Country Manuals Asset Management –
Dear Client,
We would like to inform you that BRP has updated its COUNTRY MANUAL ASSET MANAGEMENT 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
Material changes
The Country Manual has been reviewed to ensure that the content of all the documents remains accurate and up-to-date.
The changes/modifications are as follows:
- Generic marketing activities such as presenting the Company in general terms as well as providing macroeconomic analysis and financial research (without specific information on strategies, investment services and/or financial products) is now only permitted towards Exempt Persons, Capital Market Institutions or on a cross-border and reverse solicitation basis towards Institutions and/or UHNWI (“current market practice”).
- The (proactive) contacting of Capital Market Institutions in order to set up and maintain a distribution network without having contact with end-clients and without being involved in the reception and transmission of orders is only permitted on an occasional basis onshore in Saudi Arabia.
- The marketing of unregistered funds and structured products is now only permitted towards Exempt Persons and Capital Market Institutions or in accordance with the “current market practice” towards Institutions and/or UHNWI; whereas locally registered funds and structured products may only be marketed towards Exempt Persons and Capital Market Institutions.
- Moreover, “Key Information Documents” (referred to as “terms and conditions”, “information memorandum”, “key fact sheet” and/or “key information”) must be made available to potential investors in Arabic language to enable them to make informed investment decisions. However, this requirement is addressed to locally licensed Capital Market Institutions and not to foreign (non-licensed) investment firms acting exclusively based on the “current market practice”.
Finally, the marketing of services and mandates is now only permitted towards Exempt Persons and Capital Market Institutions or in accordance with the “current market practice”.
Non-material changes
Some comments/conditions have been reworded and further non-material changes have been made throughout the documents.
For more information, please contact us: info@brpsa.com
Best regards,