The General Secretariat of Committees for Resolution of Securities Disputes (CRSD) announces the issuance of the Appeal Committee for the Resolution of Securities Disputes' (ACRSD) decision No. (1850/L.S/2020) of 1441 H. dated 06/05/1441 H. corresponding to 01/01/2020G., in the case filed by the Capital Market Authority (CMA), against: Abdullah bin Muhamad bin brahim Alfuzan (registered person). The ACRSD's decision concluded with the conviction of the aforementioned individual for violating Article (24/a) of the Authorised Persons Regulations by conducting, in his capacity as Board Chairman of the Investor for Securities Company and the Board Chairman of the Investor Digital City Real Estate Fund (Fund), practices and acts that involved violation to the principle of integrity stipulated in the Authorised Persons Regulations, during the time when the Investor Company was the manager of the Fund. Such violations are as follows:
First violation: the convicted person received amounts of money from the value of the contract which the Fund entered into with an independent legal advisor, without disclosing that to the Boards of Directors of the Company and the Fund.
Second violation: the convicted person received a broker commission on the Fund's land purchase, in form of money and units in the Fund, without disclosing that to the Boards of Directors of the Company and the Fund.
Third violation: a relative of the convicted person received an amount of money that is part of the broker commission on the purchase of the Fund's land, without disclosing that to the Boards of Directors of the Company and the Fund.
The decision included the imposition of a number of sanctions upon him as follows:
- Imposing a fine amounting (SR. 300,000) three hundred thousand Saudi Riyals.
- Banning him from practicing brokerage, portfolio management, or working as an investment adviser for a period of (5) years.
- Banning him from working in companies listed on the Exchange for a period of (5) years.
Furthermore, any person affected by these acts is entitled to file a compensation claim with the CRSD against damages he incurred as a result of these violations, provided that such claim is preceded by a complaint filed with the CMA on this regard via the following link: (click here).
