CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (35-66/2022 Disciplinary Board) (207/2021 Authority) (101/2022 Authority) and imposition of a fine against: First: A’ayan Leasing and Investment Company. Second: A’ayan Leasing and Investment Company in its capacity as Awa’ed Real Estate Fund Manager for violating the rules of Clients’ Funds and Clients’ Assets and Disclosure and Transparency and Collective Investment Schemes and Corporate Governance
Announcement regarding issuance of Disciplinary Board Resolution No. (35-66/2022 Disciplinary Board) (207/2021 Authority) (101/2022 Authority) and imposition of a fine against: First: A’ayan Leasing and Investment Company. Second: A’ayan Leasing and Investment Company in its capacity as Awa’ed Real Estate Fund Manager for violating the rules of Clients’ Funds and Clients’ Assets and Disclosure and Transparency and Collective Investment Schemes and Corporate Governance.
For the following reasons:
First: A’ayan Leasing and Investment Company, for violating the following:
1. Provision of Article (2-3) of Module Seven (Clients’ Funds and Clients’ Assets) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, as it has been proven to the Authority the Company’s failure to correct the violating situation against which the Disciplinary Board Resolution was issued regarding violation No. (54/2018 Disciplinary Board 73/2018 Authority) on 20/09/2018, as it did not take the necessary measures to separate the Company’s assets from the assets of the client with the registered portfolio No. (1062) registered under the name of the Company, as shown in the table below:
# |
Portfolio Content |
No. of Shares |
Ownership Data According to the Documents Submitted to the Inspection Team |
1 |
IIB-Abu Dhabi Properties I Ltd |
381,664 |
A’ayan Leasing and Investment Company |
2 |
BIW Business Park Limited |
9,750 |
A’ayan Leasing and Investment Company |
3 |
Energy City Navi Mumbai Investment Co. |
2,396 |
A’ayan Leasing and Investment Company |
4 |
Investate Business Bay |
10,000 |
A’ayan Leasing and Investment Company |
5 |
Investate Waterfront |
10,000 |
A’ayan Leasing and Investment Company |
6 |
Mada’in properties PJSC |
1,561,000 |
A’ayan Leasing and Investment Company |
7 |
Al Maskar Real Estate Co. WLL |
28 |
A’ayan Leasing and Investment Company |
8 |
Plot C.01 in the Energy City Qatar Project |
117,066 |
A’ayan Leasing and Investment Company |
9 |
Dijlah & Furat Bank for Development & Investment |
8,750,000,000 |
No documents have been submitted |
2. Provision of Article (1-3-3) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, as it has been proven to the Authority that the Board of Directors held two meetings during the trading session, as shown in the table below:
# |
Meeting |
Meeting Date |
Meeting Time |
1 |
1/2020 |
29/01/2020 |
12:00 p.m. |
2 |
3/2020 |
09/03/2020 |
10:00 a.m. |
3.
a. Provision of Article (4-1-1) of Module Seven (Clients’ Funds and Clients’ Assets) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
b. Provision of Item (4) of Article (1-5) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
Where it was proven to the Authority that the Company did not correct the violation and the Disciplinary Board Resolution issued against it violation No. (54/2018 Disciplinary Board 73/2018 Authority) on 20/09/2018, where the situation of the contractual collective investment schemes was not regularized represented by the Sudan Real Estate Portfolio (First Portfolio of Sudan) and Nile Land Real Estate Portfolio (Second Portfolio of Sudan) in a manner that ensures the protection of the owners of those portfolios from the risks of their inability to prove their ownership as a result of registering assets in the name of Mr. Moaz Abu Obaida Ali.
4. Provision of Item (11) of Article (5-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, as it was proven to the Authority the failure of the Audit Committee to follow-up on the Company correcting its violation to ensure that the necessary measures have been taken regarding the Company’s violations against which the Disciplinary Board Resolution No. (54/2018 Disciplinary Board 73/2018 Authority) on 20/09/2018, which is in violation of the provision of Article (2 – 3) from Module (Clients’ Funds and Clients’ Assets), and Article (4-1-1) of the same Module, for the following:
a) The Company did not register all the assets of the client owner of the portfolio No. (1062) in the name of (A'ayan Leasing and Investment Company - Client Account).
b) Failure to regularize the situation of the assets of the contractual collective investment schemes represented by the first and the second Sudan portfolio, as all the assets of the two mentioned contractual schemes are registered in the name of Mr. Moaz Abu Obeida Ali.
Second: A'ayan Leasing and Investment Company in its capacity as the manager of the Awa’ed Real Estate Fund, for violating the provisions of items (1) and (4) of (Second: Requirements for the Real Estate Funds Assets) of Attachment No. (5 / Investment Control of the Real Estate Funds) of Appendix No. (4 / Investment Controls of Each Type of Fund) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
As it was proven to the authority that A’ayan Leasing and Investment Company, in its capacity as manager of the Awa’ed Real Estate Fund, had not corrected the violating situation, and the Disciplinary Board’s Resolution regarding violation No. (54/2018 Disciplinary Board 73/2018 Authority) on 20/09/2018, it did not transfer the ownership of two real estates to be registered under the fund’s name until the end of the inspection date, the real estates are mentioned in the table below:
# |
Real Estate |
Real Estate Origin |
The Type of Property Ownership Document Submitted to the Inspection Team |
1 |
Al Quoz Real Estate Industrial Area IIII |
U.A.E |
Land lease contract for the period from 01/06/2020 to 31/05/2021, the parties are as follows:
|
2 |
Dubai Investment Park Mall I |
U.A.E |
Land lease contract for periods from 01/02/2020 to 31/01/2025, the parties are as follows:
|
The Resolution included the infliction of the following penalty: -
“First: A’ayan Leasing and Investment Company is fined an amount of five thousand Dinars for the first and third violation and an amount of two thousand Dinars for the second and fourth violation.
Second: A’ayan Leasing and Investment Company in its capacity as Awa’ed Real Estate Fund Manager is fined an amount of five thousand Dinars for the 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.