CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (86/2022 Disciplinary Board) (75/2022 Authority) and the imposition of a fine against: Mr. Ali Owaid Rukhais Awad for violating the rules of Collective Investment Schemes
Announcement regarding issuance of Disciplinary Board Resolution No. (86/2022 Disciplinary Board) (75/2022 Authority) and the imposition of a fine against: Mr. Ali Owaid Rukhais Awad for violating the rules of Collective Investment Schemes
For the following reasons:
1)
a. Provision of Article (2-35-5) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
b. Provision of Circular No. (2) of 2018 regarding all fund managers and liquidators complying with the specified period of the announcement or notification from Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The aforementioned, in his capacity as the liquidator of the First Real Estate Fund (under liquidation), did not comply with the deadline set to announce the date of the fund’s unit holders’ assembly, as he announced in the newspapers and the Securities Exchange on 12/04/2022 that the date of the unit holders’ assembly of the First Real Estate Fund (under liquidation) ) is 24/04/2022, and after not counting the day of the announcement and the day of the assembly, the announcement was seven working days before the date of the assembly.
2) Provision of Article (2-35-6) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The aforementioned, in his capacity as the liquidator of the First Real Estate Fund (under liquidation), did not comply with the deadline for sending notifications of the agenda, date and place of the unit holders assembly at least seven working days before assembly, as he notified the fund’s auditor on 19/04/2022, i.e. before two days of the convening of the assembly, and he notified the Authority in its letter on 20/04/2022, i.e. one working day before the assembly, as the date of the assembly that was held is on 24/04/2022.
3) Provision of Article (2-37-3) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The aforementioned non-compliance in his capacity as the liquidator of the First Real Estate Fund (under liquidation) to obtain the approval of the Authority before replacing the fund’s auditor, Mr. Rashid Ayoub Yousef Al-Shaddad (Rodl Middle East Firm - Burgan International Accountants), as it was noted through the fund liquidator’s letter dated 19/04 /2022 and received by the Authority on 20/04/2022 regarding the invitation of the assembly of unitholders of the First Real Estate Group Fund (under liquidation), as the letter included a notification to Mr. Ali Mohammad Ismael Kohry- Alsalheya auditing office (Legal Accountants) instead of Mr. Ayoub Yousef Al-Shaddad - Rodl Middle East Firm Burgan (International Accountants) who is registered as the fund's auditor in the data listed in the Authority.
4) Provision of Article (2-37-9) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The aforementioned, in his capacity as the liquidator of First Real Estate Fund (under liquidation), did not comply with the deadline set to provide the Authority with a report on the financial position of the fund reviewed by the fund’s auditor, and the record of the unit holders within three months from the date of replacing the fund’s liquidator, which ended on 8/5/2022, except that the fund's liquidator provided the Authority with the report on 18/5/2022.
The Resolution included the infliction of the following penalty: -
“Mr. Ali Owaid Rukhais Awad is fined an amount of one thousand Dinars for the first and second violation and one thousand Dinars for each of the third and fourth 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.