The Capital Market Authority has announced the start of receiving applications for applicants to obtain a financial technology experiment permit for the fifth batch.
This comes as a continuation of the series of successes of the Financial Technology Lab in its previous four batches, and in continuation of the Authority’s keenness to regulate and develop the Saudi financial market and make it an attractive environment for local and regional investors by supporting the financial technology industry and developing innovative products in the market.
The Authority is looking forward to receiving applications for obtaining a financial technology trial permit for the fifth batch of all those interested in financial technology and entrepreneurs until December 15, 2021, provided that their products meet the necessary requirements, most notably that they are among the securities activities regulated by the Authority, and that they are in an advanced stage of development. It allows it to be tested or tried, in addition to achieving growth and efficiency in the financial market in the Kingdom. The authority also clarifies that it receives applications from applicants during the year, and those applications received are evaluated and studied in batches.
The Financial Technology Lab is a legislative experimental environment that allows providers of financial technology products and services to test their innovative business models within specific criteria, time period and regulatory requirements and under the supervision of the Authority.
The laboratory receives applicants from inside and outside the Kingdom to experiment with financial products and services related to securities activity with innovative business models that are ready for testing in an experimental environment.
In this regard, the Financial Technology Authority supported the creation of a legislative and regulatory environment for financial technology products in the financial market, and worked on continuous development to attract innovative business models and emerging technologies that open new horizons to facilitate financing and stimulate investment in an effort to build economic entities that enhance the depth and diversity of the financial sector and are in line With the objectives of the Financial Sector Development Program, one of the main programs of the Kingdom’s Vision 2030.
It is noteworthy that the Authority launched the Financial Technology Laboratory in December 2018, and the laboratory received the first batch of applications for obtaining a financial technology experiment permit in February 2018, and the Authority continued its efforts to receive other applications in separate batches, and the Capital Market Authority Board issued its approval to issue 17 A permit to experiment with financial technology and provide five different products, in the areas of crowdfunding services, automated advisor services, offering and investing in debt instruments, and a permit to use distributed ledger technology (DLT) to arrange the issuance and preservation of securities and the social trading platform.
During the second half of 2021, amendments were adopted to the instructions for the financial technology experiment permit. The most prominent of these amendments included the addition of definitions to clarify the nature of the financial technology laboratory, as well as the addition of instructions for doing business in the financial technology laboratory.