Service and Registration in the Financial Technologies Register” included in Annex (2) attached to this Resolution.

Article (4)
The fees of the applications related to Digital Financial Advisory Service are hereby added to Appendix 4 (Schedule of the CMA Services Fees) of Module Two (Capital Markets Authority) 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 pursuant to Annex (3) attached to this Resolution.

Article (5)
Persons wishing to provide the digital financial services mentioned in Module Nineteen (Financial Technologies) 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 shall submit their applications for registration in CMA’s register of securities-based digital financial services during the primary implementation phase starting from 02/01/2024 until 01/07/2024. The applications related to registering the Securities-Based Crowdfunding Platform shall be submitted pursuant to the forms included in Module Nineteen (Financial Technologies). The applications related to the licensing of a financial advisor for providing digital financial advisory service and registration in CMA’s financial technologies register shall be submitted pursuant to the “Application Form for Licensing Financial Advisor to Provide Digital Financial Advisory Service and Registration in the Financial Technologies Register” included in Annex (2) attached to this Resolution.

Article (6)
The regulatory periods specified for the CMA to consider license and registration applications in CMA’s financial technologies register mentioned in Module Nineteen (Financial Technologies) shall not be applied until the completion of the initial implementation phase of Module Nineteen (Financial Technologies).

Article (7)
Persons who provide any of the digital financial services for their clients, as mentioned in Module Nineteen (Financial Technologies), before the issuance date of Resolution No. (10) of 2023 Regarding Issuance of Module Nineteen (Financial Technologies) previously mentioned are hereby granted a transitional period starting from 02/01/2024 to 01/07/2024 in order to regularize their status in accordance with the requirements and provisions of Module Nineteen (Financial Technologies). During this period, they are required to provide the CMA with the documents and information indicating they are subject to status regularization, without prejudice to the other provisions of the initial implementation phase included in this Resolution. This shall not prevent them from continuing their provision of the service during the transitional period.

Article (8)
The concerned bodies shall execute this Resolution, each within its jurisdiction. This Resolution shall come into force as of 02/01/2024, and it shall be published in the Official Gazette.

Prof. Ahmad Almelhem
Issued on: 28/12/2023.

The Translated Dcoument

Copy of the Official Document