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ARTICLE · 19 JANUARY 2022

Foreign Alert: Removal Of Institutions From Securities Advertisement Exemptions

Squire Patton Boggs
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Over the last year, there has been a gradual narrowing of the Capital Market Authority's (CMA) formal Securities Advertisement exemptions, which foreign investment managers had become accustomed...

Saudi ArabiaGovernment, Public Sector
Ahmed Butt
Ahmed Butt

Over the last year, there has been a gradual narrowing of the Capital Market Authority's (CMA) formal Securities Advertisement exemptions, which foreign investment managers had become accustomed to complying with when dealing with Saudi investors. This has led to an increased reliance on the CMA's reverse enquiry principles. We consider the key change, the reverse enquiry principles and how foreign investment managers can mitigate their risk.

  • Securities Advertisement to Institutions No Longer Exempt

Previously, any securities advertisement (pre-prepared marketing material) aimed solely at "Institutions" (also interchangeably known as "Investment Companies" and broadly defined as entities that own net assets of SAR10 million or more), certain exempt persons and capital market institutions was an exempt securities advertisement. However, Institutions were removed from the exemption when the Securities Business Regulations were amended in 2020. Consequently,

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