The Capital Market Authority announces that the Appeal Committee for the Resolution of Securities Disputes has issued its decision dated 26/11/1436H corresponding to 10/09/2015 regarding the lawsuit filed by the Capital Market Authority against Fadi Khaled Fouad Tabbara. The defendant was convicted of violating paragraph (B) of Article (5), paragraph (A) of Article (24) of the Authorised Persons Regulations and the Standards number (10) and (11) of the Ethics Standards for Securities Trading attached as an appendix to Tadawul Trading Rules.
The defendant provided one of the investors, when he previously was the Head of Asset Management and the Chief Investment Officer (CIO) at Samba Financial Group, with information on the performance of funds and portfolios strategy which was under his management and supervision. The investor benefitted from the information in her investment decisions during the period from 07/11/2004 until 01/07/2006. The decision included applying the following fines and sanctions:
- Impose a fine on the defendant in the amount of (1,400,000) One Million and Four Hundred Thousand Saudi Riyals.
- Refrain the defendant from trading the shares of listed companies (buying) whether in person or on behalf on someone else for five years.
- Refrain the defendant from managing portfolios and working as an investment adviser for five years.
- Refrain the defendant from working in listed companies for five years.
The committee’s decision also included obliging the investor to pay (60,569,497) Sixty Million and Five Hundred and Sixty Nine Thousand and Four Hundred and Ninety Seven Riyals to Capital Market Authority’s account for the gains in her investment portfolio that realized as a consequences of defendant’s violation.
The Capital Market Authority insures its devotion to apply the Capital Market Law and its Implementing Regulations as well as protect the investors from illegal acts.
