Ernst & Young Response to Saudi CMA Decision
Saudi Capital Market’s Authority (CMA) has announced yesterday that it has revoked the Securities Business License of Ernst & Young Consulting Limited, Saudi Arabia. We fully respect the CMA’s decision.
This decision is limited to the services provided by one of the entities of Ernst & Young in Saudi Arabia, Ernst & Young Consulting Limited, Saudi Arabia (EYCSA), and does not affect any other Ernst & Young entity in Saudi Arabia. The circumstances leading to that decision are not related to standards or quality of client service.
In 2005 it became apparent that certain of our existing Transaction Advisory services could possibly fall under the new regulations issued by the CMA. In accordance with these regulations, such activities required to be carried out under a separate legal entity. Hence, EYCSA was established and subsequently authorized by the CMA in 2006 to conduct regulated Advising and Arranging business in Saudi Arabia.
It is fair to say that expected business opportunities in the regulated Advising and Arranging marketplace did not emerge for professional services firms as hoped. Therefore, they did not form a significant part of Ernst & Young’s core Transaction Advisory services. These services have not been impacted in Saudi Arabia or anywhere in the Middle East. Our clients are not and will not be affected by the CMA’s decision.
Ernst & Young has been operating in Saudi Arabia for over 30 years and continues to provide Assurance, Advisory, Transactions and Tax services to a large number of local and multinational companies. We have over 4,200 professionals across the Middle East and North Africa who continue to provide the seamless, consistent, high-quality services our clients have been receiving from Ernst & Young for over 85 years.”
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