CRSD imposes SAR 15M fine on Islamic Gulf Investment for violating Capital Market Law

Logo of General Secretariat of the Committees for Resolution of Securities Disputes

The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announced the issuance of the Appeal Committee for Resolution of Securities Disputes' (ACRSD) final decision convicting The Islamic Gulf Investment Company, imposing a SAR 15 million fine on the company and obligating it to stop practicing securities business without a license, in addition to appointing certified accountants under the supervision of the Capital Market Authority.

The company was condemned for violating Article 31 of the Capital Market Law and Article 5 of the Securities Business Regulations, for carrying out a securities business represented in the management activity in addition to dealing and custody activities in the Saudi Exchange through managing investment funds and accepting subscription to them by investors inside the Kingdom, and signing agreements with them through its representative in the Kingdom of Saudi Arabia without obtaining a license from CMA.

The decision included imposing a number of penalties on the company, as follows:

1- Imposing a fine of SAR 15 million on the company, for violating Article 31 of the Capital Market Law and Article 5 of the Securities Business Regulations.

2- Obligate it to stop practicing securities business without a license.

3- Obligate the company to appoint certified accountants, to be chosen under CMA's supervision to review all the investments provided by the company, the number of investors in them, and the total value of profit or losses according to the contracts signed with investors, and to set up a special mechanism under CMA supervision that guarantees the liquidation of the company’s investment assets and the return of capital of all investors inside the Kingdom.

CMA also affirmed its keenness to preserve the rights of investors by strengthening its control procedures, continuous coordination with the competent authorities, and providing all necessary capabilities to support investors in obtaining their rights guaranteed by law.

The authority will supervise the company's selection of certified accountants and setting up a special mechanism that guarantees the liquidation of the company's investments and the return of capital of all investors inside the Kingdom.