Regulatory Alerts2022-12-04
Controls for the Distribution of Public Investment Funds
The Saudi Central Bank issues binding controls requiring banks to exclusively contract with Capital Market Authority-licensed distributors for public investment funds and restrict their distribution to electronic channels only. The directive mandates clear disclosure to clients that these funds are capital market investment products rather than banking products, explicitly separating the bank from the client-distributor relationship. Banks must strictly adhere to these operational guidelines to ensure regulatory compliance and transparent investor protection.
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