The authorized persons regulations issued by the Capital Market Authority (regulations for financial institutions authorized by the CMA to do securities business in the capital market) state that there are 11 principles applied on authorized persons in securities businesses.

These principles, mentioned in Article 5, are a general statement of the fundamental obligations of authorized persons. They are intended to form a universal statement of the standards of conduct expected of authorized persons under these regulations.

Some of the principles that an authorized person must comply with are conducting its business with integrity, conducting its business with due skill, care and diligence, efficiency of management and control, and cooperation with regulators, including disclosing to the authority any material event or change in the authorized person’s business operations or organization.

Communications with clients by communicating information to them in a way which is clear, fair and not misleading, managing conflicts of interest fairly, both between itself and its customers and between a customer and another client are among the other principles.

CMA emphasizes the importance of reading the Capital Market Law and its Implementing Regulations by investors especially the authorized persons regulations to know their rights.

CMA issued a decision to apply the requirements and standards of corporate governance on authorized persons at the beginning of 2012. This is to raise the quality level in securities business and enhance performance to provide the best climate to invest in the market and increase confidence in it.