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. (3011/L.S/2023) of 1445 H., dated 25/02/1445 H., corresponding to 10/09/2023, in the public penal case filed by the Public Prosecution (referred to by the Capital Market Authority (CMA)) against: the Swiss International Marketing Company and the Swiss International Financial Services Company (Swissfs).
The decision concluded with the conviction of the abovementioned entities for violating Article (31) of the Capital Market Law, as well as Article (5) and Article (17) of the Securities Business Regulations, for practicing securities business represented in “Dealing" and advertising the activities of “Dealing", “Managing" and “Advising" by providing trading services and receiving sums of money in return for such services, deposited in the bank account of the Swiss International Marketing Company, and advertising such activities via the Swiss International Financial Services Company (Swissfs) in the social media platform “Linked-in", during the period between 01/07/2021 and 29/12/2021 without obtaining a license from the CMA.
The decision included the imposition of the following sanctions upon them:
First: The Swiss International Marketing Company:
1) A fine amounting to (SR. 2,000,000) two million Saudi Riyals for violating Article (31) of the Capital Market Law, as well as Article (5) of the Securities Business Regulations.
2) A fine amounting to (SR. 100,000) one hundred thousand Saudi Riyals for violating Article (31) of the Capital Market Law, as well as Article (17) of the Securities Business Regulations.
Second: The Swiss International Financial Services Company (Swissfs):
1) A fine amounting to (SR. 2,000,000) two million Saudi Riyals for violating Article (31) of the Capital Market Law, as well as Article (5) of the Securities Business Regulations.
2) A fine amounting to (SR. 100,000) one hundred thousand Saudi Riyals for violating Article (31) of the Capital Market Law, as well as Article (17) of the Securities Business Regulations.
Furthermore, any person who has entered into an agreement or contract with the convicted entities 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 (click here).
However, the GS-CRSD will announce to the public on its website in case of registering any class action in order to enable the rest of investors affected by such violations to apply to the CRSD to join the class action.
