CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (129/2022 Disciplinary Board) (159,170/2022 Authority) and imposition of a fine against Ahli Capital Investment Company K.S.C.P for violating the rules of Conduct of Business and Dealing in Securities

Announcement regarding issuance of Disciplinary Board Resolution No (129/2022 Disciplinary Board) (159,170/2022 Authority) and imposition of a fine against:

Ahli Capital Investment Company K.S.C.P.

For violating the rules of Conduct of Business and Dealing in Securities.

For the following reasons: 

1. Violation of the provision of Item (1) of Article (6-5) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. The Company failed to record one of the telephone conversations made between one of its clients and the Clients Portfolios Manager.

2. Violation of the provision of Paragraph (c) Item (1) of (First: Mechanism and Conditions of Authorization) of Appendix 11 (Authorization of Trading in Securities) of Module Eleven (Dealing in Securities) of the Executive Bylaws of the mentioned Law. The Company approved an authorization of trading securities issued by a client that owns an investment portfolio which is managed by the latter (managed by the client) for the interest of another person without documenting it.

The Resolution included the infliction of the following penalty: -

"Issuing a warning on Ahli Capital Investment Company to stop committing 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 Laws 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.

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