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06
Discretionary Portfolio Management (DPM)
Authority, Fiduciary Duties, and Compliance Standards
This module examines Discretionary Portfolio Management (DPM), one of the most significant activities conducted by licensed CMIs in Saudi Arabia. It covers the definition and regulatory foundations of DPM, comparison with advisory mandates, the role of custodian and control functions, and investor risk classification and suitability assessment.
Learning Outcomes
1
Define the discretionary portfolio management mechanism.
2
Identify the fiduciary duties and compliance standards applicable to investment managers.
3
Understand recordkeeping, client onboarding, and reporting requirements.
Key Regulations
| Regulation | Relevance |
|---|---|
| Authorised Persons Regulations (APR) | Conduct of business rules for DPM providers |
| Capital Market Institutions Regulations (CMIR) | Governance and operational requirements |
| Investment Accounts Instructions | Rules for opening and operating investment accounts |
| Anti-Money Laundering Regulations | KYC and AML requirements for client onboarding |