CMA amends asset management, investment firm rules

Saudi Arabia’s Capital Market Authority (CMA) has amended on Sunday its rules for asset management and other investment firms, the market regulator said in a statement.

Under the new rules, the minimum net assets required for an investment firm were reduced to SAR 10 million from SAR 50 million.

The minimum paid-in capital required for management activities was also cut to SAR 20 million from SAR 50 million.

In addition, two new types of management activities were permitted; namely management of non-real estate investment funds and management the portfolios of experienced investors with assets under management of SAR 2 billion maximum.

Work experience and certification requirements for a specialized investor were expanded to include investment in private equity funds and private placements.

The revisions are targeted to ease requirements for obtaining a management activity license, boost the number of asset managers across the Kingdom, as well as increase private equity and venture capital investments.