Country Manuals Products –
Dear Client,
We are glad to inform you that BRP has updated its COUNTRY MANUAL PRODUCTS for the following jurisdiction:
- SAUDI ARABIA
| SOURCE OF CHANGES | ANSWERS |
| Law/Regulation | No |
| New Position of the Authorities | No |
| Evolution of Expert’s interpretation | Yes |
Definitions & Concepts, Regulatory Overview and Behaviour Template
The Country Manual has been reviewed to ensure that the content of all the documents remains accurate and up to date.
Material changes
The changes/modifications are as follows:
- From a licensing perspective, the provision of Macroeconomic information/reports as well as Investment research and Financial analysis documents/reports is now only permitted on an occasional basis onshore in Saudi Arabia (at target). Accordingly, the Country Manual Product Behaviour Template (CM P BT) answers these scenarios with “Grey zone/YES”.
- In alignment with the Country Manual Private Banking (CM PB), the provision of execution only services is no longer permitted onshore in Saudi Arabia (at target), nor is it recommended on a cross-border basis into Saudi Arabia (remote) to Retail Investors. Accordingly, the CM P BT now provides the answers “NO” and “Grey zone/NO” in the relevant scenarios.
- In this context, it should be noted that foreign (unregistered) financial products should only be offered/marketed on an occasional basis, without providing specific product documentation, while providing advisory services onshore in Saudi Arabia (at target) under the “current market practice”. The CM P BT now mentions these conditions by answering “Grey zone/YES” accordingly.
- Locally registered financial products can only be offered/marketed onshore in Saudi Arabia (at target) and on a cross-border basis into Saudi Arabia (remote) through a locally licensed financial intermediary. Accordingly, the CM P BT now answers the relevant scenarios to Professional Investors with “Grey zone/YES”.
- Where locally registered CIS are offered/marketed through locally licensed financial intermediaries onshore in Saudi Arabia (at target), the local notification/authorisation regime and the specific product documentation required will vary depending on the type of fund and the target investors. However, it is clarified that the obligation to provide “key information documents” (referred to as “terms and conditions”, “information memorandums”, “key facts” and/or “key informations”) in Arabic to potential investors to enable them to make informed investment decisions is addressed to locally licensed financial intermediaries and not to foreign (unlicensed) service providers operating based on the “current market practice”.
For more information, please contact us: info@brpsa.com
Best regards,