CMA calls on all participants in Saudi financial market to ‎express their views regarding market regulation amendments ‎

The project aims to develop the provisions regulating the bankruptcy of financial market institutions contained in Chapter Eight of the Financial Market Institutions Regulations, by clarifying the role and powers of the Authority in supervising financial market institutions in cases of bankruptcy, and enhancing the protection of clients’ funds and assets, in a way that supports stability in the market. Finance.

The main elements of the project include a statement of the requirements for a financial market institution that holds funds or assets of clients or manages investment funds to obtain the written approval of the Authority before submitting to the competent court a request to open any bankruptcy or judicial filing procedures for it.

The draft amendment to the Financial Market Institutions Regulations also included the addition of a general provision stipulating that the funds and assets of clients may not be included in the bankruptcy assets of the financial market institution, in the event of the bankruptcy of a financial market institution that holds funds and assets of clients or manages investment funds; This is in order to confirm that it is not permissible for the financial market institution, the bankruptcy trustee, or any other person to include those funds and assets in the bankruptcy assets, as well as to ensure that the clients’ right to claim them is not suspended at any stage of the bankruptcy procedures.

The draft also included the addition of a general provision confirming the Authority’s authority to direct the Capital Market Institution to take any measures it deems necessary under the Capital Market Law and its Implementing Regulations to enhance the protection of funds and assets of the Capital Market Institution’s clients, including the full completion or transfer of any pending business. To another financial market institution, and take the necessary measures to transfer the funds and assets of its clients and protect their rights

It is expected that the proposed amendments will reflect the strengthening of investor protection, and the development of everything that would enhance the confidence of participants in the financial market in support of its growth and prosperity.

The Capital Market Authority stated that the comments of those interested and concerned will be the subject of care and study, with the aim of approving the final version of the project, and comments can be expressed through the following means:

The unified electronic platform for surveying the opinions of the public and government agencies affiliated with the National Competitiveness Center (a survey platform) through the electronic link: (istitlaa.ncc.gov.sa).