The Capital Market Authority (CMA) called upon all interested persons and participants in the capital market to share their feedback on developing the disclosure requirements for investment funds, through the Draft Regulatory Framework for Amending the Investment Funds Regulations, the Real Estate Investment Funds Regulations, and the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority. The consultation period will last for 30 calendar days, ending on 07/06/1448, corresponding to 17/11/2026.
The proposed Draft aims to enhance the level of transparency and improve the supervisory efficiency, contributing to improving the quality of information available to investors and supporting investment decisions made on clear foundations.
Most notably, the Draft consolidates the continuing obligations relating to disclosures and announcements in a single location within the Regulations, enhancing the clarity of the regulatory framework for those requirements.
The proposed Draft also aims to develop a number of requirements related to investment fund disclosures, including the requirements for disclosure of conflicts of interest, specific events, the contents of the annual and periodic reports, and the Fund's Terms and Conditions.
At the level of information required in annual reports and periodic reports, the draft includes adding details of dividends distributed to the unitholders, clarifying the sources and nature of cash distributions, including, but not limited to, distributions derived from the fund's investments and capital gains realized from the sale of its assets. It also includes providing details of the top 10 investments of the fund, including the type of asset invested in, the name of the counterparty, and the investment percentage of the fund's net asset, in addition to disclosing the revenue of each real estate asset and its percentage of the fund's net asset value, as well as the sectoral distribution of real estate assets, enabling unitholders to make their investment decisions on clearer grounds.
With respect to annual reports, the Draft also includes adding a detailed analytical statement of the fund's performance, including an assessment of its performance compared to the benchmark index, an explanation of the factors affecting performance, expectations regarding the future performance of the fund, and the risk assessment report for the public fund.
Among the aspects addressed by the proposed Draft is the unification of publication channels to be through the Exchange's website as a mandatory and primary channel for disclosure, while allowing publication on additional websites, enhancing investors' ease of access to information and raising the level of transparency.
The CMA emphasized that the comments from the public shall be taken into full consideration for the purpose of approving the final proposed Draft, which in turn shall contribute to the aim of enhancing and developing the regulatory environment. Opinions and comments can be received through any of the following:
- The Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the Saudi Competitiveness & Business Center through the following link: istitlaa.ncc.gov.sa
- The prescribed form through the following email: Laws.Regulations@cma.gov.sa
The Draft can be reviewed through the following link:
The Draft Amendments to the Investment Funds Regulations, the Real Estate Investment Funds Regulations, and the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority
Prescribed form for providing comments
