RIYADH — The Saudi Capital Market Authority (CMA) slapped fines amounting to a total of SR4.2 million on two Swiss companies for violating the Capital Market Law and the Securities Business Regulations. The stock market regulator said in a statement on Wednesday that the Appeal Committee for Resolution of Securities Disputes (ACRSD) issued a final decision convicting Swiss International Marketing Co. and Swiss International Financial Services Co. (Swissfs) with imposing a fine of SR 2.1 million on each company. The two companies were convicted of practicing securities business without obtaining a license from CMA. Their securities business was represented in dealing and advertising the activities of dealing, managing and advising by providing trading services and receiving or transferring sums of money in return for such services, deposited in the bank account of the Swiss International Marketing Co., and advertising such activities via Swissfs on the social media platform LinkedIn during the period between July 1, 2021 and Dec. 29, 2021. The committee imposed the SR4.2 million fine equally between the two companies for violating Article 31 of the Capital Market Law, and Article Five and Article 17 of the Securities Business Regulations. The CMA stated that any person who has entered into an agreement or contract with the two convicted companies in relation to these violations is entitled to file a claim, jointly or severally, with the CRSD to request the rescission of the agreement or contract. The affected persons can recover any money or other property paid or transferred by them under the agreement or contract, provided that such claim is preceded by a complaint filed with the CMA. While stressing the importance of investors' confidence in the financial market for its growth and prosperity, the authority reminded all traders in the market that illegal practices are considered a criminal offense, and expose their perpetrators to legal accountability and impose the penalties stipulated in its regulations.
