Saudi Arabia is looking to introduce new regulations for investment funds in the kingdom, as part of efforts to boost transparency, safeguard investors and adopt global best practices in the capital markets.

The kingdom’s Capital Market Authority (CMA) launched a public consultation on Wednesday regarding proposed changes to the regulatory framework for investment funds. The consultation runs for about a month until March 7, 2025.

According to the CMA, the new regulatory framework seeks to strengthen the asset management industry and boost its competitiveness. New regulations are also expected to boost transparency and disclosure levels for fund unit holders, ensure governance standards and protect the rights of investors.

The draft regulations, which can now be accessed by the public via the CMA website, includes requirements for establishing investment funds and preparing financial statements.

The provisions also seek to enable the distribution of investment fund units through companies and platforms authorised by the Saudi Central Bank, as well as impose a cap on service fees, commissions and charges levied by public fund managers.

New provisions are also being proposed for the voluntary withdrawal of public and private fund managers.

(Writing by Cleofe Maceda; editing by Seban Scaria)