The Capital Market Authority Board has issued a decision to oblige Authorised Persons (financial institutions licensed by CMA to perform securities business) to apply additional requirements in order to improve their levels of disclosure. This should be effective by April 1st, 2016 to raise the levels of transparency and protect investors.
It was stated that the Authorised Person should have a website. Through it, announcements are posted and updated at least once a year. The announcements include: CMA’s approval of increasing or decreasing its capital, financial statements, Board of Directors Report ( for the AP licensed to conduct dealing, managing and custody business) in addition to the information that should be disclosed in accordance to Pillar 3 of the Prudential Rules (for the AP licensed to conduct dealing, managing and custody business).
Additional information should be disclosed by the APs on their official websites and updated whenever a change occurs. For example: securities business they are authorized to perform, commercial registration details, products and services provided and a list of the direct controllers, the organizational structure of the AP, senior executives and Board members’ names and their CVs, a list of the markets and stock exchanges in which it operates, customer service numbers and an explanation of the steps to file a complaint.
It is important to mention that the Authority, as part of its efforts to ensure the transparency of APs, has issued a decision to apply corporate governance on the Authorised Persons by the beginning of 2012. That is to enhance the supervisory procedures and increase the level of institutional work in addition to supporting the legal and regulatory entity for the market participants.
CMA has directed APs to establish the infrastructure of governance by setting the rules and policies needed and developing the governance policies of the AP and supervising its effectiveness and adjusted when needed. This includes restructuring the boards of directors to include independent members in order to activate the board of directors’ performance and assembling audit, nomination and remuneration committees in addition to issuing an annual report on the previous financial year.
A full list of Authorised Persons is on the official website of CMA where the activities licensed are listed for each person in order to avoid dealing with unauthorized persons or institutions.