Licensing and Inspection Department

Licensing and Inspection Department

The Licensing and Inspection Department is in charge of licensing companies to perform the financial services mentioned in the Securities Law, and to accredit the natural persons through whom companies practice the licenses they acquire and renew these licenses and accreditations upon expiry of their validity period specified in Law. The Department also inspects financial services companies to ensure their compliance with the provisions of the Securities Law and regulations and instructions issued on the basis thereof.

Services provided by the Licensing and Inspection Department:

•Licensing companies to perform financial services:
Documents needed to provide the service:

1.The name and address of the applicant for a license, and the locations of its branches if any.
2.The type of company, the number and date of its registration with the Companies General Controller, and the certificate of registration showing the names of the board of directors or executive board, the names of persons authorized to sign on behalf of the company, and sample signatures.
3.The memorandum of association and articles of association.
4.The nature of the applicant’s work and the period of time during which he has practiced this work.
5.The names and addresses of the senior management who have executive powers, a brief curriculum vitae of their professional experience in securities, and the places of work and residence of the company’s employees, with the title, job description, and photocopy of the identity card of each one of them.
6.Certificates for members of the board and senior management who have executive powers that they have not been convicted of a crime or misdemeanor.
7.Names of shareholders and the number of shares owned by each one of them if the company is a limited liability company, and the name of each person who owns 5% or more of the company’s capital if it is a shareholding company.
8.The required financial statements as at a date not exceeding three months before the date of submission of the application, and the most recent audited financial statements if any.
9.The name and address of the company’s auditor.
10.The organogram of the company, its preliminary feasibility study, and its plan of action showing its expected financial statements during its first 12 months of operations.
11.Written work procedures that will be implemented.
12.A list of the services that the company plans to provide.
13.The basis on which the applicant will calculate the commissions or service fees that it will charge its customers.
14.Evidence that the applicant has deposited the required capital in the company’s bank account.
15.The form of the agreement for dealing in securities, a form for opening an account, a form of customers’ regular account statements, and organizational statements needed for the progress of work. It is possible for the applicant to submit these forms and statements to the Commission samples after receiving the license.
16.A compliance manual showing the procedures that the company will implement to ensure effective oversight of the activities to be licensed.
17.Any agreements between the applicant and another party to fulfill the work requirements.
18.Evidence that the required fees are paid.
19.Evidence that the required bank guarantee has been paid.
•Registration of natural persons to perform financial services:
Documents needed to provide the service:

1.A certificate that the applicant has not been convicted of a crime or misdemeanor affecting honor or public morals.
2.A first university degree as a minimum.
3.Successful completion of the accreditation course and the relevant examination.
4.A photocopy of the personal identification card.
5.A letter from his/her employer requesting registration.
6.Evidence that the required fees are paid.
•Renewing the license of financial services companies:
Documents needed to provide the service:

1.A response to the Commission’s circular in the form of an official letter requesting renewal of the financial services for which renewal is sought.
2.Filling the relevant application form of this service (L1), which is available on the Commission’s website or at the Customer Service Office at the Commission.
3.Sending all the documents requested in the above mentioned form in case of a change.
4.Evidence that the renewal fees have been paid.
5.Evidence that the bank guarantees have been renewed.
•Approval of request to open branches in the Kingdom or abroad:
Documents needed to provide the service:

1.Written request from the company requesting permission to open a branch.
2.The address of the branch.
3.The nature of the work that will be practiced at the branch.
4.The name or curriculum vitae of the branch manager.
5.The names and addresses of people working at the branch, showing the title and job description of each one of them.
6.A preliminary feasibility study for the branch.
7.The procedures adopted by the company for overseeing the activities at the branch.
•Renewing bank guarantees:
Documents needed to provide the service:

1.A covering letter stating the desire to renew the guarantee.
2.A valid guarantee.
•“To Whom It May Concern” Letters:
Documents needed to provide the service:

1.A letter from the company/registered person explaining the information regarding which the “To Whom It May Concern” letter is sought.

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