Securities Regulation & Compliance Flashcards
6 cards from real CME-1 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Securities Regulation & Compliance flashcards as text
What is required before a listed company can conduct a rights issue in Saudi Arabia?
Answer: CMA approval of the offer documents and shareholder approval
A rights issue requires both CMA approval of the offering documents and a shareholder vote at a General Assembly, as it dilutes existing shareholders.
What is a 'profit warning' and when must it be disclosed?
Answer: An immediate disclosure when the company expects earnings to materially differ from market expectations
A profit warning must be disclosed immediately when a company reasonably anticipates that financial results will materially deviate from prior guidance or analyst expectations.
What are the consequences for a listed company that fails to meet continuing obligations?
Answer: Trading suspension, fines, and potential delisting by the Saudi Exchange
Failure to meet continuing obligations may result in trading suspension, regulatory fines, and in severe cases delisting from the Saudi Exchange.
Which body must approve the appointment of external auditors for CMA-licensed entities?
Answer: CMA under its licensing conditions
CMA-licensed entities must comply with CMA rules regarding the qualification, appointment, and rotation of external auditors as part of their licensing conditions.
What is the maximum term for an external auditor of a listed company without mandatory rotation under CMA rules?
Answer: 5 years
CMA Corporate Governance Regulations require external auditor rotation after a maximum of five consecutive years to preserve independence.
What is the purpose of the CMA's 'Authorized Persons Regulations'?
Answer: Establishing licensing requirements, conduct standards, and obligations for CMA-licensed firms
The Authorized Persons Regulations govern the licensing, capital requirements, conduct of business, and compliance obligations for firms holding CMA licenses.
How this page was made: written with AI tools and published by Nathan Beja, founder of Practice Test Geeks, who is responsible for its content. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy
Sources & references
Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy