Objectives of the Draft and its main elements The Draft aims to support financial technology innovations in the capital market by setting out a regulatory framework for equity crowdfunding, including determining the required authorisation for capital market institutions to carry it out, and enableing companies that have Financial Technology Experimental Permits to obtain the appropriate authorisation to practice it as a capital market institution, in line with international best practices.
The main elements of the Draft are as follows:
1. Regulating share offering through capital market institutions that are authorised to carry out arranging activities in the course of carrying out securities crowdfunding.
2. Setting the requirements for custody of clients’ money received by capital market institutions that are authorised to carry out arranging activities in the course of carrying out securities crowdfunding, and opening and operating investment accounts.
Last Modified Date: 10/05/2022 - 9:44 AM Saudi Arabia Time