Can a QFI invest in a fund not managed by him and invest directly in the Saudi Exchange?
Who is responsible for deducting the withholding tax on dividends distributed to QFIs?
Listed companies are responsible for deducting the withholding tax from dividends that they distribute to QFIs.
Can QFI deal with a GCC portfolio manager?
Yes, the QFI can deal with a GCC portfolio manager for the management of its investments in the Saudi Stock Exchange.
Can a portfolio manager be a capital market institution licensed by the Authority?
Yes, the QFI can deal with portfolio manager who is licensed by the CMA.
How can I follow up with the developments of the investment fund that I am subscribed to?
Yes, the QFI can deal with more than one portfolio manager at the same time, either if it was an AP authorised from the CMA or a foreign portfolio manager which includes a GCC portfolio manager, though, the QFI must notify the AAP when dealing with a new portfolio manager in accordance with Annex (3.1) of the Rules.
Is it possible for QFI to deal with another QFI to manage his investments in listed securities?
Yes, the QFI can deal with another QFI to manage his investments in listed securities and that does not prejudice the responsibility to abide by the law and its implementing regulations and market rules and its regulations, and other rules that are related.
What entity receives the investors’ complaints in CMA?
Yes, the applicant can re-apply and there is no specific time period which must lapse before the applicant can resubmit the application.
Are CRSD and ACRSC independent in their work?
A QFI may commence trading in any listed securities upon satisfying the following:
Holding a client account.
Holding an account with the Depositary Center.
Any conditions as may be imposed by the CMA.
The term "client account" is defined in the Glossary of Defined Terms Used in the Regulations and Rules of the CMA as: "an account at a local bank which is in the name of an authorised person and fulfills the conditions required by the Client Money Rules".
Should each QFI open a separate account in the Depositary Center?
Yes, every QFI shall open an independent account. After that, the QFI can open several investment portfolios that are linked to the account.
Can a QFI send trading orders through an international broker that is not qualified as a foreign investor?
If the international broker’s role is limited to sending orders issued by the QFI to the AP, then the international broker is not required to register as a QFI, provided that the international broker must have the authority to send such orders.
What are the costs of transferring securities from a Swap Agreement account to a QFI account?
The cost of transferring is 20 SAR for the shares of each listed company (not per share).
Does transferring securities from a Swap Agreement account to QFI account affect the market value of such securities?
Transferring shares from a Swap Agreement account to a QFI account does not affect the market value of the shares.
How long does it take to transfer securities from a Swap Agreement account to a QFI account?
The shares shall be transferred within 2 business days from the date on which all the requirements were completed.
Can a QFI be the Foreign Counterparty under a Swap Agreements Framework?
Yes, a QFI can be the Foreign Counterparty in Swap Agreements, but a QFI cannot participate as ultimate beneficiary under the Swap Agreements Framework.
Who is responsible of complying with the investment limits when the QFI engages with foreign portfolio manager?
The QFI is responsible of complying with investment limits and disclosure requirements and abide by the Capital Market Law and its Implementing Regulations and the rules of the Exchange and other relevant laws.
