CMA issues 106 penalty decisions against 357 violators in 2021

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The Capital Market Authority (CMA) and the Committee for the Resolution of Securities Disputes (CRSD) issued 106 penalty decisions in 2021 against 357 violators of laws and regulations, including 174 top executives and 137 investors, according to CMA's annual report.

The market regulator also noted that a total of 260 penalties were implemented against violators, which represent 73% of total penalties. Meanwhile, the authority is following up on the implementation of remaining penalties.

CMA's Penalty Decisions against Violators in 2021
Type of violation	Number	Implemented	Percentage of implemented decisions
Senior executives	174	130	74.7%
Investors	137	86	62.8%
Capital market institutions / registered persons	34	32	94.1%
Listed companies	12	12	100.0%
Total	357	260	72.8%

The authority said that the total amounts of fines and penalties issued against violators of the laws and regulations in 2021 amounted to about SAR 230.7 million, of which 19.5%, or SAR 44.95 million, were collected.

Investors came on top with SAR 206.1 million penalties and fines, of which SAR 27.7 million, or 13.4%, were collected. Meanwhile, SAR 14.1 million worth of fines were imposed on senior executives, of which about 48% were collected.

Total Amounts of Fines and Penalties in 2021
Type of violators	Total amounts of fines and penalties (SAR mln)	Total collected amounts (SAR mln)	Percentage of collected amounts from total fines and penalties
Investors	206.07	27.71	13.4%
Senior executives	14.10	6.75	47.9%
Registered persons	--	--	--
Listed companies	0.19	0.19	100.0%
Capital market institutions	10.35	10.30	99.5%
Total	230.71	44.95	19.5%

With regard to the type of violation, the fines and penalties imposed on violators of the market behavior regulations came on top with SAR 206.75 million, or 90% of the total fines and penalties, of which about SAR 28.5 million were collected.

Fines and Penalties By Type of Violation
Type of violation	Total amounts of fines and penalties (SAR mln)	Total collected amounts (SAR mln)	The percentage of collected amounts from the total fines and penalties
Market behavior regulations	206.75	28.52	13.8%
Capital market institutions regulations	8.09	8.09	100.0%
Corporate governance regulations	5.95	2.16	36.3%
Companies law	5.25	1.94	37.0%
Real estate investment funds regulations	1.97	1.97	100.0%
Rules on the offer of securities and continuing obligation	1.28	1.23	96.1%
Securities business regulations	1.02	0.69	67.6%
Anti-money laundering and counter-terrorist financing rules	0.20	0.20	100.0%
CMA's board decisions	0.14	0.14	100.0%
CMA's circulars	0.07	0.01	15.4%
Financial adequacy rules	--	--	--
Total	230.71	44.95	19.5%

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