On 4 May 2017, the Capital Market Authority (“CMA”) issued the Resolution No. 64 of 2017 pertaining to amending the Executive Bylaw of the CMA Law which comes into effect as of the date of its issuance. Some amendments have been made to the Module Three (Enforcement of the Law), the Module Eight (Code of Business Conduct) and the Module Fourteenth (Market Conduct).
The amendment made to the Module Eight referred to above is the issuance of a new Addendum to the said Module concerning “the Standards for Record Keeping Systems”. Under this amendment, the persons licensed to carry out any of the following securities activities (investment portfolio manager – securities broker registered on the stock exchange – securities broker not listed on the stock exchange – qualified securities broker registered on the stock exchange – custodian) shall make a reconciliation and comply with the technical requirements mentioned in the said Addendum, including developing policies and procedures manual for Record Keeping Systems and to provide the CMA with the same no later than 1 June 2018, while observing complying with all the provisions of the Module Eight of the Executive Bylaw.
The technical requirements stated in this Addendum are pertaining to the means of receiving and retaining the customers’ orders, including (telephone conversations – electronic correspondences – electronic trading – direct orders within the authorized person’s premises – written orders) and their consequent obligations and requirements, in addition to some other general requirements.
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