JEDDAH — The Saudi Capital Market Authority Board approved on Monday the Investment Accounts Instructions after publishing the Draft Instructions on the CMA's official website for 30 days, and reviewing the concerned and interested parties' comments and observations.
At the publication of the Draft Instructions on the CMA`s official website, the CMA emphasized that all comments and observations received from the public will be reviewed and taken into consideration. The CMA received the comments and observations from 10 parties which focus on the definitions of the investment account, freezing of the investment account and the GCC legal person. In addition, the comments relate to the opening of the investment account and relevant required documents, also, the transfers to and from the investment account, the required updates, freezing and closing the investment account.
The Investment Accounts Instructions comprise 17 articles regarding several aspects of investment accounts such as the mechanism on how to accept clients, availability of specific data to open an investment account, instructions of opening and operating the investment account, transfers from and to the investment account, power of attorney on the investment account, appointment of a receiver to open and operate the investment account, closing the investment account, updating the investment account`s data, freezing of the investment account, and the instructions for blocking the investment account and disclosing their information.
The Instructions also include the specifications to open investment accounts for natural persons (under the age of (18) years, incompetent, special needs and others) as well as legal persons (Saudi and GCC companies) and foreign legal persons, qualified foreign investor or approved client, government funds, non-profit organization in the kingdom, opening investment accounts for endowments, and international organizations.
As stated in the Instructions, in order for the Authorised Person to accept any client to provide services in securities related to dealing, managing and custody, the client must sign the investment account opening agreement that includes all information mentioned in Articles (3), (4), (6) and (7) of the Instructions.
When the Instructions require the AP to obtain the approval of the CMA for opening an investment account, the AP shall first obtain all required information and documents to open the account and explain in the copy of every document the reason for such requirement, then send such documents to the CMA by the AP`s CEO or his representative including a request of approval of the CMA. — SG
