3 capital market law violaters fined SAR 500,000

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The Appeal Committee for Resolution of Securities Disputes (ACRSD) convicted three investors for breaches of capital market laws, ordering them to pay a fine totaling SAR 500,000.

ACRSD issued its first final decision convicting Osama Asaad, Assistant Director of Investment Banking with the Financial Consultant for Mohammad Al Mojil Group amidst its IPO phase, after being held liable for not disclosing material information in Al Mojil Group’s IPO prospectus.

Under the decision, ACRSD imposed a fine of SAR 100,000 on Asaad and banned him from managing securities portfolios or working as an investment advisor for five years. Further, he was banned from working with any Capital Market Authority (CMA)-affiliated body for a five-year period.

ACRSD issued another final decision convicting Bader Alhammad (registered person) for violating Article (24/a) of the Authorized Persons Regulations, with a SAR 200,000 fine imposed on him.

In its third decision, ACRSD convicted Mohammad Alzahrani for violating Article (31) of the Capital Market Law as well as Article (5) of the Securities Business Regulations, for practicing securities business, represented in the advisory activity, without obtaining a license from the CMA. ACRSD also imposed a fine of SAR 200,000 on him.

Any person affected by these violations is entitled to file a compensation claim (as an individual or class action) with the ACRSD for the damage endured as a result, provided that such a claim is preceded by a complaint filed with the CMA in this regard.