Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (78/2020 Disciplinary Board) (96/2020 Authority)
Date Publish 17 February 2021
The Capital Markets Authority announces the issuance of Disciplinary Board Resolution passed in its meeting held on Wednesday February 17, 2021 on violation No. (78/2020 Disciplinary Board) (96/2020 Authority) against: CapCorp Investment Company.
The operative part of the Resolution resulted in the aforementioned being convicted of violating the following:
1. Provision of Article (2-3) of Module Seventeen (Capital Adequacy Regulations for Licensed Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. The Company did not submit the capital adequacy report for the financial period that ended on June 30, 2020 (the second quarter of the financial year) to the Authority within the specified time limit, which ended on August 14, 2020. It was done on September 14, 2020.
2. Provisions of item (a) of Circular No. (6) of 2017 Regarding Reviewed Periodical Financial Statements and Annual Audited Financial Statements “Circular to All Licensed Persons Except Investment Funds”. The Company did not submit a copy of its interim financial statements for the financial period that ended on June 30, 2020 (the second quarter of the financial year) to the Authority within the specified time limit that ends on August 14, 2020 to date.
3. Provisions of the second paragraph of Circular No. (16) of 2019. The Company did not submit the first semi-annual risk report for the year 2020 (for the period from January 1, 2020 to June 30, 2020) to the Authority within the specified period that ended on August 29, 2020. The Company did not submit the report to the Authority until September 13, 2020.
The decision included the infliction of the following penalty: -
“Warning to the violating Company of the consequences of repeating the violations in the future for delay in submitting reports of capital adequacy, risks and financial statements”
In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these Laws in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.
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