The GCC authorities review SCA’s study on financial inclusion and recommend a joint investor awareness campaign
The electronic connection experience between ADX and Tadawul was well received by participants
Issuing uniform investor numbers in the GCC financial markets is considered
The Securities and Commodities Authority (SCA) took part in the 20th virtual meeting of the Committee of Heads of the GCC Financial Market Authorities (or their equivalents). The meeting was chaired by His Excellency Dr. Obaid Saif Al Zaabi, SCA’s CEO. It discussed subjects related to fostering cooperation among the GCC financial markets to create a favorable environment that leads to integration among the GCC securities markets. The meeting also discussed an action plan for the implementation of the passporting regime across financial market regulators in relation to financial activities, services, products, or initial offerings. The GCC Financial Market Integration Strategy Working Group was assigned with devising an agreement (regulatory framework) for the intra-licensing of mutual funds and associated services.
It has also been agreed that member states will inform the General Secretariat within this month of any guidebooks or procedures they have implemented regarding the implementation of the IFRS 9 in light of the current conditions caused by the coronavirus pandemic. Each member state will take the actions it deems appropriate with regard to the IFRS 9 implementation.
The meeting reviewed the working paper presented by SCA on financial inclusion, which is the pursuit to facilitate and enhance the access of all segments of the society to financial services and to provide diverse, innovative, and affordable financial services through service providers. The heads of the GCC financial market authorities decided to plan a campaign to raise awareness and educate the GCC communities, provided that member states share their experience in financial awareness with the General Secretariat, which will coordinate with the concerned committees within the central banks to provide a perspective on a joint awareness-raising campaign.
Electronic connection and clearing between the Abu Dhabi Securities Exchange (ADX) and the Saudi Stock Exchange (Tadawul)
The meeting discussed the electronic connection between depositories within the GCC states as well as between the settlement and clearing bodies across the GCC. The experiences of ADX and Tadawul in electronic connection and clearing were reviewed. The committee lauded the experiences and thanked SCA and Tadawul for presenting the paper.
The committee also reviewed a paper presented by the Capital Markets Authority of Kuwait on the procedures implemented to improve the Know Your Client (KYC) form and the standardized database for the GCC nationals. It also reviewed a draft MoU between financial market regulators on joint cooperation to improve the procedures concerning the KYC form for the GCC nationals, and to conduct a comparative study to determine the KYC requirements that should be met upon opening a trading account with the competent authorities within the GCC.
Considering issuing uniform investor numbers in the GCC markets
The committee discussed a roadmap for implementing key initiatives to achieve integration within the GCC, including an initiative to consider the issuance of uniform investor numbers across various markets operating in the GCC states. It was recommended that the GCC financial market regulators coordinate with the financial markets (exchanges) to consider the possibility of implementing this initiative and to determine implementation requirements.
Developments concerning the MoU between the GCC financial market regulators were also reviewed.
Participants in the meeting included Khalifa bin Saeed Al Abri, Assistant Secretary General for Economic and Development Affairs at the GCC General Secretariat, and all members of the Committee of Heads of the GCC Financial Market Authorities.
The committee’s next meeting is scheduled on September 9 followed the next day by the 9th meeting of the GCC Ministerial Committee of Financial Market Regulators.