In continuation to the Capital Market Authority's efforts to develop the capital market, provide new financial instruments in the local market and diversify the investment opportunities in it, and seeking to make the capital market environment more stable, and in line with Saudi Arabia’s Vision 2030, and based on the Capital Market Law issued pursuant to the Royal Decree No. (M/30) Dated 02/06/1424 H, the CMA Board issued its Resolution to publish the draft of the instructions on Closed-Ended Investment Traded Funds on the Authority’s website, to obtain the public, specialists and interested parties' views for a period of 2 weeks ending on 21/06/1439H corresponding to 09/03/2018G. These proposed amendments aim is to regulate the offering, registration, approving and listing of the Closed-Ended Investment Traded Fund units. In addition to its management, operation, and supervision over its relevant activities in the kingdom..
The most prominent provisions of the draft instructions are found in: The unitholder's right to exercise all rights in relation to the units including, but not limited to, the right to vote at meetings of unitholders, allowing the direct listing of the closed-ended investment fund in the market if it has met the requirements of these instructions, provided that a request of such is submitted to the Authority, and that its approval is obtained, setting out the obligation to disclose all expenses of establishing and offering of the Closed-ended Investment Traded Funds units and conditioning that the minimum value of the total asset of the fund must be no less than SAR 500 million at establishment.
It's worth mentioning that the Instructions were drafted in light of the best international practices in this regard. In addition, the Authority has coordinated with the concerned authorities in a manner that help in achieving the hoped objectives of these instructions., as the Authority attaches great importance to the asset management industry as one of the main securities businesses that the Authority regulates. The asset management industry contributes to the provision of diversified investment products, professional management of customer assets, and the enhancement of professional practices and institutional behavior in the market.
Moreover, the Authority, with full gratitude, would like to receive these opinions and remarks through any of the following channels:
- Email (Laws.Regulations@cma.org.sa);
- Fax number (+966114906460); or
- Mail address (P.O. Box 87171 Riyadh 11642, CMA Deputy for Legal Affairs and Enforcement – Laws and Regulations Department).
To be submitted no later than 21/06/1439H corresponding to 09/03/2018G. All opinions and remarks will be taken into full consideration in order to finalize the instructions draft.
And The draft Instructions can be viewed via the following link:
Publishing the Draft of The Instructions on Closed-Ended Investment Traded Funds
