Article 7 of the Saudi Capital Market Law
المادة 7 من نظام السوق المالية
The article regulates the composition of the Capital Market Authority's Board of five members appointed by royal order, their terms, and its powers over internal regulations, delegation and review of delegated decisions.
Official text (Arabic)
This article has not been amended since the law was issued.
أ - يكون للهيئة مجلس يسمى ( مجلس هيئة السوق المالية ) يتألف من خمسة أعضاء متفرغين على أن يكونوا أشخاصًا طبيعيين سعوديين ومن ذوي الخبرة والاختصاص. ويتم بأمر ملكي تعيين أعضاء المجلس وتحديد رواتبهم ومزاياهم المالية، ويحدد الأمر الملكي من بين أعضاء المجلس رئيسًا ونائبًا للرئيس يحل محله عند غيابه.
ب - مدة العضوية في المجلس خمس سنوات قابلة للتجديد مرة واحدة، ويظل عضو المجلس في منصبه بعد انتهاء فترة عضويته إلى أن يتم تعيين خلف له.
ج - يضع المجلس اللوائح الداخلية للهيئة، وكيفية تعيين الموظفين والمستشارين والمدققين، وأي خبراء آخرين حسبما تقتضي الضرورة، من أجل القيام بالمهام والوظائف المناطة بها، ويحدد المجلس مقدار رواتبهم وتعويضاتهم.
د - يباشر المجلس جميع الصلاحيات المنوطة بالهيئة وفقًا لأحكام هذا النظام. ويحدد المجلس كيفية تنظيم وظائف الهيئة ومهماتها وأعمالها وتوزيعها فيما بين إدارتها وأقسامها الأخرى. وتحدد لوائح الهيئة الداخلية متطلبات أداء أعمال هذه الإدارات والأقسام، وباستثناء الصلاحيات والمهام التي ينيطها هذا النظام بالمجلس على وجه الحصر، يجوز للمجلس بقرار يتعين نشره أن يفوض أيًّا من مهامه. ومع ذلك يحتفظ المجلس حسب تقديره بصلاحية مراجعة التصرفات والقرارات التي قام بها من فوضت إليه تلك الصلاحيات. وتتم تلك المراجعة بناءً على مبادرة المجلس، أو طلب عضو من أعضائه، أو بناءً على طلب طرف في الدعاوى الناشئة في ظل أحكام هذا النظام وطبقًا للقواعد التي تصدرها الهيئة.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 7 explained in plain English
This article sets out the body that runs the Capital Market Authority, which is the Board of the Capital Market Authority (called "the Board" in Article 1).
Composition and appointment (paragraph a): the Board consists of five full-time members, who must be natural persons, Saudi, of experience and expertise. They are appointed by royal order that sets their salaries and financial benefits, and designates from among them a chairman and a vice chairman who acts in his place in his absence.
Term of membership (paragraph b): five years, renewable once, and the member remains in office after his term ends until a successor is appointed.
Internal regulations and staff (paragraph c): the Board sets the Authority's internal regulations, how employees, advisors, auditors and experts are appointed as necessary, and determines their salaries and compensation.
Powers and delegation (paragraph d):
- The Board exercises all the powers vested in the Authority, and determines the organization of its functions and their distribution among its departments and sections.
- It may, by a decision that must be published, delegate any of its tasks, except the powers the Law vests in the Board exclusively.
- The Board retains, at its discretion, the power to review the actions and decisions of those to whom it has delegated; the review takes place on its own initiative, or at the request of a member, or at the request of a party to proceedings arising under the Law, and in accordance with the rules the Authority issues.
The important practical point for those dealing with the Authority is that a party to proceedings arising under the Law can request the Board to review a decision issued under a delegation, in accordance with the rules the Authority issues.
Practical example
A decision was issued by a department of the Authority to which the Board had delegated, affecting a brokerage firm that is a party to proceedings arising under the Law. The firm may ask the Board to review that decision, and the Board retains its discretion over the review in accordance with the rules the Authority issues.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 7 of the Saudi Capital Market Law
How many members are on the Capital Market Authority's Board?
Five full-time Saudi members of experience and expertise, appointed by royal order.
How long is membership on the Authority's Board?
Five years, renewable once, and the member remains in office after it ends until his successor is appointed.
May the Authority's Board delegate its powers?
Yes, by a decision that must be published, except the powers the Law vests in the Board exclusively, while it retains the power to review the decisions of the delegate.
More articles on Capital Market Authority and Its Powers
- Article 4
The article establishes the Capital Market Authority, linked to the Prime Minister and independent financially and administratively, and prohibits it from trading, borrowing, lending or owning securities.
أ - تنشأ في المملكة هيئة تسمى ( هيئة السوق المالية ) ترتبط مباشرة برئيس مجلس الوزراء، وتتمتع بالشخصية الاعتبارية والاستقلال المالي والإداري، وتكون لها جميع الصل
- Article 8
The article requires Authority employees and Board members to disclose, upon assuming their duties, their securities and their relatives', and any change within three days.
يجب على كل من يصبح موظفًا لدى الهيئة، أو عضوًا في مجلسها، أن يفصح للهيئة فور استلامه مهامه، بالكيفية المحددة في لوائح الهيئة، عن الأوراق المالية التي يملكها أو
- Article 9
The article prohibits Authority Board members and employees from any other profession or work, from holding a post at any entity, and from advising private companies.
يحظر على أعضاء مجلس الهيئة وموظفيها ممارسة أي مهنة أو عمل آخر، بما في ذلك أن يشغلوا منصبًا أو وظيفة في أي شركة، أو في الحكومة، أو المؤسسات العامة أو الخاصة، كما
- Article 10
The article regulates meetings of the Capital Market Authority's Board: a call by the chairman, a quorum of three members including the chairman or vice chairman, majority decisions, and remote voting in emergencies.
أ - يعقد المجلس اجتماعاته بناءً على دعوة من رئيسه، ويشترط حضور ثلاثة من أعضائه على أن يكون من بينهم الرئيس أو نائبه، وتصدر قراراته بأغلبية الأعضاء الحاضرين، وإذ
- Article 11
The article makes the chair of the Capital Market Authority's board its chief executive, responsible for running it, carrying out the board's decisions, signing its documents and handling its administrative and financial affairs.
يكون رئيس المجلس هو الرئيس التنفيذي للهيئة، والمنفذ لسياستها، والمسؤول عن إدارة شؤونها، بما في ذلك ما يأتي : أ - تنفيذ القرارات التي يتخذها المجلس. ب - التوقيع
- Article 12
The article has the vice chair act for the Authority's chair when he is absent, unable to act or the post is vacant, and allows the chair to delegate some of his powers in a written and specific delegation.
أ - يقوم نائب الرئيس بأعمال الرئيس ومهماته في حالة غيابه، أو عدم مقدرته على القيام بمهام وظيفته أو شغورها. ب - يحق للرئيس تفويض بعض صلاحياته لعضو آخر من أعضاء ا
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.