CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (75/2022 Disciplinary Board) (74/2022 Authority) and the imposition of a fine against: Sword Capital Financial Brokerage Company for violating the rules of Conduct of Business
Announcement regarding issuance of Disciplinary Board Resolution No. (75/2022 Disciplinary Board) (74/2022 Authority) and the imposition of a fine against: Sword Capital Financial Brokerage Company for violating the rules of Conduct of Business
For the following reasons:
1)
a) Provision of Item (10) of Article (66) of Law No. 7 of 2010 and their amendments:
b) Provision of Article (4-1) of Module Eight (Conduct of Business) of of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The Company failed to provide most of its clients with a copy of the contract between them.
2) Provision of Article (1-2) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The Company did not act with the required professionalism with all its clients, by sending an email to a number of its clients on 14/07/2020 to notify them that their deals on one of the commodities (Brent Oil) will be closed at the end of the trading session on 17/07/2020, despite the lack of evidence of the client's request or approval of the aforementioned closing.
The Resolution included the infliction of the following penalty: -
“Sword Capital Financial Brokerage Company is fined an amount of one thousand Dinars for each of the two 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.