SOCPA's Board of Directors approved the Regulations Governing the Non-Securities Financial Advisory Profession under Resolution No. (3/4), dated 05-07-1447 AH (corresponding to 25-12-2025). This came as part of the transfer of licensing authority from the Ministry of Commerce to SOCPA. The Board's resolution aims to regulate the non-securities financial advisory sector and enhance the quality and efficiency of professional services by establishing a clear regulatory framework. This framework defines the requirements and conditions for practicing the profession, the mechanisms for obtaining a license, and the professional standards that must be followed, all of which contribute to raising the quality of professional practice.
The regulations stipulate that the profession may not be practiced without a license issued by SOCPA. Licensed accountants who already hold a license to practice accounting and auditing in the Kingdom are exempt from obtaining a separate license to provide these services. The regulations also cover the organization of a licensee register and set out the licensing requirements, license duration, and renewal procedures. The regulations define the scope of the profession as providing professional advice on financial activities and transactions other than securities activities and transactions. They prohibit the provision of audit services, assurance services, or other related services governed by auditing standards and delivered by licensed accountants in the Kingdom. Additionally, the regulations prohibit the provision of services offered by those licensed to provide accounting services, zakat and tax accounting services, or any financial business or advisory services related to securities. The regulations further address licensee obligations, license revocation mechanisms, procedures for ceasing or suspending professional practice, and a disciplinary penalties system. Together, these measures protect client rights and strengthen professional discipline in the non-securities financial advisory sector.
This resolution reflects SOCPA's commitment to advancing the profession's regulatory environment and building confidence, contributing to higher-quality services and supporting the sustainability of the accounting and financial sector in the Kingdom.
The Board of Directors' resolution and the full text of the Regulations Governing the Non-Securities Financial Advisory Profession can be accessed by clicking here.