The CMA is the regulator for the Saudi capital markets and for any securities business conducted in the Kingdom of Saudi Arabia. Securities are defined very broadly in the CMA’s Glossary of Defined Terms, covering shares, debt instruments, warranties, certificates, units, options, futures, contracts for differences, long term insurance contracts, and any right to or interest in any of them.
Securities activity is defined in the CMA’s Securities Business Regulations as any of the following:
- Dealing: a person deals in a security as principal or as agent, and dealing includes selling, buying, or managing the subscription or underwriting securities;
- Arranging: a person who introduces parties in relation to securities business, advises on corporate finance business, or otherwise acts to bring about a deal in a security;
- Managing: a person who manages a security belonging to another person in circumstances involving the exercise of discretion;
- Advising: a person who advises a person on the merits of that person dealing in a security or exercising any right to deal conferred by a security; and
- Custody: a person who safeguards assets belonging to another person, which include a security, or who arranges for another person to do so, including taking the necessary administrative measures.
Securities activities may only be conducted by way of business in the Kingdom of Saudi Arabia by an entity that has been authorized to do so by the CMA.