CMA seeks public feedback on investment fund disclosure rules

Capital Market Authority (CMA) headquarters

Saudi Arabia’s Capital Market Authority (CMA) invited interested parties and capital market participants to provide feedback on proposed amendments to investment fund disclosure requirements.

In a statement, the regulator said the consultation covers a draft framework to amend the Investment Funds Regulations, the Real Estate Investment Funds Regulations, and the Glossary of Defined Terms Used in the CMA’s Regulations and Rules.

The consultation period will run for 30 days, ending on Nov. 17.

The proposed amendments aim to enhance transparency and improve supervisory efficiency, thereby improving the quality of information available to investors and supporting informed investment decisions.

The draft consolidates ongoing disclosure and announcement obligations in a single section of the regulations to make the requirements clearer, the CMA said.

It also proposes changes to several investment fund disclosure requirements, including those covering conflicts of interest, specific events, annual and periodic reports, and fund terms and conditions.

For annual and periodic reports, the draft would require additional details on distributions to unitholders, clarifying their sources and nature, including distributions from fund investments and capital gains realized from asset sales.

It would also require funds to disclose details of their 10 largest investments, including asset types, counterparties, and each investment’s share of the fund’s net asset value. In addition, real estate funds would have to disclose revenue generated by each property, its percentage of the fund’s net asset value, and the sectoral distribution of their real estate assets. These measures aim to help unitholders make better-informed investment decisions, the regulator said.

For annual reports, the draft proposes adding a detailed analysis of fund performance, including comparisons with benchmark indices, explanations of factors affecting performance, expectations for future performance, and a risk assessment report for public funds.

The proposed amendments would also establish the Exchange’s website as the mandatory primary channel for publishing disclosures, while allowing funds to publish information on additional websites. The move aims to make information more accessible to investors and enhance transparency.

The CMA said it would take public feedback fully into account when finalizing the proposed amendments, which are intended to strengthen and develop the regulatory framework.

The Draft can be reviewed through the following link:

The Draft Amendments to the Investment Funds Regulations, the Real Estate Investment Funds Regulations, and the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority

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