The Saudi Market Authority is seeking advice on the regulatory framework for financing collective ownership

Today, Monday, the Board of the Saudi Capital Market Authority issued its decision, which includes the publication of the draft regulatory framework for the financing of collective ownership, for a public consultation for a period of 45 days, ending on 9 June. 2022.

The authority said in a statement that the project aims to support financial technological innovations in the financial market by defining the regulatory framework for financing collective ownership.

He said this includes determining the license required for his practice by financial market institutions, in a way that allows companies that have a permit to experiment with financial technology to obtain the appropriate license to practice it as a financial market institution, in in line with best practices in this sense.

The most important elements of the project are the regulation of the offer of shares by financial market institutions authorized to engage in the organization of works in the context of crowdfunding practice in securities, in addition to regulating the requirements to keep the financial market institutions authorized to engage in the organization work for the client funds they receive as part of the practice of crowdfunding Securities, opening and managing investment accounts.

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