The the Saudi Central Bank has issued the “Guidelines for Engaging in Digital Brokerage Activities,” which are derived from the licensing rules for activities supporting the financing sector issued by the Central Bank.
This step stems from the Central Bank’s supervisory and regulatory role over digital brokerage firms, and its ongoing efforts to develop the finance sector and empower the fintech sector.
The instructions aim to establish the minimum standards and procedures necessary for engaging in digital brokerage activities, thereby contributing to the growth and sustainability of the sector, without neglecting the principles and rules governing the protection of financial institutions’ clients and their rights.
The regulations stipulate a set of provisions and obligations, the most important of which are: requirements regarding the accuracy and retention of the information provided, and the entity’s obligations—such as the requirement to provide a list of the financing entities with which it deals—to enable the client to review them and select the most suitable option, in addition to establishing minimum requirements for the contract between the institution and the customer, and minimum requirements for the contract between the institution and the financing entity.
