A new project to organize simplified investment funds in Saudi Arabia

I put off The Capital Market Authority Simplified Investment Funds Instructions Project, and amendments to the list of terms used in the authority’s regulations and bases via the platform "reconnaissance"With the aim of organizing the registration of simplified investment funds, offering their units, management and operations, and supervising all related activities within the Kingdom. Units for any losses resulting from fraud, neglect or negligence, and are obligated to fully commit to the relevant regulations and carry out its tasks in the interest of the unit owners. Evaluating and pricing assets according to declared and clear policies, and setting effective mechanisms to monitor risk and evaluate them periodically not less than once annually, in addition to applying integrated programs to monitor matching and commitment and providing the Capital Market Authority with its results whenever it is requested. Investment and their operation. For unit owners upon request for free. Providing it to the authority on request." target ="_Blank"> Investment While it was not mentioned, with the need for investment decisions to be consistent with the goals specified in the terms and conditions of the fund. /> It was also permissible to assign third parties inside or outside the Kingdom to manage the fund’s investments, operate or distribute it, provided that they are licensed and qualified entities and under the supervision of supervisory control of Saudi standards, and that the assignment is made under clear written contracts. The box. It also organized the provisions of the insulation of the fund manager, replace it or its voluntary withdrawal, in addition to the controls of the termination of the fund and its liquidation in line with the provisions of the investment funds list, while obliging the manager to notify the commission in writing when finishing or liquidating. The units in the secondary market for other investors. It is permissible to transfer Ownership of units in the secondary market for other customers. The authority also granted the same authority to agree to offer simplified investment funds in special cases based on a request submitted by a financial market institution, provided that it is obligated to the controls it determines. And the procedures for offering funds obligated the Capital Market Authority the Fund’s manager not to launch its units except after the fulfillment of a set of basic organizational requirements that guarantee the full compliance of the regular procedures and the enhancement of transparency in the offering. Related offering documents. Or its executive regulations, it has the right to conduct the necessary surveys, request additional information, or suspend the offering temporarily until the completion of the requirements. Notice that it does not refrain from offering the fund’s units. The fund has taken the form of the facility with special purposes, so its units may not be launched only after documenting the statute of this facility in accordance with the requirements of the authority. />
The Authority emphasized that the new instructions do not violate the provisions of the financial market system or its executive regulations, including the list of market behaviors, the list of financial market institutions, the international license regulation for the practice of securities, the Securities Business Regulations, the rules governing the facilities of special purposes. The operator, the secretariat, the distributor, and the advice provider in the Kingdom, the full commitment to the provisions of the new instructions, while the commission itself granted the authority to exempt any person subject to these instructions from applying any of its provisions in whole or in part in accordance with a request to receive it or on the initiative. The measures taken against him before the competent committee.

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