Title: Announcement Regarding Issuance of Disciplinary Board Resolution No. (64/2021 Disciplinary Board) (43/2021 Authority) and imposition of a fine of four thousand Dinars against 1) Osoul Investment Company. 2) Talal Yousef Al-Muzaini – (Deloitte Al-Wazzan & Co) in its capacity as auditor of the Company

Announcement Regarding Issuance of Disciplinary Board Resolution No. (64/2021 Disciplinary Board) (43/2021 Authority) and imposition of a fine of four thousand Dinars against 1) Osoul Investment Company. 2) Talal Yousef Al-Muzaini – (Deloitte Al-Wazzan & Co) in its capacity as auditor of the Company for violating the rules of Disclosure and Transparency and Corporate Governance and Clients’ Funds and Clients’ Assets.

For the following reasons:

First: Osoul Investment Company. It was proven that it violated the following:       
1. Provision of Item (1) of Article (3-5-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven that the Company did not submit a list of its insiders to the Authority on a regular basis and update it whenever there is any change.
The Company's insiders' lists were empty, despite the fact that the nature of their work classifies them among the insiders to the Company's inside information, which necessitated the Company to include them in its list of insiders.
2. Provision Item (1) of Article (11-3) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the Authority that the Company was not committed to setting up induction programs for the newly appointed members of the Board of Directors and Executive Management in violation of the aforementioned Item, especially since the Item mentioned above obliged the listed companies to pay attention to developing training programs for all their employees, the most important of which are induction programs for those newly appointed in the Company, in order to assimilate them to the nature of their work and the Companies work.  
3. Provision of Article (11-8) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the Authority that the Company did not prepare systems for the internal integrated reports, in accordance with the specifications mentioned in Article (11-9) of the same Module. 

Second: Mr. Talal Yousef Al-Muzaini – (Deloitte Al-Wazzan & Co) in its capacity as auditor of Osoul Investment Company, for violating the provision of Article (2-5) of Module Seven (Clients’ Funds and Clients’ Assets) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the Authority that the annual report for the financial year ending on December 31, 2019 prepared by the auditor on the investment portfolio management policy prepared and approved by the Company did not include the following: 
a. Determination of the risks associated with the investment portfolio and the securities it contains.
b. Maximum limits for concentrations in the components of the investment portfolio, for each type of security, the sector in which it is invested, the country in which it is invested, and the issuer of the security.

The Resolution included the infliction of the following penalty: -
“First: - Osoul Investment Company is fined an amount of one thousand Dinars for each of the violations attributed to it.
Second: - Mr. Talal Yousef Al-Muzaini (Deloitte Al-Wazzan & Co.), in his capacity as the auditor of Osoul Investment Company, is fined an amount of one thousand Dinars for the violation attributed to him”.

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.