How long does it take to transfer securities from a Swap Agreement account to a QFI account?
The shares shall be transferred within 2 business days from the date on which all the requirements were completed.
Can a QFI be the Foreign Counterparty under a Swap Agreements Framework?
Yes, a QFI can be the Foreign Counterparty in Swap Agreements, but a QFI cannot participate as ultimate beneficiary under the Swap Agreements Framework.
Who is responsible of complying with the investment limits and disclosure requirements when the QFI engages with foreign portfolio manager?
The QFI is responsible of complying with investment limits and disclosure requirements and abide by the Capital Market Law and its Implementing Regulations and the rules of the Exchange and other relevant laws.
Is there a special notification form with regards to the ownership in listed companies?
Yes, the notification shall be in accordance with a form prepared by the CMA, which may be viewed through the following link:
https://cma.org.sa/en/RulesRegulations/FormsSite/Pages/default.aspx
Can a QFI become a client of another capital market institution for the purpose of investing in listed securities?
Yes, a QFI can be a client of any other AP when investing in listed securities.
Can QFIs receive financing from local banks to fund their investments?
Yes, pursuant to the applicable procedures set forth by the CMA and the Saudi Arabian Monetary Agency, QFIs can receive financing from local banks to fund their investments.
Does the CMA's approval on the fund's terms and conditions constitute an exemption to the fund manager from complying with the provisions of the relevant Law and implementing regulations?
No, the fund manager shall continuously comply with the provisions of the relevant Law and implementing regulations even after the CMA's issuance of its approval on the fund's terms and conditions. Complying with the provisions of the relevant Law and implementing regulations is the fund manager's responsibility
Will exempting a fund manager from some provisions of the Regulation by the CMA result in exempting the fund manager of complying with the fund's terms and conditions before the unitholders?
No, unless the fund manager updates the fund's terms and conditions to reflect the content of CMA's exemption.
In light of the requirements of Article Forty-Eight of the Regulatory Rules and Procedures issued pursuant to the Companies Law relating to Listed Joint Stock Companies, is there a specific form of power to attend public and private assemblies and vote on
There is no specified proxy form; it may be in any form, provided that it is written and in accordance with the form set forth in annex (1) of the Regulatory Rules and Procedures Issued Pursuant to the Companies Law.
Who are the addresses in the Capital Market Institutions Regulations? What are its objectives?
The Authorised Persons Regulations addresses all of the persons authorised by the Authority to carry out securities businesses, and the registered persons of registrable functions who intend to apply for a license to carry out securities businesses and for registrable functions.
The Regulations aims to regulate the authorised persons and the registered persons who intend to obtain a license or a registration as well as specifying the procedures and conditions for obtaining the license or the registration, and the conditions for the maintenance of the license or the registration, to provide for the rules of conduct that authorised and registered persons must comply with when conducting their business, as well as the rules and provisions governing the conduct of business, and to set the systems and controls as well as the provisions relating to clients' money and assets.
What does carrying out securities business means?
A security business shall mean engaging in any of the activities of dealing, arranging, managing, advising, and custody by any person acting by way of business. The above mentioned activities are defined as follows:
Dealing: to deal insecurities as principal or agent including buying, selling, managing securities subscription and underwriting. Dealings are divided into three types:
- As principal.
- As agent.
- Underwriting.
Arranging: a person introduces persons in relation to securities business, provides consultations in corporate financing business or act in any form to execute a deal on securities.
Managing: a person manages securities belong to another person in cases require acting at discretion; it is divided into two activities:
- Managing investment funds.
- Managing clients' portfolios.
Providing consultations: a person provides consultation to another person on the advantages and risks of dealing in securities or exercising any rights resulted by securities.
Custody: a person takes custody of assets belong to another person including securities, or makes arrangements for other person to do so. This includes taking the necessary administrative procedures.
Is it required to obtain an authorisation for the management activity to offer investment fund units incorporated outside Saudi Arabia?
No need for an authorization for the management activity to offer investment fund shares incorporated outside Saudi Arabia, and it is required to obtain a authorized to practice the activity of dealing as agent.
In case the applicant is under establishment, in what capacity shall the application for the authorization be submitted to the Authority?
In this case, the authorisation application may be submitted by the founders or the controlling shareholders of the applicant if not yet incorporated.
When does the applicant subject to the provisions of the Authorised Persons Regulation?
Founders and controlling shareholders are subject to the provisions applicable to the applicant starting from the date of submitting the application.
Does an authorised person have to comply with the provisions set forth in the Authorised Persons Regulation?
Yes, an authorised person must comply to the provisions set forth in Authorised Persons Regulations, unless the Authority waives a provision of these Regulations in whole or in part as it applies to an authorised person either on the authorised person's request or on its own initiative.
