Article 16: Instruction on the Attachment of Investment Accounts and Removing the Attachment of

Article 16: Instruction on the Attachment of Investment Accounts and Removing the Attachment of

them and Disclosure of their Information and Execution upon them

a) Provisional Attachment of the Investment Account and Investment Portfolios, the lifting of such attachment, Disclosure of its Information, and execution thereon upon the Authority's Request:

1) Subject to the provisions of Article (30) of the Capital Market Law and Article (29) of the Capital Market Institutions Regulations, the capital market institution is not permitted to provisionally attach or disclose the information of any Investment Account or Investment Portfolio, unless requested by the Authority or a competent judicial authority through the Authority.

2) When the capital market institution receives a request from the Authority to disclose any information related to an Investment Account or Investment Portfolios associated therewith of any of its clients, the capital market institution must provide the Authority with the requested information, or inform the Authority that the requested information do not belong to a client of the capital market institution, in a maximum period of (3) business days, unless the Authority specifies otherwise.

3) Unless the Authority's request is specific, the capital market institution must disclose information of all of the client's Investment Accounts and Investment Portfolios associated therewith.

4) When the capital market institution receives a request from the Authority to disclose an Investment Account statement related to any of its clients, the capital market institution must provide the Authority with the requested Investment Account statement, containing, as a minimum, the required information stipulated in Annex (3) of these Instructions.

5) When the capital market institution provisionally attaches the Investment Accounts and Investment Portfolios associated therewith of a certain client at the Authority's request, the capital market institution must not allow that client to take any action in relation to the balances or assets of any attached Investment Accounts and Investment Portfolios, unless the Authority's request was to provisionally attach a specific amount, then the client shall be allowed to take action in respect of any amount exceeding the specified amount.

6) When the capital market institution receives a request from the Authority to provisionally attach the Investment Accounts and Investment Portfolios associated therewith of a client, the capital market institution must attach the Investment Account and immediately provide the Authority with information of the attached Investment Accounts and Investment Portfolios, or immediately inform the Authority that the Investment Accounts requested to be attached do not belong to a client of the capital market institution. ماع - Public

7) When an Investment Account is provisionally attached based on subparagraph (a-5) of this Article, the capital market institution must stop all money transfer and withdrawal transactions and must not allow the utilization of the Investment Account balance in any form.

8) The capital market institution must not remove the provisional attachment of any Investment Account or Investment Portfolios that was attached based on subparagraph (a-5) of this Article until the capital market institution receives a request from the Authority. When the capital market institution receives a request from the Authority to remove the provisional attachment of the investment accounts of a client, the capital market institution must immediately remove the attachment and immediately provide the Authority with information of the investment accounts of which the attachment was removed.

9) When the capital market institution receives a request from the Authority to execute upon the Investment Accounts or Investment Portfolios associated therewith of a client, the capital market institution must immediately initiate execution procedures and promptly provide the Authority with information regarding the Investment Accounts or Investment Portfolios on which execution has been carried out.

b) Blocking the Investment Account and Investment Portfolios upon the initiation of liquidation proceedings against the client, the Client's Insolvency, or Loss of Legal Competence:

1) If the capital market institution receives a notification of initiation of liquidation proceedings against the client, enclosing official documents as evidence, regarding the client's insolvency, bankruptcy, or loss of legal competence, the capital market institution must block all the Investment Accounts and Investment Portfolios associated therewith of that client without delay.

2) When an Investment Account is blocked based on subparagraph (b-1) of this Article, the capital market institution must stop all money transfer and withdrawal transactions and must not allow the utilization of the investment account balance or any action on Investment Portfolios associated therewith assets in any form.

3) The capital market institution must enable the bankruptcy trustee to view any information of the client money and to take the necessary actions regarding the client money to the extent necessary to enable the bankruptcy trustee to perform the duties within the powers under the decision issued by the competent court, provided that the bankruptcy trustee’s action does not extend to the Investment Accounts and Investment Portfolios, on which the blocking order was issued, prior to the competent court’s ruling on the initiation of any of the bankruptcy procedures, unless the court where the petition for the initiation the procedure is filed decided otherwise.

4) The capital market institution must not unblock the investment account and Investment Portfolios associated therewith that was blocked based on subparagraph (b-1) of paragraph (b) of this Article until the capital market institution receives a request from the Authority.

c. Disclosing the Investment Account information and Investment Portfolios, Blocking it, and Liquidating it Upon the Client's Being Deceased

1) If the capital market institution is officially notified or becomes aware that the client is deceased, the capital market institution must block all of the client`s investment accounts and Investment Portfolios associated therewith without delay. ماع - Public

2) When any person requests to be provided with information of the investment accounts and Investment Portfolios associated therewith of the deceased client, the capital market institution must provide him in writing with detailed and clear information of the Investment Accounts and Investment Portfolios associated therewith of the deceased client after verifying the identity of that person and ensuring that he is one of the heirs or attorney-in-fact of one of them. The capital market institution must also obtain and verify the Identification Document information of that person, information of the power of attorney if that person was an attorney-in-fact of the heirs or one of them, information of the document establishing death of the deceased client, information of the determination of heirs.

3) The capital market institution, after freezing the investment account of the deceased client, must not carry out any transactions from such account except for liquidating the investment account for the benefit of the heirs.

4) The capital market institution must not liquidate the investment account and Investment Portfolios associated therewith for the benefit of the heirs until obtaining information of the document establishing death, information of the determination of heirs, information of, the guardianship deed for the minor heirs (if there is minor heirs) and power of attorney (if any) and verify them. The capital market institution must also obtain and verify information of the Identification Document of the guardian, attorney-in-fact, and heirs who have no guardian or attorney-in-fact, and if there is a judicial deed for the distribution of the inheritance issued by the competent court, the capital market institution must obtain information of the deed and verify it.

5) If the heirs of the deceased client are non-resident foreigners, the capital market institution must not liquidate the investment accounts and Investment Portfolios associated therewith of the deceased client until the requirements aforementioned in sub-paragraph (4) are fulfilled, and ensure, if the documents were issued outside the Kingdom, that the documents bear “APOSTILLE” certificate or they are authenticated by the Saudi Embassy or Consulate at the issuing country and the Ministry of Foreign Affairs in the Kingdom.

6) After the investment account of the deceased client and all investment portfolios linked to it are liquidated, the capital market institution must close the investments portfolios linked to the investment account and the client account opened by the capital market institution, then close the client's investment account.

7) After the capital market institution completes, upon the Authority's instructions, the liquidation of the investment account of the deceased client and all of the investment portfolio linked to it, the capital market institution must notify the Authority, immediately, if he receives any dividends or bonus shares belonging to that client. ماع - Public Part 5 Publication and Entry into Force