Announcement from the General Secretariat of CRSD Regarding the Issuance of ACRSD Decision No. (2010/L.S/2020) of 1442 H. Convicting Violator of the Capital Market Law and its Implementing Regulations

The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announces the issuance of the Appeal Committee for Resolution of Securities Disputes’ (ACRSD) final decision No. (2010/L.S/2020) of 1442 H., dated 02/02/1442 H., corresponding to 19/09/2020 G., in the case filed by the Public Prosecution (referred to by the Capital Market Authority (CMA)) against: Muhammad bin Mahdi bin Saleh Alzahrani.

The decision concluded with the conviction of the abovementioned individual in absentia for violating Article (31) of the Capital Market Law, as well as Article (5) of the Securities Business Regulations, for carrying out a securities business activity represented in “Management” by managing a number of portfolios in the USA capital markets, as such portfolios belong to a number of investors inside the Kingdom, in return for financial fees transferred to his bank accounts, without obtaining a license from the CMA.

The decision included the imposition of a fine amounting to (SR. 100,000) one-hundred thousand Saudi Riyals for these violations.

Furthermore, any person who has entered into an agreement or contract with the convicted person in relation to these violations is entitled to file a claim with the CRSD to request the rescission of the agreement or contract and the recovery of any money or other property paid or transferred by him under the agreement or contract, as per Article (60/b) of the Capital Market Law, provided that such claim is preceded by a complaint filed with the CMA on this regard, via the following  link (Link for submitting the complaint).