The Saudi Capital Market Authority (CMA) has taken decisive action against two Swiss companies, imposing fines amounting to a total of SAR 4.2 million for contravening the Capital Market Law and the Securities Business Regulations.
According to an official statement released on Wednesday, the Appeal Committee for Resolution of Securities Disputes (ACRSD) issued a final verdict, finding Swiss International Marketing Co. and Swiss International Financial Services Co. (Swissfs) guilty. Each company has been fined SAR 2.1 million for the violations.
The violations included engaging in securities business activities without the requisite license from the CMA. These activities comprised dealing, managing, and advising on trading services, as well as the transfer of funds in exchange for services through the bank account of Swiss International Marketing Co. Moreover, the companies were found to have advertised these activities on the social media platform LinkedIn through Swissfs during the period spanning July 1, 2021, to December 29, 2021.
The Committee enforced the SAR 4.2 million penalty, equally distributed between the two companies, based on the infringement of Article 31 of the Capital Market Law, and Article Five and Article 17 of the Securities Business Regulations.
The CMA emphasized that any individual who entered into an agreement or contract with the convicted companies regarding these violations has the right to file a claim with the CRSD. This claim can request the annulment of the agreement or contract, and the affected individuals may recover any money or property transferred as part of the agreement. The CMA underlined the necessity for a prior complaint to be lodged with the authority to initiate this process.
Emphasizing the significance of investor confidence for the financial market’s growth and stability, the authority underscored that any illicit practices are deemed as criminal offenses, subjecting the perpetrators to legal accountability and the penalties stipulated in its regulations.
