25/11/2014
« Market Authority » : the enforcement of the third phase in the first quarter of next year
Specialists : standard application « Alkifaiah » to financial institutions limit the investors' fears
CMA said Tuesday that the number of financial institutions licensed to work in the securities business by the end of last year amounted to 89, with total capital of Foundation 15.7 billion, saying it would be the third phase of the prudential rules in the first quarter of next year, after the application of the first and second phases, including first prudential requirements, planning the second competency assessment included financial institutions, the third stage in the disclosure of those institutions on strategies and processes for risk management. He specialized in body movements designed to reduce the financial concerns and financial efficiency and monthly control in this time as a reaction to negative events brought about by a number of influential companies listed in the stock market gives traders a sort of reassurance.
In its statement, the Commission said it has raised the degree of safety and quality in the work of the licensees ' licensed financial institutions ' financial market authority through prudential rules introduced in January 2013 to institutions engaged in the activity of the securities to be added to the other regulations governing the activity and including list of ' authorized persons '. She has been to apply best practices and international standards to the requirements of Basel II and III, which aims to establish a minimum capital requirement to ensure availability of the necessary financial resources for the continuation of the authorized person and limit the amount of risk.
These rules depend on the person licensed to maintain sufficient capital base to cover the minimum requirements for capital, as is the amount of minimum capital requirements based on the size of the risk to the person authorized as credit risk, market fluctuations, and operational risk. Thus the minimum capital requirements over the authorized person more vulnerable to these risks. Mohammed Al-shimemeri commented, financial analyst, that this step taken by the Commission came to its regulatory role to maintain stability of the brokerage firms and specialized financial securities, and apply relevant standards prudential rules which specify minimum capital according to Basel II requirements and 3 ' which have Saudi companies, as in the statement, to meet and exceed regulatory requirements and confirm the ongoing follow-up to it.
TB said that this new regulation will ensure preservation of investor funds in the event of any fluctuations in liquidity so as not to repeat what happened from the collapse of financial companies in the United States in 2008, which led to transmission losses to customer accounts, considering that the application of the criterion of adequacy and monthly control limits any financial concerns. Mohammed Yehya, Said financial specialist, that it is clear that the Saudi capital market authority began to move rapidly in the direction of the financial control and accounting control of listed companies within the strive and accelerated during the last years to improve the efficiency of the capital market and corporate efficiency.
He noted that body coincides with adverse events that occurred in major listed companies and stakeholders such as: Mobily, which was considered a powerful shock to the market and investors, and this undoubtedly gives traders a sort of trust in the responsiveness of the body and their interactions and their ability to take decisions that will increase the efficiency of the market '. He continued: ' and check the solvency of companies and licensees and the ability of those people to adjust management lists financial companies to ensure absolute transparency and the ability of companies to sustainability is at the heart of the concerns of the capital market authority '. And prudential financial market authority of persons authorized by the requirements of prudential rules, consisting of three pillars, the first governing prudential requirements covering credit risk, market risk and operational risk, the second process includes internal assessment of capital adequacy, and the third includes disclosure strategies and processes for risk management and compliance and the value of its capital base, which will begin in the first quarter of next year.
