In accordance with the decisions of the Capital Markets Authority related to cancellation of the licence of securities activities companies, in the event of cancellation of the licence of all securities activities for a company licensed to work in the management of securities activities, and removing it from the register of authorized persons with the Capital Markets Authority, the company shall be entrusted with keeping the money and assets of clients until they are handed over to them or to those who have the authorization to hold them, manage them or keep them, in accordance with what was stated in Capital Markets Authority Resolution No. (35) of 2019 and Resolution No. (25) of 2021.

In this case, the company shall be obligated to hand over the clients’ money and assets to them or to those who have the authorization to hold them, manage them or keep them, within one year from the date of the issuance of the decision to cancel the license, and the company shall be obligated to provide the Capital Markets Authority with a monthly report from the date of this decision on the termination of the company’s business with the clients’ money and assets, until the completion of the hand over.

But, is it allowed to extend the period for handing over clients’ money and assets to them or to those who have the authorization to hold them, manage them or keep them in the event that the securities company’s license is cancelled and removed from the register of authorized persons with the Capital Markets Authority?

The Capital Markets Authority Decision No. (42) of 2021 issued on 1/04/2021 included extending the period for the company to hand over clients’ money and assets to them or to those who have the authorization to hold them, manage them or keep them, for a period of six months, along with the company compliance to provide the Capital Markets Authority with a detailed monthly report of the company’s business related to clients’ money and assets, until the hand over is completed.

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To book an appointment or request legal advice about the duties of securities companies in the optimal implementation of clients’ orders, we are pleased to receive your inquiries at (info@Taqneen.com).