Title: Resolution No. (170) of 2019 Regarding Amending Some Provisions 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 for the Implementation of Capital Adequacy Regulations for the Licensed Persons

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

- CMA Board of Commissioners Resolution passed in its meeting No. (36) of 2019 held on 06/11/2019;

The Following Was Resolved:

Article (1)

Appendix No. (1) of Module Five (Securities Activities and Registered Persons), of the Executive Bylaws of Law No. (7) of 2010 is hereby amended pursuant to the Annex No. (1) attached to this Resolution.

Article (2)

Module Seventeen (Capital adequacy regulations for the licensed persons) is to be added to the set of modules of the Executive Bylaws of Law No. (7) of 2010 in accordance to Annex No. (2) attached to this Resolution.

Article (3)

The following are the transitional provisions set for the implantation of this resolution: 

1. The licensed persons are granted a grace period (transitional period) to satisfy and comply with the requirements set in the referenced module (Module seventeen) in article two of this resolution.
2. The licensed persons are granted an exemption from the requirement to have the registered auditor review/audit the capital adequacy report prepared by the licensed person as stated in article (3-2) of the referenced module (Module seventeen) in article two of this resolution.
3. The licensed person is granted the option to forfeit the granted grace period (transitional period) in order to be allowed to reduce his paid-up capital in accordance with what is determined from the requirements of the referenced module (Module seventeen) in article two of this resolution, in the condition that all the necessary approvals from CMA towards reducing Capital have been satisfied.
4. The implementation of the referenced module (Module seventeen) in article two of this resolution is to be mandatory on all licensed person who are licensed post the date of the issuance of this resolution.

Article (4)

All provisions that conflict with this resolution shall be annulled, and the concerned bodies shall execute this Resolution, each within its jurisdiction. This Resolution shall come into force from the date of its issuance, and it shall be published in the Official Gazette.

Prof. Ahmad A. Al-Melhem

Issued on: 19/11/2019

The Translated Document

Copy of the Official Document