Abdullah Al Turifi: The move promotes investor protection, minimizes risks, and reduces violations  

 The Securities and Commodities Authority (SCA) issued a circular concerning the internal audit reporting form for securities brokerage companies, requiring internal auditors there to prepare and keep quarterly periodic reports and submit them to SCA upon request.

 The form includes a part about ensuring compliance with the rules and regulations and another part about monitoring and classifying different corporate risks.

 Abdullah Al Turifi, CEO of SCA, said that this move comes to improve supervision of companies working in the securities field, promote and enhance self-regulation at securities brokerage companies by raising the effectiveness of the work of internal auditors there, which enhances compliance with the rules, regulations, and instructions issued by SCA and the markets, as well as to take preventive and corrective measures against potential corporate risk. This promotes investor protection and establishes sound principles among market participants. It is expected that this move will have positive implications in reducing violations and minimizing risks facing securities brokerage companies to the greatest extent possible.

 The circular, sent to brokerage companies, covers implementation mechanism and procedures as follows:

·        Adherence of internal auditors to the reporting form attached to the circular.

·        Adherence of internal auditors to prepare and keep quarterly periodic reports and submit them to SCA upon request.

·        The circular is effective as of the beginning of 2016.