The Capital Market Authority (CMA) and the General Commission for the Guardianship of Trust Funds for Minors and their Counterparts (Wilayah) have signed a cooperation and coordination agreement regarding the funds and securities in the capital market that fall under the jurisdiction of Wilayah authority as per Law of the General Commission for the Guardianship of Trust Funds for Minors and their Counterparts.
The agreement comes in line with Wilayah’s objectives to preserve, manage, and grow the assets under its guardianship, following an approved investment strategy.
Further, the agreement aligns with Wilayah’s powers stipulated in Article (2) of its Articles of Association (AOA) which set out Wilayah’s competencies in managing the funds of those who have no legitimate heirs, absentees, missing persons, or anonymous persons.
The agreement aims to complete the procedures for counting all funds and securities owned by anonymous persons, and any new relevant securities provided that the same shall be followed by working on what concerns other classes within the duly competencies of Wilayah, by the Law of Wilayah. This will enable Wilayah to practice its duly competencies towards the shares of the joint stock companies prepared for offering, whose owners have not been identified, located, or reached.
The process will involve inventorying, categorizing, transferring, and managing the investment of funds and securities in several stages. Both authorities have agreed on the roles and responsibilities assigned to each party in the agreement.
The Capital Market Authority stated that “this collaboration stems from the CMA’s commitment to fulfilling its role in protecting the investments of all investor categories,” confirming that the CMA is continuously working on enhancing the investors’ confidence by creating a fair and transparent investment environment based on procedures and rights that are clear for all capital market investors and participants.
