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RIYADH: The Capital Market Authority (CMA) has invited investors, interested parties and the public to provide their comments and observations on the amended rules for qualified foreign financial institutions’ investment in listed securities.
The amendment is available on CMA’s website and will receive the comments and observations for 30 calendar days. All comments and observations will be studied and considered for the purpose of issuing the final rules, according to the authority.
The purpose of these rules, issued by the CMA on May 4, 2015, is to set out the procedures, requirements and conditions for the registration of qualified foreign investors (QFIs) with the authority, and to specify their obligations as well as those of authorized persons in this regard.
The proposed amendments include lowering the minimum value of the assets under management to SR3,750,000,000, rather than SR18,750,000,000.
Furthermore, the CMA has agreed to the inclusion of new types of foreign financial institutions, including sovereign wealth funds, university endowments and any other financial institution considered eligible by the CMA.
The proposed amendments also include the elimination of the QFI clients concept and referring to a foreign portfolio manager as financial institution that has a legal status, which manages the assets of clients, and engage or intend to engage with the QFI or the applicant for the purpose of investing on its behalf.
Moreover, the CMA announcement dated May 3, 2016, includes the elimination of the investment limits stated in sub paragraph A/1, A/2, A/4 and A/5 of article 21 of the rules for qualified foreign financial institutions’ investment in listed shares, and those who kept the limitation of all foreign investors jointly (whether residents or non-residents) to own no more than 49 percent of the shares of any listed company, unless the company's bylaws or any other regulation provides for foreign ownership to be limited to a lower percentage.