Regulatory Alerts2024-12-29
Allowing the Distribution of Public Investment Fund Units through Electronic Channels of Electronic Money Institutions
The Saudi Central Bank (SAMA) has authorized electronic money institutions to distribute publicly offered investment fund units through their e-wallet applications, subject to specific regulatory conditions. EMIs must secure prior SAMA notification, verify compliance with payment system regulations, and ensure that contractual liability and due diligence remain with the licensed capital market institution. The framework restricts EMIs to distribution and document execution via e-wallets, mandates client suitability assessments by the fund manager, and enforces strict segregation between payment and investment activities.
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