The Capital Market Authority has announced the start of receiving applications for applicants to obtain a financial technology testing permit for the fifth lot.
It is a continuation of the Financial Technology Lab’s streak of successes in its previous four installments, and in continuation of the Authority’s enthusiasm to regulate and develop the Saudi financial market and make it an attractive environment for local and regional investors, supporting the financial technology sector and the development of innovative products on the market.
The authority is looking forward to receiving applications for a financial technology testing permit for the fifth batch From all interested in financial technology and entrepreneurs until December 15, 2021, provided that their products meet the necessary requirements, the most important of which is to be among the activities in securities regulated by the Authority and which are in an advanced stage of development that allows it to be tested or tried, as well as achieving the growth and efficiency of the Kingdom financial market The Authority also clarifies that it is receiving applications from applicants.During the year, the applications received are evaluated and studied in batch.
The FinTech Lab is an experimental legislative environment that allows providers of financial technology products and services to test their own models of business innovative within specific criteria, times and regulatory requirements and under the supervision of the Authority.
The lab receives candidates from inside and outside the Kingdom to experiment with financial products and services related to the business of securities with models of business that are ready for experimentation in an experimental environment.
In this regard, the Financial Technology Authority has supported the creation of a legislative and regulatory framework for financial technology products in the financial market and has worked on continuous development to attract models of business innovative and emerging technologies that open new horizons to facilitate financing and stimulate investment in an effort to build economic entities that value the depth and diversity of the financial sector and are in in line with the goals of the Financial Sector Development Program, one of the Kingdom’s main Vision 2030 programs.
Interestingly, the Authority launched the Financial Technology Laboratory in December 2018 and the laboratory received the first batch of applications to obtain a Financial Technology Testing Permit in February 2018 and the Authority continued its efforts to receive other questions in separate lots, and the Capital Market Authority Board approved the issuance of 17 A permit to experiment with financial technology and provide five different products, in the areas of crowdfunding services, automated advisory services, bidding and investment in debt instruments and permission to use distributed ledger technology (DLT) to organize the issuance and retention of securities and the social trading.
During the second half of 2021, changes were adopted to the instructions for the authorization of the financial technology experiment, the most important of which included the addition of definitions to clarify the nature of the financial technology laboratory, as well as the addition of instructions to do business in the financial technology laboratory.
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