Saudi Arabia Capital Markets Authority announces final appellate conviction of Ertiyad Holding Group for unlicensed securities business and SAR 6.12 million fine

Saudi Arabia’s Capital Markets Authority announced that the Appeal Committee for the Resolution of Securities Disputes has issued a final decision convicting Ertiyad Holding Group of breaching Article 31 of the Capital Market Law and Article 5 of the Securities Business Regulations, imposing a financial penalty of SAR 6.12 million. The decision found that Ertiyad Holding Group carried on securities business without a Capital Markets Authority licence by conducting the activity of “acting as an agent”, receiving funds and investing them in the Saudi Exchange in return for a share of profits. The case followed coordination between the Capital Markets Authority and other relevant authorities and a public penal lawsuit filed by the Public Prosecution after referral by the Capital Markets Authority. The General Secretariat of the Committees for Resolution of Securities Disputes noted that any person who entered into an agreement or contract with the convicted entity in relation to the violation may file an individual claim or a class action with the Committee for Resolution of Securities Disputes to seek rescission and recovery under Article 60(b) of the Capital Market Law, provided the claim is preceded by a complaint submitted to the Capital Markets Authority. It also stated it will publish on its website when any class action is registered, enabling other affected investors to apply to join.