The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announces the issuance of the Appeal Committee for the Resolution of Securities Disputes' (ACRSD) final decision No. (3250/L.S/2024) of 1445 H., dated 07/09/1445 H., corresponding to 17/03/2024, on the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against: Erada and Riyada for Development and Commercial Investment Company, Abdulaziz bin Abdullah bin Abdulaziz Abanmi, Salman bin Sa'ad bin Muhammad Almalki and Musa bin Abdullah bin Bard Alrowaili.
The decision concluded with the conviction of the abovementioned entity and individuals of violating Article (31) of the Capital Market Law and Article (5) of the Securities Business Regulations, when Erada and Riyada for Development and Commercial Investment Company practiced securities business represented in (Arrainging, Managing, advising), and Abdulaziz bin Abdullah bin Abdulaziz Abanmi, Salman bin Sa'ad bin Muhammad Almalki and Musa bin Abdullah bin Bard Alrowaili participated in the same acts mentioned above through concluding contract titled “Provision of Financial and Administrative Advisory Services Contract" with an investor during the period from 21/10/2019 until 21/10/2020 without obtaining a license from the CMA.
The decision included the imposition of sanctions according to the following:
First: Erada and Riyada for Development and Commercial Investment Company:
Imposing a fine upon the Company amounting to (SR. 600,000) six hundred thousand Saudi Riyals.
Second: Abdulaziz bin Abdullah bin Abdulaziz Abanmi:
Imposing a fine upon him amounting to (SR. 100,000) one hundred thousand Saudi Riyals.
Third: Salman bin Sa'ad bin Muhammad Almalki:
Imposing a fine upon him amounting to (SR. 100,000) one hundred thousand Saudi Riyals.
Fourth: Musa bin Abdullah bin Bard Alrowaili:
- Imposing a fine upon him amounting to (SR. 100,000) one hundred thousand Saudi Riyals.
- Banning him from working in bodies under the supervisions of the CMA from Six months.
Furthermore, any person affected by these violations in this case is entitled to file a compensation claim (as individual or class action) with the CRSD for the damage he/she suffered from due to these violations, provided that such claim is preceded by a complaint filed with the CMA on this regard, via the following link: (File Complaint)
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.
