The Capital Market Authority (CMA) warns all institutions who are not Authorised Persons authorised by the CMA or an Exempt Person under the Securities Business Regulations, against carrying out securities business in Saudi Arabia. Conducting securities business without a license shall be considered violating the relevant provisions of the Capital Market Law and its Implementing Regulations and shall be subject to sanctions.
The CMA has also called upon investors in securities to limit their dealings to CMA Authorised Persons only and not to deal with persons who are not authorised by the CMA to conduct securities business - whether they are individuals or institutions.
The CMA further reminded investors to verify that the institutions they are dealing with are authorised by the CMA to conduct securities business, adding that persons who are not authorised by the CMA are not permitted to collect money or conduct any securities business such as dealing in securities, managing securities in circumstances involving the exercise of discretion, introducing parties in relation to securities business, advising on corporate finance business or otherwise acting to bring about a deal in a security transaction, advising a person on the merits of a security or exercising any right to deal conferred by a security, etc.
The CMA also emphasised that contractual agreements which result in the practice of securities business by a person not authorised by CMA to conduct such business in the Kingdom are considered to be void.
Investors can check the list of persons authorised by the CMA to conduct securities business in the Kingdom on the CMA’s website at www.cma.org.sa and are urged to immediately report any incidence of securities business carried out by an individual or institution who are not authorised by the CMA to conduct such business.