Article 6: Instructions for Opening Investment Accounts for Natural Persons

Article 6: Instructions for Opening Investment Accounts for Natural Persons

a) Opening Investment Accounts for Saudi Natural Persons To open an investment account for a Saudi natural person, the capital market institution must obtain and verify the client's valid national identification card information.

b) Opening Investment Accounts for the Citizens of the GCC Member States To open an investment account for a citizen of a GCC member state, the capital market institution must obtain and verify the client's valid passport or national identification card information.

c) Opening Investment Accounts for Foreign Residents in the Kingdom

1) Foreign Residents Carrying a Residence Permit (Iqama) or Resident Identity: To open an investment account for a foreign resident who holds a residence permit (Iqama) or resident identity, the capital market institution must obtain and verify his valid residence permit (Iqama) or resident identity information. ماع - Public

2) Holders of the Five Years Residency Card: To open an investment account for a holder of a five years residency card, the capital market institution must obtain and verify the valid five years residency card information.

3) Members of the Diplomatic Missions in the Kingdom: To open an investment account for a member of a diplomatic mission in the Kingdom, the capital market institution must obtain and verify an identification letter from the member's embassy and the member's valid diplomatic identity card information.

d) Opening Investment Accounts for Foreign Natural Persons Residing in the GCC Member States To open an investment account for a foreign person residing in a GCC member state for the purpose of investing in the permitted securities in accordance with the Capital Market Law and its Implementing Regulations and the related instructions issued by the Authority, the capital market institution must obtain and verify the valid Resident Identity information and passport information.

e) Opening Investment Accounts for Foreign Natural Persons not Residing in the Kingdom or in the GCC Member States To open an investment account for a foreign natural person not residing in the Kingdom or in a GCC member state for the purpose of investing in the permitted securities in accordance with the Capital Market Law and its Implementing Regulations and the related instructions issued by the Authority, the capital market institution must obtain and verify the client's valid passport information.

f) Special Provisions for Opening Investment Accounts for Natural Persons

1) Opening an Investment Account for a Blind Person or a Person Unable to Read

a. When opening an investment account for a blind client or a client unable to read, the client shall be entitled to have a personal referee in attendance to explain to him the investment account opening procedures and terms and conditions stated in the investment account opening agreement. In cases where the client does not have a personal referee in attendance, an employee of the capital market institution must explain the procedures to him, and an officer in the branch or the main offices of the capital market institution must certify that the client was provided with all information of Know Your Customer Form and investment account opening agreement, and that terms and conditions of the investment account were read to him, and he acknowledged that he bears all responsibilities of opening that investment account.

b. The referee of the blind person or the person unable to read must be a natural person with full legal capacity who personally knows the blind person or the person unable to read intending to open an investment account; hold a valid Identification Document; be able to explain the investment account opening procedures to the blind person or the person unable to read; be able to read the terms and conditions of the investment account opening agreement; and provide an acknowledgement in writing of such.

c. The Identification Document information of the personal referee must be obtained and verified.

d. When an investment account is opened for a blind client or a client unable to read, such client shall not be allowed to use any services provided by telephone or electronic channels for ماع - Public operating the investment account until one of the capital market institution's employees or his personal referee reads to him the terms and conditions related to such services and the capital market institution informs him that such services are provided to him based on his will, choice, and awareness of the risks associated with using such services and the client’s legal liability for all transactions executed through such services. The capital market institution shall also obtain a written acknowledgement signed by the client indicating that he understands the above terms.

e. The capital market institution may use the client's fingerprint or personal stamp as his personal signature in all of his transactions.

f. With the exception of any transactions carried out by telephone or electronic channels, in order for the capital market institution to accept any instructions from a blind client or a client unable to read, the capital market institution must obtain the client's signature on such instructions with the client's awareness and responsibility of the instructions he signs. Also, if the blind client or the client unable to read was accepted as a client with a personal referee when opening the account, the capital market institution must obtain an acknowledgement in writing signed by a personal referee that meets the conditions stated in subparagraph (b-

1) of paragraph (e) of this Article that the client is aware of the procedure's nature and that he bears liability as a personal referee.

2) Opening an Investment Account for Persons Under the Age of (18) Hijri Calendar Years:

a. An investment account for a person under the age of (18) Hijri calendar years is opened by a guardian, provided that the investment account is under the name of the client and operated by the guardian.

b. The Identification Document information of the client who is under the age of (18) Hijri calendar years and the Identification Document information of his guardian must be obtained and verified.

c. If the client is a Saudi citizen under the age of (15) Hijri calendar years, the family card information that shows the client's information and the valid national identification card information of his guardian must be obtained and verified, without requiring the client to provide a national identification card.

d. If the client is under the age of (18) Hijri calendar years and under legal guardianship, the capital market institution must obtain and verify information of the guardian's deed issued by the competent court and comply with all its provisions.

e. If the client is a foreigner under the age of (18) Hijri calendar years and his name is added to another person's residence permit (Iqama) or resident identity, the information of the valid residence permit (Iqama) or resident identity (to which the client's name is added) must be obtained and verified, provided that the investment account is under the name of the client and opened and operated by the holder of the residence permit (Iqama) or the resident identity to which the client is added.

f. The capital market institution must carry out customer due diligence measures in relation to the guardian, and the guardian when acting on behalf of the client under the age of (18) Hijri calendar years shall comply with all legal responsibilities applicable to such client.

3) Opening an Investment Account for children in need of care ماع - Public

a. An investment account for a child residing in one of the housing centers, with a substitute (foster) family, in a charity or an association caring for orphans, or in a rehabilitation center under the supervision of the Ministry of Human Resources and Social Development is opened by the authorised signatories to open the investment account as per the letter of the Ministry of Human Resources and Social Development, provided that the investment account is under the name of the child and operated by the authorised signatories to operate the investment account as per the letter of the Ministry of Human Resources and Social Development.

b. The capital market institution must obtain information of the following documents and verify them: -A letter from the Ministry of Human Resources and Social Development containing the child’s information, the names of the authorised signatories to open and operate the investment account, and the details of the substitute (foster) family (if the child resides with substitute (foster) family). -Information of the Identification Document of the child and authorised signatories to open and operate the investment account.

c. The capital market institution must carry out customer due diligence measures in relation to the authorised signatories to open and operate the investment account, and the authorised signatories to open and operate the investment account when acting on behalf of the client referred to in subparagraph (a-3) of paragraph (e) of this Article shall comply with all legal responsibilities applicable to such client

4) Opening an Investment Account for an Incapacitated Person

a. An investment account for an incapacitated person is opened by his guardian, provided that the account is in the name of the client and operated by his guardian.

b. The capital market institution must obtain and verify information of the guardian Identification Document and information of the identification card of the incapacitated client above the age of (18) Hijri calendar years or information of the family card if the client is below the age of (15) Hijri calendar years.

c. Information of a final decision or a decision subject to expeditious execution issued by the competent court which illustrates that the client for whom the investment account is to be opened is considered incapacitated must be obtained and verified, and the capital market institution must comply with all its provisions.

d. The capital market institution must carry out customer due diligence measures in relation to the guardian, and the guardian when acting on behalf of the incapacitated client shall comply with all legal responsibilities applicable to such client.

5) Opening an Investment Account for a Person Unable to Write and Sign The capital market institution must open the investment account for a client unable to write and sign in the same procedures of opening an investment account for natural persons. However, the capital market institution must take the fingerprints or personal stamp of such client as a substitute for his personal signature. ماع - Public

6) Opening Investment Accounts for the Interdicted Person

a. The investment account of an interdicted person is opened by his guardian, provided that the investment account is under the name of the interdicted person and operated by his guardian.

b. Information of the Identification Documents of the interdicted person and his guardian must be obtained and verified.

c. obtain information of a final decision or a decision subject to expeditious execution issued by the competent court must be obtained and verified, and the capital market institution must comply with all its relevant provisions.

d. The capital market institution must carry out customer due diligence measures in relation to the guardian, and the guardian when acting on behalf of the interdicted person shall comply with all legal responsibilities applicable to such client.