Further to SAMA's instructions issued via Circular No. (63996/67) dated 27/10/1440H, which included SAMA's non-objection to contracting with persons licensed by the Capital Market Authority ("the Authority") for the purpose of distributing publicly offered investment funds ("the funds") through the electronic channels of banks.

Accordingly, SAMA would like to confirm that all banks  must adhere to the aforementioned circular in accordance with the following regulations:

1. The contract must be with the person licensed by the Authority solely for the purpose of distributing publicly offered investment funds.
    
2. The distribution of the funds must occur exclusively through electronic channels, and the bank should not be a party to the relationship between the client and the person licensed by the Authority. The client must be informed that the bank acts as an intermediary and that the funds are considered investment products of the licensed person, not banking products.
    
3. The client should not have the ability to open an investment account for the licensed person via the bank's electronic channels, and the role of the bank should be limited to filling out and signing related documents only.
    
4. Clients should be able to subscribe to the funds through the bank's electronic channels without the option to sell or cancel their subscription.
    
5. The subscription process for the funds will not be complete until the licensed person contacts the client and informs them of the fund's suitability.

This is for your information and should be implemented as of this date. SAMA also emphasizes the necessity of maintaining a separation between banking activities and investment activities.