CMA amends asset management, investment firm rules

02/10/2017 Argaam

 

Saudi Arabia’s Capital Market Authority (CMA) has amended on Sunday its rules for asset management and other investment firms, the market regulator said in a statement.

Under the new rules, the minimum net assets required for an investment firm were reduced to SAR 10 million from SAR 50 million.

 

The minimum paid-in capital required for management activities was also cut to SAR 20 million from SAR 50 million.

 

In addition, two new types of management activities were permitted; namely management of non-real estate investment funds and management the portfolios of experienced investors with assets under management of SAR 2 billion maximum.

 

Work experience and certification requirements for a specialized investor were expanded to include investment in private equity funds and private placements.

 

The revisions are targeted to ease requirements for obtaining a management activity license, boost the number of asset managers across the Kingdom, as well as increase private equity and venture capital investments. 

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