CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution No. (69/2021 Disciplinary Board) (59/2021 Authority) and imposition of a fine of three thousand Dinars against EFG-Hermes IFA Brokerage Company for violating the rules of Policies & Procedures of Licensed Persons, Conduct of Business and Corporate Governance
Announcement Regarding Issuance of Disciplinary Board Resolution No. (69/2021 Disciplinary Board) (59/2021 Authority) and imposition of a fine of three thousand Dinars against EFG-Hermes IFA Brokerage Company for violating the rules of Policies & Procedures of Licensed Persons, Conduct of Business and Corporate Governance.
For the following reasons:
1) Provision of Item (13) of Article (2-1) of Module Six (Policies & Procedures of Licensed Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the Authority that there is no emergency plan approved by the Company's Board of Directors, despite the circumstances facing the economic sector in general.
2) Provision of Item (1) of Article (6-8) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the Authority, after listening to a number of phone recordings, that some brokers were not committed to identifying themselves.
3) Provision of Article (3-1) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The Company, represented by its Board of Directors, failed to prepare and approve a plan to extinguish the accumulated losses, which indicates the lack of a clear vision from the Company to improve its performance.
The Resolution included the infliction of the following penalty: -
“EFG-Hermes IFA Brokerage Company is fined an amount of one thousand Dinars for each 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.