Saudi Arabia Capital Markets Authority publishes study assessing compensation opportunities for affected parties in the capital market

Saudi Arabia’s Capital Markets Authority (CMA) published a study, “Assessment of Compensation Opportunities for Affected Parties in the Capital Market”, examining the increasing frequency of compensation cases linked to announcements of punitive decisions for violations of the Capital Market Law, its implementing regulations and other CMA-enforced rules. The study analyses complaints and feedback received by the CMA and incorporates input from specialists and law firms with experience before the Committee for Resolution of Securities Disputes, aiming to identify gaps in compensation methods and in the mechanisms for handling complaints and securities disputes. The CMA said it has reviewed the findings, identified areas for development and is taking measures to facilitate more systematic compensation pathways, aligning the work with its 2024–2026 strategy’s investor rights pillar, including initiatives to streamline compensation routes, develop procedures for class action suits, reduce the time from detecting violations to compensating affected parties, and monitor investors’ ability to recover rights and the success rate of compensation claims before the Committee.