المملكة: New regulatory rules for practicing non-securities financial advice

The rules stipulate that it is not permissible to practice the profession of financial consulting for anything other than securities except after obtaining a regulatory license, while allowing the licensed public accountant to practice the accounting profession by providing financial consulting services without the need for a license. Independent.

A special register for the licensee

The Authority explained that a special register for licensees will be created, which includes basic licensing data, including the name, ID number, date of issuance and expiration of the license, data on previous licenses, in addition to the name of the office or professional company through which the licensee practices his activity, and data of partners if the practice is through a professional company.

The rules set the requirements for obtaining a license, the most prominent of which is dedication to practicing the profession, and that the applicant must be of full Saudi nationality. Eligibility, and holding a bachelor’s degree or a higher qualification in one of the finance, accounting, or finance specializations or their branches, or a diploma in one of the administrative sciences specializations or other specializations approved by the Authority, provided that 91 academic hours are completed in accounting, finance, finance, or their equivalent, in addition to passing the qualifying and training programs determined by the Authority.

The rules permit licensing for those who have no less than five years of professional experience in the fields of auditing, accounting, or finance, whether in government agencies, the private sector, or the non-profit sector. The applicant must not have been convicted of a crime against honor or trust, unless he has been rehabilitated.

Licensing for part-timers

The Authority made licensing available to part-timers under the same conditions, provided that the period of practicing the profession does not exceed three years, including all periods of practice.

The rules indicate that the license application is submitted in accordance with the forms and procedures approved by the Authority, provided that the data is complete. And the documents, provided that the Authority decides on the application within a period not exceeding 30 days from the date of its completion, while obliging the applicant to complete any deficiencies within this period, otherwise the application will be considered as if it did not exist.

She pointed out that the Authority evaluates the applications submitted during the fiscal year and issues its decision to license or reject within a specific period, with the applicant having the right to appeal the rejection decision before the Administrative Court.

Scope of services Covered

The rules specified the scope of services covered by the profession, excluding businesses subject to special licenses, legal accounting and auditing services, or services related to securities business.

It stressed that the provision of any other professional services shall be in accordance with a decision issued by the Authority’s Board of Directors.

The license is effective from the date of its entry in the register, with the licensee being obligated to apply for renewal of the license no less than 90 days before the expiry of its term. day.

Commitment to transparency and professional accuracy

The rules obligated licensees to adhere to the relevant systems, regulations and decisions, not to provide services outside the scope of specialization, to keep work papers and report records for a period of no less than five years, and to practice professional work personally without authorization to sign.

It stressed not to use or issue any inaccurate or misleading reports or documents, and the necessity of adhering to transparency and professional accuracy, while highlighting Licensing at the workplace, and professional companies being subject to the Companies Law and related regulations.

Case of license revocation

The rules stipulate cases of license revocation, including the loss of one of the conditions of the license, or the licensee requesting cancellation after terminating his obligations, or in the event of death.

It also obliges licensees to inform the Authority of any change in contact information within 30 days, and to provide annual data that enables the Authority to monitor the level and quality of professional practice and services provided.

/>With regard to suspension or suspension, the rules clarified the mechanisms for dealing with cases of temporary or final cessation of practicing the profession, and the procedures that must be followed to protect the rights of clients and third parties, including inventorying the pending business and assigning another licensee or a certified public accountant to liquidate them when necessary.

Penalties resulting from violations

The rules included specifying the penalties resulting from violations, which include warning, suspension from practicing the profession for a period not exceeding one year, or withdrawal of the license, without Violating any more severe penalties prescribed in other systems.

It indicated the formation of a specialized committee to look into violations and apply penalties, provided that its decisions are final, with a grievance being made available to the Administrative Court.

It also permitted the licensee whose license was withdrawn to apply for re-license after three years, in accordance with the approved statutory conditions and procedures.