CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (71/2022 Disciplinary Board) (72/2022 Authority) and the imposition of a fine against: Securities Group Company for violating the Rules of Clients’ Funds and Clients’ Assets.
Announcement regarding issuance of Disciplinary Board Resolution No. (71/2022 Disciplinary Board) (72/2022 Authority) and the imposition of a fine against: Securities Group Company for violating the Rules of Clients’ Funds and Clients’ Assets.
For the following reasons:
First: 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. The Company listed shares in limited liability companies within the portfolios for its clients, although the ownership of those companies are registered in the name of the Securities Group Company, which is against the segregation principle of the licensed person’s assets from the assets of the client.
Second: Provision of Article (5-2-3) of Module Seven (Clients’ Funds and Clients Assets) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. The company transferred the amount available in portfolio No. (1-2692) of the deceased client to the account of (the inheritors’ agent) and not to the account of each inheritor according to the Succession Certificate.
The Resolution included the infliction of the following penalty: -
“Securities Group Company is fined an amount of two thousand Dinars for the each of 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.