The Saudi Arabia Capital Market Authority has opened a public consultation on draft changes to the regulatory framework for securities business activities that would simplify parts of the licensing and business commencement process and revise technology and customer due diligence requirements. In substance, the package would remove some information and documents currently required in licence applications and before firms start business, reduce the minimum capital requirement for custody to SAR 20 million from SAR 50 million, and recalibrate capital thresholds for selected dealing and arranging activities. The draft would set a SAR 2 million minimum capital requirement for arranging activities that involve holding client funds in securities-based crowdfunding. It would also create sub-activities within Dealing and align minimum capital to the risk of each activity, with Dealing as Principal, Underwriting, and Executing Transactions on a Margin Basis grouped under a SAR 20 million requirement, while Dealing as Agent would carry a SAR 10 million requirement. In addition, capital market institutions licensed only for Advising would be allowed to engage in other professions or businesses subject to specified controls, would gain more flexibility in combining registrable functions, and would face updated Know Your Client requirements linked to the customer’s money laundering and terrorism financing risk classification, supported by designated forms. The consultation runs for 30 calendar days and closes on 17 June 2026. Feedback will be considered before the authority approves the final draft amendments to the Capital Market Institutions Regulations, the Securities Business Regulations, and the Glossary of Defined Terms used in the authority’s regulations and rules.
Saudi Arabia Capital Markets Authority2026-05-18
Saudi Arabia Capital Market Authority launches consultation on easing securities business licensing and cutting custody capital to SAR 20 million
The Saudi Arabia Capital Market Authority is consulting on draft amendments to the securities business regulatory framework to simplify licensing and business commencement requirements and recalibrate minimum capital thresholds. Proposals include reducing the custody capital requirement to SAR 20 million from SAR 50 million, setting a SAR 2 million minimum for arranging activities involving client funds in securities-based crowdfunding, and aligning capital for dealing sub-activities to their risk. The draft would also permit institutions licensed only for advising to undertake other businesses under controls, adjust combinations of registrable functions, and update Know Your Client requirements based on money laundering and terrorism financing risk classification.