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Article 4: Information Required in the Investment Account Opening AgreementIn addition to the terms of business with clients' requirements mentioned in the Capital Market Institutions Regulations, the investment account opening agreement must include, as a minimum, the following:…
c) An undertaking by the client of his commitment to update his data and information or confirm, upon the capital market institution's request, that there are no changes to such data and information at the end of the relevant time period specified by the capital market institution (provided that such period does not exceed 3 years); and provide information of his renewed identification documents upon the expiration of the original identification documents. The client shall provide an acknowledgment of his awareness that the capital market institution will freeze his investment account upon his failure to meet such commitment, and also provide an undertaking to adhere to the Capital Market Law and its Implementing Regulations, and other laws and regulations of the Kingdom, especially the Anti-Money Laundering Law and its Implementing Regulations, and the Combating-Terrorism Crimes and its Financing Law and its Implementing Regulations.
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c) An undertaking by the client of his commitment to update his data and information or confirm, upon the capital market institution's request, that there are no changes to such data and information at the end of the relevant time period specified by the capital market institution pursuant to the rules and policies approved by the capital market institution in accordance with the level of risks associated with the client; and the client's commitment to provide information of his renewed identification documents upon the expiration of the original identification documents. The client shall provide an acknowledgment of his awareness that the capital market institution will freeze his investment account upon his failure to meet such commitment, and also provide an undertaking to adhere to the Capital Market Law and its Implementing Regulations, and other laws and regulations of the Kingdom, especially the Anti-Money Laundering Law and its Implementing Regulations, and the Combating-Terrorism Crimes and its Financing Law and its Implementing Regulations.…
Article 6: Instructions for Opening Investment Accounts for Natural Persons…d) Opening Investment Accounts for Foreign Natural Persons not Residing in the Kingdom
To open an investment account for a foreign natural person not residing in the Kingdom for the purpose of investing in the permitted securities in accordance with the Capital Market Law and its Implementing Regulations and the related instructions issued by the Authority, the capital market institution must obtain and verify the client's valid passport information.
Article 6: Instructions for Opening Investment Accounts for Natural Persons…d) Opening Investment Accounts for Foreign Natural Persons Residing in the GCC Member States
To open an investment account for a foreign person residing in a GCC member state for the purpose of investing in the permitted securities in accordance with the Capital Market Law and its Implementing Regulations and the related instructions issued by the Authority, the capital market institution must obtain and verify the valid Resident Identity information and passport information.
e) Opening Investment Accounts for Foreign Natural Persons not Residing in the Kingdom or in the GCC Member States
To open an investment account for a foreign natural person not residing in the Kingdom or in a GCC member state for the purpose of investing in the permitted securities in accordance with the Capital Market Law and its Implementing Regulations and the related instructions issued by the Authority, the capital market institution must obtain and verify the client's valid passport information.
Article 6: Instructions for Opening Investment Accounts for Natural Persons…e) Special Provisions for Opening Investment Accounts for Natural Persons…2) Opening an Investment Account for Persons Under the Age of (18) Hijri Calendar Years:…d. If the client is under the age of (18) Hijri calendar years and under legal guardianship, the capital market institution must obtain and verify a copy of the guardian's deed issued by the competent court and comply with all its provisions.…3) Opening an Investment Account for an Incapacitated Person…c. A copy of a final decision or a decision subject to expeditious execution issued by the competent court which illustrates that the client for whom the investment account is to be opened is considered incapacitated must be obtained and verified, and the capital market institution must comply with all its provisions.…
5) Opening Investment Accounts for the Interdicted Person…
c. A copy of a final decision or a decision subject to expeditious execution issued by the competent court must be obtained and verified, and the capital market institution must comply with all its relevant provisions.…
Article 6: Instructions for Opening Investment Accounts for Natural Persons…f) Special Provisions for Opening Investment Accounts for Natural Persons…2) Opening an Investment Account for Persons Under the Age of (18) Hijri Calendar Years:…
d. If the client is under the age of (18) Hijri calendar years and under legal guardianship, the capital market institution must obtain and verify information of the guardian's deed issued by the competent court and comply with all its provisions.…
3) Opening an Investment Account for children in need of carea. An investment account for a child residing in one of the housing centers, with a substitute (foster) family, in a charity or an association caring for orphans, or in a rehabilitation center under the supervision of the Ministry of Human Resources and Social Development is opened by the authorised signatories to open the investment account as per the letter of the Ministry of Human Resources and Social Development, provided that the investment account is under the name of the child and operated by the authorised signatories to operate the investment account as per the letter of the Ministry of Human Resources and Social Development. b. The capital market institution must obtain information of the following documents and verify them: - A letter from the Ministry of Human Resources and Social Development containing the child's information, the names of the authorised signatories to open and operate the investment account, and the details of the substitute (foster) family (if the child resides with substitute (foster) family).- The child's birth certificate information, and information of the valid identification document of the authorised signatories to open and operate the investment account.
c. The capital market institution must carry out customer due diligence measures in relation to the authorised signatories to open and operate the investment account, and the authorised signatories to open and operate the investment account when acting on behalf of the client referred to in subparagraph (a-3) of paragraph (e) of this Article shall comply with all legal responsibilities applicable to such client.
4) Opening an Investment Account for an Incapacitated Person… c. Information of a final decision or a decision subject to expeditious execution issued by the competent court which illustrates that the client for whom the investment account is to be opened is considered incapacitated must be obtained and verified, and the capital market institution must comply with all its provisions.…6) Opening Investment Accounts for the Interdicted Person …c. obtain information of a final decision or a decision subject to expeditious execution issued by the competent court must be obtained and verified, and the capital market institution must comply with all its relevant provisions …
The proposed amendment to paragraph (e) of Article (6) of the Investment Accounts Instructions aims to regulae the requirements for opening investment accounts for children in need of care.
Also, the amendment aims to removing the requirement for capital market institutions to obtain copies of documents, and instead suffice with obtaining the information of those documents.
Article 7: Instructions for Opening Investment Accounts for Legal Personsa) Opening Investment Accounts for Saudi Companies and Companies from GCC Member States…2) Unless the company is listed on the Exchange, the capital market institution must verify that the company has what provides that it is permitted to invest in the fields it is intending to invest in.3) To open an investment account for a Saudi or GCC company, the capital market institution may use the guidance list of documents provided in Annex (1) of these Instructions by obtaining information of such documents and verifying them.
Article 7: Instructions for Opening Investment Accounts for Legal Persons
a) Opening Investment Accounts for Saudi Companies and Companies from GCC Member States…4) When opening an investment account for a listed company on the Exchange (excluding banks and insurance companies) or an affiliate of the listed company included in its consolidated financial statements, the capital market institution must comply with the following additional conditions:- The listed company's investment in securities listed on the Exchange shall be based on a Board of Directors' resolution of the listed company and the company that the investment account is to be opened for (if it is an affiliate of that company). Such resolution shall also determine the investment controls, and prior to opening the investment account, the capital market institution must obtain and verify a copy of the resolution.…
a) Opening Investment Accounts for Saudi Companies and Companies from GCC Member States…4) When opening an investment account for a listed company on the Exchange (excluding banks, insurance companies, finance companies and capital market institutions) or an affiliate of the listed company included in its consolidated financial statements, the capital market institution must comply with the following additional conditions:- The listed company's investment in securities listed on the Exchange shall be based on a Board of Directors' resolution of the listed company and the company that the investment account is to be opened for (if it is an affiliate of that company). Such resolution shall also determine the investment controls, and prior to opening the investment account, the capital market institution must obtain and verify information of the resolution.…
Article 7: Instructions for Opening Investment Accounts for Legal Persons…b) Opening Investment Accounts for Foreign Legal Persons1) The capital market institution may open an investment account for a foreign legal person which has a license from the Ministry of Investment, and the capital market institution must obtain and verify information of that license and the commercial register.
Article 7: Instructions for Opening Investment Accounts for Legal Persons…e) Opening Investment Accounts for Non-profit Organisations in the Kingdom:When opening an investment account for a Non-profit Organisation in the Kingdom, the capital market institution must obtain copies of the following documents and verify them:
- The license issued by the competent authority.
- The bylaws that have an express provision permitting the Non-profit Organisation to invest in securities, and if the Non-profit Organisation's bylaws do not explicitly state that, the capital market institution must obtain a letter from the Non-profit Organisation licensing authority stating its approval to invest in securities.
- The Board of Directors' resolution approving the opening of the investment account and assigning the authorised signatories to operate the investment account.
Article 7: Instructions for Opening Investment Accounts for Legal Persons…e) Opening Investment Accounts for Non-profit Organisations in the Kingdom:When opening an investment account for a Non-profit Organisation in the Kingdom, the capital market institution must obtain and verify information of the following documents:
- What provides that it is permitted for the organization to invest in the fields it is intending to invest in.
The proposed amendment of this subparagraph of paragraph (e) of Article (7) of the Investment Accounts Instructions aims to facilitating the process of opening investment accounts for non-profit organizations.
The proposed amendment to the subparagraphs of paragraph (f) of Article (7) of the Investment Accounts Instructions aims to facilitating opening investment accounts for endowments.
The proposed addition of subparagraph (2) to paragraph (f) of Article (7) of the Investment Accounts Instructions aims to clarifying the requirements for opening investment accounts for establishment owned by endowments.
Article 9: Transactions on the Investment Account …d) The capital market institution must not enable money transfer transactions from an investment account of a client to an investment account of another client unless the transfer transaction is upon any of the following:
1) Instructions of the competent entity or judicial authority through the Authority.
2) Any other situation approved by the Authority.
Article 9: Transactions on the Investment Account …
e) The client's investment account must be linked to one or more bank accounts in the client's name. Any outgoing transfer of money must not be accepted unless it is to one of those bank accounts, with the exception of the following:
1) Transfers made for the purpose of liquidating the investment account for the benefit of the heirs of the deceased client.
2) Transfers made between the minor and his guardian.
3) Any other situation approved by the Authority.
Article 11: Appointment of Court-Appointed Receiver over the Investment AccountWhen a court-appointed receiver is appointed over an investment account, the capital market institution must comply with the following: a) The capital market institution, before permitting a judicial receiver to have access to an investment account, must obtain and verify a copy of a final decision or a decision subject to expeditious execution issued by the competent judicial authority that includes the appointment of judicial receiver and its authorities, and also obtain and verify information of the judicial receiver's valid national identification card if he is a natural person, or a copy of the commercial register of the judicial receiver and the information of the national identification card of its representative if it is a legal person.
Article 11: Appointment of Court-Appointed Receiver over the Investment AccountWhen a court-appointed receiver is appointed over an investment account, the capital market institution must comply with the following: a) The capital market institution, before permitting a judicial receiver to have access to an investment account, must obtain and verify information of a final decision or a decision subject to expeditious execution issued by the competent judicial authority that includes the appointment of judicial receiver and its authorities, and also obtain and verify information of the judicial receiver's valid national identification card if he is a natural person, or information of the commercial register of the judicial receiver and the information of the national identification card of its representative if it is a legal person.
Article 14: Updating the Investment Accounts Informationa) The capital market institution shall require his clients to update the information that were provided when opening the investment account as and when there are any changes to the original information provided or at least once every three years from the date of opening the investment account or date of last update, and the capital market institutions must maintain policies and procedures to fulfill this requirement.…
Article 14: Updating the Investment Accounts Information
e) Upon the final exit from the Kingdom or from a GCC member state of the foreign client residing in the Kingdom or in a GCC member state, the capital market institution must require the client to update the investment account information by obtaining and verifying the client's valid passport information, and what proves the client’ final exit from the Kingdom or from a GCC member state.
Article 16: Instruction on the Attachment of Investment Accounts and Removing the Attachment of them and Disclosure of their Information and Execution upon thema) Provisional Attachment of the Investment Account and removing the attachment of it and Disclosure of its Information and Execution upon them Upon the Authority's Request…2) When the capital market institution receives a request from the Authority to disclose any information related to an investment account of any of its clients, the capital market institution must provide the Authority with the requested information, or inform the Authority that the requested information do not belong to a client of the capital market institution, in a maximum period of (3) business days, unless the Authority specifies otherwise.…6) When the capital market institution receives a request from the Authority to provisionally attach the investment accounts of a client, the capital market institution must attach the investment account and immediately provide the Authority with information of the attached investment accounts, or immediately inform the Authority that the investment accounts requested to be attached do not belong to a client of the capital market institution.…8) The capital market institution must not remove the provisional attachment of any investment account that was attached based on subparagraph (a-5) of this Article until the capital market institution receives a request from the Authority. When the capital market institution receives a request from the Authority to remove the provisional attachment of the investment accounts of a client, the capital market institution must immediately remove the attachment and immediately provide the Authority with information of the investment accounts of which the attachment was removed.
9) When the capital market institution receives a request from the Authority to execute upon the investment accounts of a client, the capital market institution must, immediately, execute and provide the Authority with information of the executed upon investment accounts.…
Article 16: Instruction on the Attachment of Investment Accounts and Disclosure of their Information…c) Disclosing the Investment Account information, Blocking it, and Liquidating it Upon the Client's Being Deceased…2) When any person requests to be provided with information of the investment accounts of the deceased client, the capital market institution must provide him in writing with detailed and clear information of the investment accounts of the deceased client after verifying the identity of that person and ensuring that he is one of the heirs or attorney-in-fact of one of them. The capital market institution must also obtain and verify the valid identification document information of that person, a copy of the power of attorney if that person was an attorney-in-fact of the heirs or one of them, a copy of the death certificate of the deceased client, and a copy of the determination of heirs.…
4) The capital market institution must not liquidate the investment account for the benefit of the heirs unless all heirs, guardians of the minor heirs, or their attorneys-in-fact are present and provide copies of the heirs determination deed, the guardianship deed for the minor heirs (if there is minor heirs) and power of attorney (if any) and verify them. The capital market institution must also obtain and verify the identification document of the guardian, attorney-in-fact, and heirs who have no guardian or attorney-in-fact, and if there is a judicial deed for the distribution of the inheritance issued by the competent court, the capital market institution must obtain a copy of the deed and verify it.5) If the heirs of the deceased client are non-resident foreigners, the capital market institution must not liquidate the investment accounts of the deceased client until the requirements aforementioned in sub-paragraph (4) are fulfilled, and ensure, if the documents were issued outside the Kingdom, that they are authenticated by the Saudi Embassy or Consulate at the issuing country and the Ministry of Foreign Affairs in the Kingdom.…
Article 16: Instruction on the Attachment of Investment Accounts and Removing the Attachment of them and Disclosure of their Information and Execution upon them…c) Disclosing the Investment Account information, Blocking it, and Liquidating it Upon the Client's Being Deceased…2) When any person requests to be provided with information of the investment accounts of the deceased client, the capital market institution must provide him in writing with detailed and clear information of the investment accounts of the deceased client after verifying the identity of that person and ensuring that he is one of the heirs or attorney-in-fact of one of them. The capital market institution must also obtain and verify the valid identification document information of that person, information of the power of attorney if that person was an attorney-in-fact of the heirs or one of them, information of the document establishing death of the deceased client, information of the determination of heirs.…
4) The capital market institution must not liquidate the investment account for the benefit of the heirs until obtaining information of the document establishing death, information of the determination of heirs, information of the guardianship deed for the minor heirs (if there is minor heirs) and power of attorney (if any) and verify them. The capital market institution must also obtain and verify information of the identification document of the guardian, attorney-in-fact, and heirs who have no guardian or attorney-in-fact, and if there is a judicial deed for the distribution of the inheritance issued by the competent court, the capital market institution must obtain information of the deed and verify it.5) If the heirs of the deceased client are non-resident foreigners, the capital market institution must not liquidate the investment accounts of the deceased client until the requirements aforementioned in sub-paragraph (4) are fulfilled, and ensure, if the documents were issued outside the Kingdom, that the documents bear “APOSTILLE" certificate or they are authenticated by the Saudi Embassy or Consulate at the issuing country and the Ministry of Foreign Affairs in the Kingdom.…
The proposed amendment to subparagraph (2) of paragraph (c) of Article (16) of the Investment Accounts Instructions aims to allowing the acceptance of any documents that prove death and the determination of heirs to request the disclosure of the investment account information upon the death of the client being deceased.
The proposed amendment to subparagraph (4) of paragraph (c) of Article (16) of the Investment Accounts Instructions aims to easing the requirements for the liquidating the investment account for the benefit of the heirs by allowing the capital market institution to verify their identities instead of requiring their physical presence.
The proposed amendment to subparagraph (5) of paragraph (c) of Article (16) of the Investment Accounts Instructions aims to allowing the capital market institutions to accept documents that bear an “APOSTILLE" certificate.
The proposed addition of subparagraph (5) to paragraph (a) of Article (6) of the Rules for Foreign Investment in Securities aims to allowing a foreign natural person residing in one of the Cooperation Council for the Arab States of the Gulf to invest in the shares listed on the Main Market.
The proposed addition of subparagraph (6) to paragraph (a) of Article (6) of the Rules for Foreign Investment in Securities aims to allowing a foreign natural person who has previously resided in the Kingdom or in one of the Cooperation Council for the Arab States of the Gulf to invest in the shares listed on the Main Market.
Last update: 04 November 2024
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