Quarterly Risk Report Preparation and Submission to the Central Bank, Including Audited Annual and Quarterly Financial Statements, Prudential Data, and Publication on the Company's Website
| No: 44028131 | Date(g): 27/10/2022 | Date(h): 2/4/1444 | Status: In-Force |
Translated Document
Based on the powers granted to SAMA under the relevant regulations and instructions, we wish to inform that crowdfunding institutions are required to adhere to the following:
| First: | Crowdfunding institutions must prepare a quarterly risk report to be discussed by the Risk and Credit Management Committee (if any) and the Board of Directors based on the senior management's review and the Board's approval of the necessary measures to address the risks mentioned in the risk report. The report must include at a minimum the following: | |
| 1. | A comprehensive assessment of the risks faced by the company as mentioned in Article (20) of the updated Rules for Engaging in Debt-Based Crowdfunding, including measures taken to mitigate these risks, and a review of the performance of financial positions exposed to market price fluctuations, as well the situations where the permitted transaction limits are exceeded. | |
| 2. | Assumptions and factors used in evaluating risks, including: risk categories, risk levels, frequency, risk units, and changes occurring in these areas. | |
| 3. | Analysis of situations where the institution has exceeded allowable limits, including reasons and the extent of new business developments and provisions set aside by the company. | |
| 4. | Evaluation of disclosure standards to ensure they cover understanding of funding opportunity risks. | |
| Second: | Provide SAMA with the report mentioned in item (1) above after it has been discussed by the Risk and Credit Management Committee (if applicable) and the Board of Directors and their approval, including the decisions taken, within 30 working days from the end of March, June, September, and December of each calendar year. | |
| Third: | Provide SAMA with quarterly financial statements and the auditor’s report within (20) working days from the end of March, June, and September each year. | |
| Fourth: | Provide SAMA with annual audited financial statements, the auditor’s report, and the Board of Directors' report within (45) working days from the end of the calendar year. | |
| Fifth: | Provide SAMA with annual and quarterly prudential data according to the attached approved forms, ensuring the accuracy of all data. Submit this data within (25) working days from the end of March, June, September, and December for quarterly prudential data, and within (60) working days from the end of the calendar year for annual prudential data. | |
| Sixth: | Submit the completed prudential data forms electronically in the required (Excel) format by the deadlines specified in item (5) above, along with a scanned electronic copy of the Certification Statement signed by the Chief Accountant, Chief Financial Officer (CFO), and Chief Executive Officer (CEO) or Managing Director, as applicable. | |
| Seventh: | The annual prudential data forms must be reviewed by the company’s external auditor before submission to SAMA and attach a copy of the audit report signed by the external auditor with the forms. | |
| Eighth: | Publish the auditor’s report, Board of Directors' report, quarterly financial statements, and annual audited financial statements on the company’s website within (10) working days from the due date. This should include: | |
| 1. | Balance Sheet. | |
| 2. | Income Statement. | |
| 3. | Cash Flow Statement. | |
| 4. | Board of Directors' Report. |