CRSD issues final decision against violators for managing investment fund without license

Logo of General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD)

The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announced that the Appeal Committee for Resolution of Securities Disputes (ACRSD) issued a final decision, on Dec. 15, 2022, in the public penal case filed by the Public Prosecution referred to it by the Capital Market Authority (CMA) against Salman bin Abdullah Bin Saedan Real Estate Group and Salman bin Abdullah bin Muhamad bin Saedan.

They were condemned with violating Article 31 of the Capital Market Law, as well as Article 5 of the Securities Business Regulations, by carrying out two securities business works represented in the activity of managing and dealing as an agent in the Saudi Exchange. They received subscription fees from a number of investors for the purpose of using such amounts to subscribe to multiple investment funds, as well as managing an investment fund without obtaining a license from the CMA.

Fines worth SAR 200,000 and SAR 100,000 were imposed on the company and person, respectively, for violating the Capital Market Law.

Furthermore, any person who has entered into an agreement or contract with the convicted company or person in relation to these violations is entitled to file a claim as individual or class action with the CRSD to request the rescission of the agreement or contract and the recovery of any money or other property paid or transferred 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.

However, the GS-CRSD will announce to the public, in case of registering any class action, in order to enable the rest of investors who had entered into an agreement or contract with the convicted company or person to join the class action.