CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution No. (31/2021 Disciplinary – 35 and 37/2021 Authority)
Announcement Regarding Issuance of Disciplinary Board Resolution No. (31/2021 Disciplinary – 35 and 37/2021 Authority) and imposition of a fine of six (6) thousand Dinars against Amwal International Investment Company for violating the Securities Activities and Registered Persons - Clients' Funds and Clients' Assets - Conduct of Business - Corporate Governance.
For the following reasons:
First: Violating the provision of Article (3-2-11) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was conclusively proven to the Authority that the period of vacancy for the position of senior executives with the Company has expired since the date of February 10, 2021, as the registration of the Registered Person in that position has been canceled as of August 10, 2020 without the Company occupying this position to date.
Second: Violating the provision of Item (1) of Article (5- 1- 7) of Module Seven (Clients' Funds and Clients' Assets) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was conclusively proven to the Authority that the Company obtained approval by only 131 clients out of approximately 2080 clients to transfer their portfolios to NCM Investment Company.
Third: Violating the provisions of Article (1-2) of Module Eight (Conduct of Business) of the Executive Bylaws of the same law:
As it was proven to the Authority, beyond a reasonable doubt, that the Company appointed a consultant to the Audit Committee at the Board of Directors meeting on July 30, 2019 without concluding a work contract or a consultancy contract with the aforementioned consultant, which indicates the Company’s lack of the necessary professionalism in dealing with its employees, due to the importance of the contract to define the rights and duties of each party to the employment contract (company/employee).
Fourth: Violating the provision of Item (1) of Article (3-7) of Module Fifteen (Corporate Governance) of the same Executive Bylaws:
It was conclusively proven to the Authority that there is no strategic plan approved by the Company's Board of Directors for the financial year 2020.
Fifth: Violating the provisions of Item (8) of Article (5-7) of the same Module:
It was conclusively proven to the Authority that the CEO evaluated the performance of the Internal Audit Officer for the period ending on December 31, 2019.
Sixth: Violating the provisions of Item (9) of Article (5-7) of the aforementioned Module:
As it was conclusively proven to the Authority that there is no approved plan for internal auditing for the financial years 2019 and 2020.
Seventh: Violating the provision of Item (3) of Article (6-3) of the aforementioned Module:
It was conclusively proven to the Authority that the CEO evaluated the Risk Management Officer for the period ending on December 31, 2019, which constitutes an explicit conflict with the independence of that Risk Management department.
The Resolution included the infliction of the following penalty: -
First: - The violating Company is fined an amount of one thousand Dinars for each of the violations mentioned in the First, Second, Third, Fourth and Sixth items.
Second: - The violating Company is fined an amount of one thousand Dinars for the assigned violations in items Fifth and Seventh.
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.