SAMA Present Draft Updating, in debt Crowdfunding Practicing Rules

Saudi Central Bank (SAMA) announced launching a draft updating the rules for practicing, in debt crowdfunding activity, calling on the public, interested parties and specialists to feed it back – in order to enhance the principle of transparency and participation – expressing their views and observations on the draft, through the “istitla’a” platform of the National Competitiveness Center.

The update of these rules was based on the continuous efforts exerted by SAMA to develop the financing sector, and to keep pace with developments, in the financing industry, in general, and in continuation of its endeavor to support and enable fintech business, in particular, resulted in the emergence of many fintech companies, in addition to the remarkable development of technology, amid the financing industry.

It indicated that this draft included redefining the beneficiary; to include all commercial establishments registered, in the Kingdom, seeking to obtain financing through the debt crowdfunding platform, and adding a clear definition for the pooled accounts, to ensure complete separation among the funds of the participants, in the financing process and the funds of the in debt crowdfunding facility.

In addition to determining the ceiling of funds, through the debt crowdfunding platform for companies’ in debt crowdfunding, based on the capital criterion, amending Article 28.

SAMA stated that the views and observations on the draft shall be received within 15-day, knowing that all observations and remarks will be the subject of study; for the purpose of adopting the final version of these rules. The draft can be viewed via visiting the “istitla’a” platform of the National Competitiveness Center via the link: https://istitlaa.ncc.gov.sa/ar/Finance/SAMA/Crowdfunding/Pages/default. aspx.