Article 8 of the Saudi Capital Market Law
المادة 8 من نظام السوق المالية
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 الواقعة تحت تصرفه، أو تحت تصرف أحد أقربائه، وعن أي تغيير يطرأ بعد ذلك عليها خلال ثلاثة أيام من تاريخ علمه بالتغيير. كما يجب على من يكون وكيلًا عن الهيئة أن يقوم بهذا الإفصاح بما له صلة بالعمل الموكل إليه، بالكيفية المحددة في لوائح 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 8 explained in plain English
This article places a duty of disclosure on those who work at the Capital Market Authority, so that the Authority is aware of their financial interests in the market it oversees.
Who must disclose?
- Anyone who becomes an employee of the Authority.
- Anyone who becomes a member of its Board.
- A agent of the Authority, but only to the extent connected to the work entrusted to him.
What is disclosed? The securities the person owns, or that are at his disposal, or at the disposal of one of his relatives. Under the definition in Article 1, relatives are: the husband, the wife and minor children.
When?
- The first disclosure is made immediately upon assuming duties.
- Then any change to those securities must be disclosed within three days of the date of learning of the change.
How? In the manner specified by the Authority's regulations; the article does not set out forms or procedures and refers them to the regulations.
Note that the article imposes disclosure and does not itself address prohibiting ownership. Article 9 separately prohibits Board members and employees from practicing any other profession or work, or advising private companies and institutions.
Practical example
Sara was appointed an employee at the Capital Market Authority; she owned shares in a listed company, and her husband has an investment portfolio. On assuming her work she must disclose to the Authority her shares and the securities at her husband's disposal, and if she later learns that her husband sold part of them, she must disclose this change within three days of learning of it.
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 8 of the Saudi Capital Market Law
Must a Capital Market Authority employee disclose his shares?
Yes. Immediately upon assuming his duties he must disclose to the Authority the securities he owns or that are at his disposal or at the disposal of one of his relatives.
What is the period for disclosing a change in shares?
Within three days of the date the employee or member learns of the change.
Who are the relatives covered by the disclosure?
Under the definition in Article 1, they are the husband, the wife and minor children.
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 7
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.
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
- 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.