المادة 99: Offer of Securities Issued By a Foreign Fund in the Kingdom

Article 99: Offer of Securities Issued By a Foreign Fund in the Kingdom

a. Securities issued by a foreign fund may not be offered in the Kingdom except in accordance with this Part.

b. No person may offer securities issued by a foreign fund in the Kingdom unless the offer is being made through a distributor and the offering of securities shall be a private placement in accordance with the requirements set out in Article (101) of these Regulations.

c. The distributer referred to in Paragraph (b) of this Article, must be .one of the following:

1) A capital market institution licensed to carry out dealing activity.

2) A capital market institution licensed to carry out the activity of managing investments and operating funds.

3) A capital market institution licensed to carry out the activity of managing investments, provided that such foreign fund intended to be distributed and whose securities are to be offered in the Kingdom is established by such institution, or by an institution affiliated with it subject to an equivalent regulatory oversight in a jurisdiction recognised by the Authority as having equivalent regulation, and foreign investors own no less than (50%) of the total value of the fund’s units.

d. The capital market institution referred to in Subparagraph (3) of Paragraph (c) of this Article is excluded from the provisions of Subparagraph (4) of Paragraph (a) of Article (101) of these Regulations, and the provisions of Paragraphs (4) and (5) of Article (105) of these Regulations.

e. A foreign offered fund manager must be authorised in a jurisdiction that employs regulatory standards and requirements at least equivalent to those of the Authority. The Authority shall have the discretion to assess whether the jurisdiction has regulatory standards and requirements at least equivalent to those of the Authority.