Are there punishments for people who practice brokerage in the stock market without obtaining a license?
Practicing brokerage in the stock market requires a license from CMA. Whoever practices brokerage without a license is subject to punishment as per Article 60 of the Capital Market Law. To view the full article, you can go back to the Capital Market Law.
Can a QFI invest in fund not managed by him and invest directly in the Saudi Exchange?
Who is responsible for deducting the withholding tax on dividends distributed to QFIs?
Listed companies are responsible for deducting the withholding tax from dividends that they distribute to QFIs.
Does the fact that I am unaware of CMA’s regulations and instructions exempts me from questioning?
The Rules define GCC citizens as citizen meeting either of the following conditions:
A natural person holding the citizenship of one of the Cooperation Council for the Arab States of the Gulf countries.
A legal person that (i) capital of which is majority owned by citizens or governments of the Cooperation Council for the Arab States of the Gulf, and (ii) holding the citizenship of one of the Cooperation Council for the Arab States of the Gulf countries.
Can QFI deal with a GCC portfolio manager?
Yes, the QFI can deal with a GCC portfolio manager for the management of its investments in the Saudi Stock Exchange.
Can a portfolio manager be a capital market institution licensed by the Authority?
Yes, the QFI can deal with portfolio manager who is licensed by the CMA.
How can I follow up with the developments of the investment fund that I am subscribed to?
Yes, the QFI can deal with more than one portfolio manager at the same time, either if it was an AP authorised from the CMA or a foreign portfolio manager which includes a GCC portfolio manager, though, the QFI must notify the AAP when dealing with a new portfolio manager in accordance with Annex (3.1) of the Rules.
Is it possible for QFI to deal with another QFI to manage his investments in listed securities?
Yes, the QFI can deal with another QFI to manage his investments in listed securities and that does not prejudice the responsibility to abide by the law and its implementing regulations and market rules and its regulations, and other rules that are related.
What is the role of the assessing capital market institution ?
The AAP will assess the QFI’s registration request to ensure that the application complies with the requirements prescribed by the Rules, and then provide the CMA with a written notification of its determination with regard to the QFI registration request to the CMA.
What entity receives the investors’ complaints in CMA?
Yes, the applicant can re-apply and there is no specific time period which must lapse before the applicant can resubmit the application.
Are CRSD and ACRSC independent in their work?
A QFI may commence trading in any listed securities upon satisfying the following:
Holding a client account.
Holding an account with the Depositary Center.
Any conditions as may be imposed by the CMA.
The term "client account" is defined in the Glossary of Defined Terms Used in the Regulations and Rules of the CMA as: "an account at a local bank which is in the name of an authorised person and fulfills the conditions required by the Client Money Rules".
Should each QFI open a separate account in the Depositary Center?
Yes, every QFI shall open an independent account. After that, the QFI can open several investment portfolios that are linked to the account.
Can a QFI send trading orders through an international broker that is not qualified as a foreign investor?
If the international broker’s role is limited to sending orders issued by the QFI to the AP, then the international broker is not required to register as a QFI, provided that the international broker must have the authority to send such orders.
What are the costs of transferring securities from a Swap Agreement account to a QFI account?
The cost of transferring is 20 SAR for the shares of each listed company (not per share).
Does transferring securities from a Swap Agreement account to QFI account affect the market value of such securities?
Transferring shares from a Swap Agreement account to a QFI account does not affect the market value of the shares.
