Title: Announcement regarding issuance of Disciplinary Board Resolution No. (62/2022 Disciplinary Board) (21/2022 Authority) and the imposition of a fine against: Sword Capital Financial Brokerage Company for violating the rules of Securities Activities and Registered Persons

Announcement regarding issuance of Disciplinary Board Resolution No. (62/2022 Disciplinary Board) (21/2022 Authority) and the imposition of a fine against: Sword Capital Financial Brokerage Company for violating the rules of Securities Activities and Registered Persons.

For the following reasons:

1) Provision of Article (3-2-5) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
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:
3) Provision of Item (1) of Article (3-3-8) 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 in the position of Representative of Securities Broker not Registered in the Exchange from the Licensed Persons’ register as of 04/06/2021 despite the issuance of CMA’s approval on the Company’s request regarding its candidate to occupy the position of Representative of Securities Broker not Registered in the Exchange to register the position in accordance with the Fit and Proper Rules through CMA’s electronic portal on 08/07/2021. However, the Company did not fill the vacancy in spite of the expiration of the legal period specified for filling the vacancy on 4/12/2021. The Company filed the vacancy on 15/2/2022.

The Resolution included the infliction of the following penalty: -

“Sword Capital Financial Brokerage Company is fined an amount of two thousand Dinars for the attributed violations.”

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.