CmaBoardReleases
Title: Circular No. (12) of 2016 on the Enforcement of the New Requirements of the Executive Bylaws of Law No. 7 of 2010 on the Establishment of the Capital Markets Authority and Regulating Securities Activities and their Amendments Relevant to the Activity of Investment Portfolio Manager
"Circular to All Persons Licensed to Practice the Activity of Investment Portfolio Manager"
Chairman of the Board of Directors
Greetings,
We would like to draw your attention to the provision of Article (4) of Resolution No. (72) of 2015 on issuance of the Executive Bylaws of Law No. (7) of 2010 on the Establishment of the Capital Markets Authority and Regulating Securities Activities and its amendments. Appendix (3) of the mentioned resolution stipulates that licensed persons are provided transitional period to complete any new requirements provided for in Module Seven (Clients’ Funds and Clients’ Assets) by November 30, 2016.
Therefore, and with end of the transitional period, we would like to remind you that all provisions of the Executive Bylaws shall come into force starting from today 1/12/2016.
We would also like to emphasize that all persons licensed to manage investment portfolios shall comply with all new requirements included in the transitional period, whether they are data or reports, most importantly the following:
Requirement: Report identifying any trading by Members of the Board of Directors and employees of the Licensed Person on Securities Investment Portfolios with the Licensed Person, no later than ten Business Days as of the end of each month.
Module: Module Seven (Clients’ Funds and Clients’ Assets)
Article: (5-3-2) Reports to the Capital Market Authority
Clause: Clause No. (3)
Requirement: Report identifying any trading by Investment Portfolios of Clients on Securities issued by the Licensed Person or the Parent Company or Subsidiary or Associate companies, no later than five Business Days as of the end of each month.
Module: Module Seven (Clients’ Funds and Clients’ Assets)
Article: (5-3-2) Reports to the Capital Market Authority
Clause: Clause No. (4)
Requirement: Report indicating name of the entity authorized to manage Investment Portfolios. This report shall define in detail the managerial entity which manages each Clients’ Investment Portfolio and any company portfolios. This is in addition to immediately informing the Authority of any change in the identity of the entity authorized to manage any Investment Portfolio
Module: Module Seven (Clients’ Funds and Clients’ Assets)
Article: (5-3-2) Reports to the Capital Market Authority
Clause: Item (d)
Requirement: A copy of the Investment Portfolios management manual and its policies for managing Investment Portfolios as approved by the Licensed Person’s Board Members. This is in addition to notifying the Authority of any amendment of such manual.
Module: Module Seven (Clients’ Funds and Clients’ Assets)
Article: (5-3-2) Reports to the Capital Market Authority
Clause: Item (e)
Nevertheless, you are required to comply with all provisions of the Executive Bylaws of Law No. 7 of 2010 on the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments.
Dr. Nayef Falah Al-Hajraf
Chairman, CMA Board of Commissioners
Issued on: 1/12/2016