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Chapter Ten Sanctions and Penalties for Violations
Chapter Ten Sanctions and Penalties for Violations - Article Sixty Two

​a. The Board may issue a decision providing for a reprimand to the violator broker or broker’s agent, or may, pursuant to the decision, place restrictions on the licensed activities, functions or operations of the broker or the broker’s agent, suspend those activities for a period not exceeding twelve months, or revoke the license of any broker or his agent if the Board finds, after giving notice to the concerned broker or the broker’s agent and giving it an opportunity for a hearing, that such broker or the broker’s agent, whether prior or subsequent to obtaining a license has committed any of the following:

  1. He deliberately gave or caused to be given materially false or misleading statements in the broker’s or the broker agent’s application to obtain a license, in any document or report submitted to the Exchange or to the Authority.
  2. He deliberately violated, or assisted another person to violate any provision of this Law and its regulations.
  3. the broker or the broker's agent violated a judgment or decision issued by any court of the Kingdom or by the Committee for Resolution of Securities Disputes prohibiting him permanently or temporarily from carrying on brokerage or portfolio manager business.
  4. the Authority has formally been notified by a Securities regulator in another country that the broker or his agent willfully violated the Securities laws of that country or provided false and misleading information in the reports required to be submitted in such foreign jurisdiction.

b. The Board may issue a decision suspending the brokerage license pending the issuance of a final determination in relation to the revocation of the license, if such suspension appears to the Board, after giving the broker or the broker’s agent concerned notice and an opportunity to be heard on an urgent basis, to be necessary for the safety of the market and the protection of investors.

c. The Board may, in urgent cases, and without prior notice or hearing being granted to the concerned party to the decision, issue a decision suspending the license of a broker or barring the broker from performing such functions as a broker for a period not to exceed 60 days. Issuing such a decision does not prevent the Authority or the Exchange from taking such other actions against the broker or his agent as provided by this Law.