Saudi Arabia Capital Market Authority refers suspected unlicensed securities advising on Telegram and fee collection scheme to Public Prosecution

The Saudi Arabia Capital Market Authority announced that its board has referred to the Public Prosecution a suspected violation of Article 31 of the Capital Market Law and Articles 5 and 17 of the Securities Business Regulations involving two individuals. The case concerns alleged unlicensed securities business in the form of advising through a Telegram channel called Abu Abdallah with the username abo_3abdallah_chart, and alleged participation by a second individual who received subscription fees through his bank accounts and transferred them to the first suspect in return for a commission. The authority urged investors and market participants to deal only with capital market institutions authorized by the Capital Market Authority and not with unauthorized persons, whether natural or legal persons. It also noted that the General Secretariat of Committees for Resolution of Securities Disputes will publish the identities of convicted violators once final decisions are issued, and that anyone who entered into an agreement or contract with an unauthorized person may file a claim with the Committee for the Resolution of Securities Disputes to rescind the contract and recover money or other property transferred, provided the claim is preceded by a complaint to the Capital Market Authority under Article 60(b) of the Capital Market Law.