المادة 10: Opening and Operating the Investment Account by Power of Attorney

Article 10: Opening and Operating the Investment Account by Power of Attorney

a) The capital market institution shall accept a power of attorney to open or operate an investment account for his natural person client whenever the following conditions are met:

1) The power of attorney is issued by the Notary Public, a person licensed as a notary, or out of the Kingdom and bears an “APOSTILLE” certificate or certified by the Saudi Embassy or Consulate at the issuing country and the Ministry of Foreign Affairs in the Kingdom.

2) The attorney-in-fact is an attorney-in-fact for any of the following:

a. a relative of the attorney-in-fact as a parent, son, daughter, spouse, brother, or sister.

b. One client, other than the persons referred to in paragraph (a) above, after obtaining an acknowledgment in accordance with paragraph (d) of this article.

3) The power of attorney must be issued by the client or the guardian if the client is under the age of (18) Hijri calendar years, and any power of attorney issued by the attorney-in-fact on behalf of the client shall not be accepted. ماع - Public

4) Subparagraph (a-2) of this Article does not apply to powers of attorney issued for the purpose of obtaining the investment account’s information, liquidating it, closing it, or transferring its balance to a bank account.

b) The capital market institution must verify the validity of the power of attorney and that it explicitly states the powers given to the attorney-in-fact, whether it is opening an investment account, operating it, performing transfers, purchasing or selling securities, or closing the investment account, and the capital market institution must comply with the provisions of the power of attorney.

c) The capital market institution shall not accept any power of attorney except for that set out in paragraph

(a) of this Article.

d) The capital market institution, before accepting a power of attorney, must obtain a written acknowledgment by the attorney-in-fact for the client referred to in subparagraph (b-2) of paragraph

(a) of this Article acknowledging that he does not have a valid and accepted power of attorney, at the capital market institutions’ level, for another client other than the persons referred to in subparagraph (a-2) of paragraph (a) of this Article. If the capital market institution knows otherwise, it must not accept the power of attorney or take any action pursuant to it.