Regulatory Alerts2022-09-11
Added · Updated
Profit Sharing Investment Accounts Rules
The Saudi Central Bank (SAMA) has issued comprehensive rules establishing minimum operational, governance, and prudential requirements for banks offering Shari’ah-compliant Profit Sharing Investment Accounts (PSIA). The regulations mandate clear risk allocation, transparent disclosure to Investment Account Holders, and the prudent management of Profit Equalization and Investment Risk Reserves to ensure financial stability and consumer protection. Banks must maintain strict separation between unrestricted and restricted PSIA funds, comply with capital and liquidity calculations, and implement robust product governance frameworks effective from March 2023.