CMA refers unauthorized firms practicing securities business to Public Prosecution

Logo of Capital Market Authority (CMA)

Saudi Arabia’s Capital Market Authority (CMA) announced detecting practices by Swiss International Financial Brokerage Co. and Swiss International Marketing Co., where they were conducting securities business in the Kingdom without being authorized capital market institutions or exempt persons as specified in Annex (1) of the Securities Business Regulations.

Therefore, the market regulator decided to refer both companies to the Public Prosecution, it said in a statement today, Aug. 15.

This comes as part of the CMA’s responsibilities to protect citizens and investors from unfair and unsound practices, in addition to achieving fairness, efficiency and transparency in securities transactions.

The market regulator is committed to applying the Capital Market Law and its Implementing Regulations, and to protecting the market from illegal practices.

The CMA calls on all participants and investors in the Saudi capital market to limit their dealings in securities to capital market institutions that have been authorized by the CMA. The regulator further requests them not to deal with unauthorized persons, but to ensure that the persons with whom they deal have obtained the CMA authorization by visiting the CMA website.

Furthermore, any person who has entered into any agreement or contract with an unauthorized person is entitled to file a claim, individually or collectively, to the Committee for the Resolution of Securities Disputes to rescind the agreement or contract and recover any money or other property paid or transferred pursuant to such agreement or contract.