CMA issues guidelines for monitoring compliance of investment funds, REITs

Logo of Capital Market Authority (CMA)

The Capital Market Authority (CMA) issued today the guidelines for the Compliance Monitoring Program for investment funds and real estate investment funds, aiming to enable fund managers to develop and implement an effective program that enhances fund governance efficiency.
 

The guidelines outline the role of investment fund and REIT managers in applying the compliance monitoring program. It also highlights key standards and controls that can be used as guidance and taken into consideration when implementing the program, in line with the Capital Market Law and its implementing regulations. The goal is to ensure the program is applied optimally and to raise the level of compliance with regulatory requirements, the regulator said in a statement.
 

The guidelines are not a substitute for the provisions of the Capital Market Law or its implementing regulations. In case of any contradiction between the guidelines and the law or its regulations, the law and regulations shall prevail. As the Authority’s regulations are subject to continuous amendment, it is the responsibility of the fund manager to stay updated on any changes issued by the Authority.
 

The objectives of the Compliance Monitoring Program for investment funds include:
 

1- Ensuring continuous compliance with all regulatory requirements related to investment funds and REITs.
 

2- Verifying the existence of appropriate policies and procedures that enable the fund manager to meet regulatory requirements.
 

3- Designing and implementing the Compliance Monitoring Program by reviewing the requirements, applying related procedures, monitoring, documenting, and saving the results.
 

4- Follow-up on the activities of the fund manager and evaluating the current status of the fund, including the need to take any additional measures in any regulatory aspect.