Extending the Exception for Primary Dealers in Local Sovereign Securities

In the Name of Allah, the Most Gracious, the Most Merciful

Saudi Arabian Monetary Authority Headquarters

Banking Policy Department

Ref. No.: 42009011 Date: 18/02/1442 (Hijri) Attachments: 2 pages

Circular

To: Respected Banks, Peace, mercy, and blessings of Allah be upon you.

Subject: Extending the Exception for Primary Dealers in Local Sovereign Securities from Articles Five and Seventeen of the Securities Activities Regulations.

Attached is the Authority's directive communicated via email on May 7, 2020, regarding the extension of the exception for primary dealers in local sovereign securities from Articles Five and Seventeen of the Securities Activities Regulations, which takes effect as of the date of its email notification to you.

For your information and action.

Yours sincerely,

Yazeed bin Ahmed Al-Sheikh Director General, Banking Supervision

Distribution Scope:

• Banks operating in the Kingdom

P.O. Box 2992, Riyadh 11169, Telegram: MARKAZI, Telex: 404400, Tel: 4633000, Fax: 4662414

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Suliman R. Aljabrin From: Banking Policy Department Sent: Thursday, May 7, 2020 8:01 PM Cc: Sara M. AlThenyan; Sarah bin Ghunaim Subject: Extending the Exception for Primary Dealers in Local Sovereign Securities from Articles Five and Seventeen of the Securities Activities Regulations

To: Respected Banks, Peace, mercy, and blessings of Allah be upon you.

With reference to the Capital Market Authority (CMA) Council Resolution dated 22/09/1439H corresponding to June 6, 2018, which approved the exemption of local banks from the requirements of Articles Five and Seventeen of the Authority's Securities Activities Regulations when conducting dealing as principal, agent, or arranging activities with the Ministry of Finance as primary dealers in local sovereign securities issued by the Government of the Kingdom of Saudi Arabia, concerning their transactions with the customer categories specified in the table below:

Customer Category	Exception Period
Investment companies (excluding the customer categories listed below)	18 months
General Organization for Social Insurance (GOSI), General Organization for Pensions, or Saudi Aramco	24 months
Local banks	60 months

With reference to the letter from His Excellency the Minister of Finance, Chairman of the National Debt Management Center (NDMC) Board of Directors, No. 8497 dated 26/08/1441H corresponding to February 25, 2020, which states the issuance of a CMA Council Resolution dated 01/07/1441H corresponding to February 25, 2020, approving the extension of the exception period granted under the aforementioned Council Resolution dated 22/09/1439H corresponding to June 6, 2018, concerning bank transactions with the customer categories specified in the table below:

Customer Category	Additional Exception Period
Investment companies (excluding GOSI, General Organization for Pensions, Saudi Aramco, and local banks)	12 months from the expiry of the granted exception period per the aforementioned resolution
GOSI, General Organization for Pensions, and Saudi Aramco	24 months from the expiry of the granted exception period per the aforementioned resolution

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For your information and action accordingly.

Yours sincerely,

Suliman bin Rashid Aljabrin Director, Banking Policy Department P.O. Box 2992, Riyadh 11169 Kingdom of Saudi Arabia Saudi Arabian Monetary Authority (SAMA)

www.sama.gov.sa