The Capital Market Authority (CMA) Grants a Financial Technology Experimental Permit (FinTech ExPermit) to Osool & Bakheet Investment Company to Create Equity Crowdfunding Platform.
Wednesday, November 04, 2020 at 4:19 PM
Wed Nov 4, 2020 16:19
Based upon the Capital Market Law issued by Royal Decree No. (M/30) dated 2/6/1424H, and reference to the Financial Technology Experimental Permit Instructions issued by CMA in 10/01/2018, which aims to provide a regulatory framework that is conducive for the innovation of Financial Technology (FinTech) in the capital market within the Kingdom. In relation to this, the CMA Board of Commissioners issued its resolution to grant Osool & Bakheet Investment Company a Financial Technology Experimental Permit (ExPermit) to create an equity crowdfunding platform.
Based on this permit, Osool & Bakheet Investment Company will be able to experiment the crowdfunding FinTech that allows investors to participate in funding small and medium size enterprises in exchange for shares in such enterprises. The service provided through an electronic platform owned and monitored by the company.
CMA would like to highlight that this permit coincides with the launch of the third batch for ExPermit of FinTech innovations which was announced in 25/11/2019, related to securities businesses that fall under the CMA's supervision. The CMA has opened the door for the fourth batch of applications for FinTech ExPermits on 01/10/2020.