His Excellency Mr. Mohammed bin Abdullah Elkuwaiz, Chairman of the Capital Market Authority expressed, in his name and on behalf of the employees of the Authority, gratitude and appreciation to the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al-Saud, and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Deputy Prime Minister and Minister of Defense, for the Council of Ministers' issuance of the resolution approving the amendment of the Capital Market Law issued by Royal Decree no. (M/30) dated 02/06/1424H.
Mr. Elkuwaiz announced that these amendments aims to enhance the role of the Authority in investor protection, in addition to keeping up with the developments in the international capital markets and contribute in developing the operating institutions in the capital market. His Excellency also stated that the Authority places the responsibility to review and continuously improve the regulatory environment on the top of its priorities, it believes in the importance and impact of that on the growth and development of the Capital Market and its operating institutions in order to achieve the Authority’s vision for the Saudi Capital Market to become the leading market in the Middle East and one of the top ten markets in the world.
Mr. Elkuwaiz stated that the amendments will aid in developing capital market infrastructure institutions and reducing risks, in addition to enabling new classes of securities and attracting foreign investment to the capital market by granting the Authority the power to authorize the capital market infrastructure institutions, which include the Exchange, the Depositary Center and the Clearing Center, in addition to regulating the securities clearing center and activating its role in performing its duties and obligations within the capital market infrastructure institutions.
Mr. Elkuwaiz further added that the amendments will help develop the mechanisms for the compensations of affected investors in the Capital Market by developing the mechanism of the class action suit and activate the affected investors’ compensation funds, and facilitating the provision of the affected persons with the due compensations and expedite the procedures in this regard. His Excellency also stated that the amendments will enhance the efficiency and attractiveness of the Capital Market and raise the level of its soundness and integrity. The amendments will also aim towards achieving fairness in securities transactions, by amending some of the penalties stipulated in the Capital Market Law and granting the Authority some additional powers to address violations in a manner that will enhance the efficiency of deterrence.
It’s worth mentioning that the Authority made its suggestions to amend the Capital Market Law in line with its objectives, responsibilities and initiatives entrusted to it to achieve the objectives and goals of the Saudi Vision 2030, the Financial Sector Development Program, and Financial Leadership Program, taking as guidance the best international regulations and practices. The Authority also took into consideration the recommendation of the Financial Sector Assessment Program (FSAP), which was carried out over the financial sector in Saudi Arabia, in addition to taking into account enhancing the level of compliance with the standards of the International Organization of Securities Commissions (IOSCO), especially where the Kingdom is an official member in the organization’s committees.