Title: Announcement regarding issuance of Disciplinary Board Resolution No. (61/2022 Disciplinary Board) (40/2022 Authority) and imposition of a fine against Al-Masar Leasing & Investment Company for violating the rules of Securities Activities and Registered Persons and Policies & Procedures of Licensed Persons and Clients’ Funds and Clients’ Assets and Conduct of Business

Announcement regarding issuance of Disciplinary Board Resolution No. (61/2022 Disciplinary Board) (40/2022 Authority) and imposition of a fine against Al-Masar Leasing & Investment Company for violating the rules of Securities Activities and Registered Persons and Policies & Procedures of Licensed Persons and Clients’ Funds and Clients’ Assets and Conduct of Business.
For the following reasons: 
1. Provision of Item (2) of Article (3-2-6) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
As it has been proven that the person registered with the Authority in the position of financial manager performs tasks related to managing the Company’s clients’ portfolios in relation to the portfolios managed by the Company and executing the sale and purchase of shares for their benefit, despite the fact that it is not permitted to combine the position of the financial manager with the registered employment positions related to the activity of investment portfolio manager .
2. Provision of Article (3-2) of Module Six (Policies & Procedures of Licensed Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
As it has been proven to the Authority that the procedures for buying and selling securities for the benefit of investment portfolio clients are carried out through the financial and accounting department, despite the fact that these tasks are among the tasks of asset management in accordance with the financial and administrative authorities approved by the Board of Directors.
3. Provision of Item (d) of Article (5-3-2) of Module Seven (Clients’ Funds and Clients’ Assets) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
As it was proven to the Authority that the name of the person in charge of managing and executing the sale and purchase of shares for the benefit of client portfolios that are managed by the company was not mentioned in the company’s notification to the Authority, and of the existing administrative body authorized to manage each form of investment portfolios for clients and the Company’s portfolios.
4. Provision of Item (3) of Article (6-5) of Module Eight (Business Conduct) of the Executive Bylaws of Law No. 7 of 2010 and their amendments: 
As it was proven to the Authority that the company did not provide evidence that it recorded and kept the phone calls and electronic correspondences of the orders sent by it to the Watani Financial Brokerage Company to carry out the sale and purchase of shares for the benefit of the investment portfolios of its clients and managed by it, for the deals that were executed for the benefit of clients during the period from  1/1/2021 to 16/12/2021.

The Resolution included the infliction of the following penalty: -

“Al-Masar Leasing & Investment Company is fined an amount of one thousand Dinars for the first and second violation and one thousand Dinars for each of the third and fourth attributed violation”.

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 rules 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.