Based upon the Capital Market Law issued by Royal Decree No. (M/30) dated 2/6/1424H, and reference to the Financial Technology Experimental Permit Instructions issued by CMA in 10/01/2018, which aims to provide a regulatory framework that is conducive for the innovation of Financial Technology (FinTech) in the capital market within the Kingdom. In relation to this, the CMA Board of Commissioners issued its resolution to grant Wahed Capital a Financial Technology Experimental Permit (ExPermit) to experiment Robo-Advisory Service.
Based on this permit, the company will be able to experiment the Robo-Advisory Service which allows clients to get advice on securities or investment scheme through direct access to automated online platform (or application). Additionally, The company is able to offer automated online discretionary investment management, where the clients can automatically make investments through the platform or the application by giving the management of the company the responsibility to invest on the client's behalf, within parameters and mandates agreed with the client, on an ongoing basis. The service is provided through an electronic online platform (or application) owned and monitored by the management of the company.
CMA would like to highlight that this permit coincides with the beginning of ExPermit for the Second batch of FinTech innovations which was announced in 7/10/2018, related to securities businesses that fall under the CMA's supervision. Later this year, the CMA will reopen the door for the third batch of applications for FinTech ExPermits.