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 the CMA requirement for a 'Know Your Customer' (KYC) process?
Answer: Mandatory obligation for authorized persons to identify and verify client identity and suitability
KYC is a mandatory obligation under CMA Anti-Money Laundering and client protection rules for all authorized persons before onboarding clients.
What is a 'restricted period' in the context of share trading by company insiders?
Answer: A blackout period before earnings announcements when insiders cannot trade company shares
Restricted periods (blackout windows) prohibit insiders from trading company shares before the announcement of financial results or other price-sensitive information.
Which CMA rule governs margin trading in Saudi Arabia?
Answer: Margin Trading Regulations
The CMA Margin Trading Regulations govern the provision of credit by brokers to clients for the purpose of buying securities on margin in the Saudi market.
What must a licensed CMA firm do if it suspects a client is engaged in money laundering?
Answer: File a Suspicious Activity Report (SAR) with the relevant authority
CMA-licensed firms are obligated to file a Suspicious Activity Report (SAR) with the relevant anti-money laundering authority and must not tip off the client (tipping-off offence).
What is the function of the CMA's 'Market Surveillance' department?
Answer: Monitoring trading activity to detect manipulation, insider dealing, and market abuse
The Market Surveillance function monitors real-time and historical trading data to identify patterns indicative of manipulation, insider trading, or other market abuse.
Under CMA rules, what is required for a foreign company to list in Saudi Arabia?
Answer: Meeting CMA eligibility criteria for foreign listings, submitting specified documentation, and compliance with dual-listing rules
Foreign companies seeking a Saudi listing must satisfy CMA eligibility criteria, submit required Arabic documentation, and comply with dual-listing and continuing obligation requirements.
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