The Capital Market Authority (CMA) announced today the issuance of the final decision from the Appeal Committee for Resolution of Securities Disputes' (ACRSD) convicting two companies of violating the Capital Market Law and the Securities Business Regulations and imposing SAR 2.1 million as a fine on each company.

The CMA reported that the Appeal Committee for Resolution of Securities Disputes (ACRSD) issued its final decision convicting the Swiss International Marketing Company and the Swiss International Financial Services Company (Swissfs) for practicing securities business represented in (Dealing) and advertising the activities of (Dealing, Managing and Advising) by providing trading services and receiving or transferring sums of money in return for such services, deposited in the bank account of the Swiss International Marketing Company, and advertising such activities via the Swiss International Financial Services Company (Swissfs) in the social media platform “LinkedIn”, during the period between 01/07/2021 to 29/12/2021 without obtaining a license from the CMA. The decision imposed a number of sanctions on them, including a financial fine of SAR 4.2 million divided equally between both companies for violating Article (31) of the Capital Market Law, as well as Articles (5) and (17) of the Securities Business Regulations.

The CMA clarified that any person who has entered into an agreement or contract with the two convicted companies in relation to these violations is entitled to file a claim, jointly or severally, with the CRSD to request the rescission of the agreement or contract and the recovery of any money or other property paid or transferred by him under the agreement or contract, provided that such claim is preceded by a complaint filed with the CMA on this regard via the following link (click here).

The CMA stated that the ACRSD final decisions came as a result of joint coordination and cooperation between the CMA, the Public Prosecution, and the relevant security authorities, and in light of the public penal case filed by the Public Prosecution, which was referred to by the CMA against a number of violators.

In this regard, the CMA stresses the importance of what investors' confidence represents for the growth and prosperity of the capital market. The CMA works continuously to monitor any behavior that violates the Capital Market Law, its implementing regulations and any regulations that the CMA is charged to enforce, find the perpetrators, and complete the necessary procedures to impose deterrent penalties against them. It is the CMA's efforts that aim to create an investment environment that is attractive to all categories of investors and safe from unfair or improper practices that involve fraud, deception, misrepresentation, misleading, or manipulation. The CMA also calls upon all market participants to consider illegal practices as a criminal offense, and perpetrators are subject to legal accountability and the imposition of penalties stipulated in the regulations that the CMA is competent to enforce.

The CMA also stresses that it will not hesitate to pursue financial market manipulators by monitoring their transactions based on its powers in accordance with the Capital Market Law, and using its advanced technical means that enable it to observe all transactions, monitor suspicious cases, and take the necessary legal measures in accordance with laws and regulations, in addition to coordinating with security authorities, each according to their powers, to track down anyone who attempts to manipulate or practice deception in the exchange market. This comes to achieve the CMA's objectives towards enhancing the efficiency of the exchange market, protecting its dealers and ensuring that they are not deceived or manipulated.

For further announcement's details, kindly visit the official website of General Secretariat of the Committees for Resolutions of Securities Disputes, via the following link:

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