The Saudi Capital Market Authority invites investors, interested parties and the public to provide their comments and observations on the amended Rules for Qualified Foreign Financial Institutions Investment in Listed Securities, which is made available on CMA's official website and will continue to receive the comments and observations for 30 calendar days.. All comments and observations will be studied and considered for the purpose of issuing the final Rules. The purpose of these Rules that was issued by the CMA on May 4, 2015, is to set out the procedures, requirements and conditions for the registration of qualified foreign investors (QFIs) with the Authority, and to specify their obligations and the obligations of authorized persons in this regard. Among the proposed amendments, lowering the minimum value of the assets under management to be SR3,750,000,000, rather than SR18,750,000,000. Furthermore, the CMA has agreed the inclusion of new types of foreign financial institutions, including sovereign wealth funds, university endowments and any other financial institution considered eligible by the CMA. Also, the proposed amendments include the elimination of the QFI clients concept. And referring to a foreign portfolio manager, as financial institution that has a legal personality which manages the assets of clients, and engage or intend to engage with the QFI or the applicant for the purpose of investing on its behalf. Moreover, the CMA announcement includes the elimination of the investment limits stated in sub paragraph (A/1), (A/2), (A/4) and (A/5) of Article 21 of the Rules for Qualified Foreign Financial Institutions Investment In Listed Shares, and kept the limitation of all foreign investors jointly (whether residents or non-residents) to own no more than 49 % of the shares of any listed company, unless the company's bylaws or any other regulation provides for foreign ownership to be limited to a lower percentage. In addition to allowing for higher holding percentage in listed companies, in which foreign investors may own larger stakes not reaching 10% of the shares outstanding of a single issuer for each investor. — SG
