The Capital Market Authority (the “CMA”) has launched a public consultation on proposed amendments to brokerage licensing requirements under the Capital Market Law. This initiative represents a significant step toward aligning Saudi regulations with international best practices, enhancing competition, and driving innovation in the Saudi capital market. The reforms aim to:

• Enhance market accessibility and foster competition.
• Stimulate the growth of the asset management industry by developing the services provided in dealing and custody activities and promoting the development of innovative financial products and services.
• Reduce costs and improve service quality for market participants.
• Attract international brokerage firms to strengthen Saudi Arabia’s capital market.

Key Proposed Changes

The proposed amendments introduce greater flexibility by:

• Expanding legal structures (Article 32): Shifting the determination of legal structure for brokerage firms to the CMA’s implementing regulations, allowing firms to adopt legal structures suited to their activities rather than requiring joint-stock company status.
• Revising capital requirements (Article 33): Transferring the determination of minimum capital requirements for brokerage firms to the CMA’s implementing regulations, replacing the fixed SAR 50 million threshold.

Provide Your Feedback

The CMA invites stakeholders to submit their feedback on these proposed changes by February 20, 2025 (21/08/1446H) via:

• The Unified Electronic Platform for Public Consultation: istitlaa.ncc.gov.sa
• Email: Laws.Regulations@cma.org.sa