CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (49/2022 Disciplinary Board) (20-33/2022 Authority) and imposition of a fine against Al-Riyada Finance & Investment Company for violating the rules of Securities Activities and Registered Persons
Announcement regarding issuance of Disciplinary Board Resolution No. (49/2022 Disciplinary Board) (20-33/2022 Authority) and imposition of a fine against Al-Riyada Finance & Investment Company for violating the rules of Securities Activities and Registered Persons.
For the following reasons:
1. Item (7) of Article (1-18) Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The Company provided the CMA with the audited annual financial statements on 30/03/2021 without holding its annual general assembly for the financial year that ended on 31/12/2020. It held the assembly on 27/6/2021, which exceeds the legally specified period of two months from the date of providing the CMA with the annual audited financial statements.
2. Provision of Article (3-2-11) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The Company cancelled the registration of the person registered with it as the Chief Executive Officer from the Licensed Persons Register as of 11/02/2021 without filling this position before the expiration of the legally specified period for filling the vacancy that ended on 11/02/2022.
The Resolution included the infliction of the following penalty: -
“Al-Riyada Finance & Investment Company is fined an amount of five thousand Dinars for the first violation and two thousand Dinars for the second 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.