Saudi Arabia's Capital Market Authority announced three final decisions by the Appeal Committee for Resolution of Securities Disputes and the Committee for the Resolution of Securities Disputes convicting three individuals of violations of the Capital Market Law and implementing regulations. The decisions impose total fines of SAR 500,000 and include five-year bans in two of the cases. One decision fined Osama Wafiq Tawfiq As’ad SAR 100,000 for failing, during Mohammad Al-Mojil Group Company’s initial public offering process, to disclose material information in the prospectus regarding a decline in the value of ongoing projects in the first quarter of 2008, which influenced the initial valuation of the shares; he was banned for five years from portfolio management, investment advisory and working in CMA-supervised entities. A separate decision fined Bader bin Abdullah bin Hamad Alhammad SAR 200,000 for breaching integrity requirements as a registered person while chairing 99Hlala Capital Company (formerly Maceen Capital), including registering company-purchased land in his own name and transferring client money from a pooled client account through the firm’s account to his personal account between 15 January 2014 and 16 October 2019; he was banned for five years from brokerage, portfolio management, investment advisory and working in Saudi Exchange-listed companies. The third decision fined Muhammad bin Mahdi bin Saleh Aldraibi Alzahrani SAR 200,000 for providing unlicensed securities advising on shares listed on US exchanges via WhatsApp between 3 November 2021 and 30 March 2022; the CMA noted that the first and third cases were pursued via public penal lawsuits filed by the Public Prosecution following CMA referrals, while the CMA filed the second case. The General Secretariat of the Committees for Resolution of Securities Disputes said affected persons in the first and second cases may file compensation claims (including class actions) with the Committee for the Resolution of Securities Disputes. Those who entered into an agreement or contract with Aldraibi Alzahrani in relation to the unlicensed activity may seek rescission and recovery under Article 60(b) of the Capital Market Law, subject to first filing a complaint with the CMA, and any registered class action will be announced on the Secretariat’s website.
Saudi Arabia Capital Markets Authority 2025-02-13
Saudi Arabia's Capital Market Authority announces three final convictions with SAR 500,000 in fines and five-year bans
Saudi Arabia's Capital Market Authority penalized three individuals for Capital Market Law violations, imposing SAR 500,000 in fines and five-year bans in two cases. Osama As’ad was fined SAR 100,000 for IPO nondisclosure, Bader Alhammad SAR 200,000 for integrity breaches, and Muhammad Alzahrani SAR 200,000 for unlicensed advising. Affected parties may seek compensation or rescission.