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. (2674/L.S/2022) of 1444 H., dated 07/03/1444 H., corresponding to 03/10/2022, in the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against: the Islamic Investment Company of the Gulf.
The decision concluded with the conviction of the abovementioned Company for violating Article (31) of the Capital Market Law, as well as Article (5) of the Securities Business Regulations, by carrying out a securities business represented in the activity of “Managing" as well as “Dealing" and “Custody" in the Saudi capital market by managing investment funds and accepting subscriptions in such funds from investors within the Kingdom of Saudi Arabia and signing agreements with these investors through its representative in the Kingdom without obtaining a license from the CMA.
The decision included the imposition of a number of sanctions upon the said Company according to the following:
- Imposing a fine upon the Company amounting to (SR. 15,000,000) fifteen million Saudi Riyals for violating Article (31) of the Capital Market Law, and Article (5) of the Securities Business Regulations.
- Obliging the Company to cease carrying out securities business without a license.
- Obliging the Company to appoint certified auditors selected under the supervision of the CMA to list all the investments submitted by the Islamic Investment Company of the Gulf, the number of joined investors, and the total value of gains or losses according to the signed contracts with the investors, as well as setting a method for the supervision of the CMA to guarantee the liquidation of the Company's investment assets and the return of all investors' capital within the Kingdom.
