Title: Resolution No. (19) of 2024 Regarding the Cancellation of the Securities Activities License of Sword Capital Financial Brokerage Company and its Removal from the Licensed Persons Register at the CMA

Having Perused: 
- Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Executive Bylaws, and amendments thereto; and
- The securities activities license certificate of Sword Capital Financial Brokerage Company No. (AP/2019/0002) issued on 24/06/2022; and
- Based on CMA Board of Commissioners Resolution passed in its meeting No. (4) of 2024 held on 14/02/2024.

The Following Was Resolved
Article (1)
The securities activities license of (Securities Broker not Registered with an Exchange) of Sword Capital Financial Brokerage Company at the CMA is hereby cancelled, and it shall be removed from the licensed persons register at the CMA. The Company shall safe-keep the clients’ funds and assets until handing them over to the clients or to the party that is responsible to hold, manage or safe-keep them in accordance with Items (2) and (3) of Article (67) of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and amendments thereto, which stipulate that “The Authority may decline or suspend or revoke a license, or restrict the activity of a Person licensed to engage in the management of Securities activities, or any Person related to it, if it were given evidence that he has done one of the following:
…
2 - Fails to meet the standards applied under this Chapter or any other subsequent system or bylaws issued accordingly.
3 - Violates any provision, rule, regulation, or bylaws issued under this Law, or under any law related to its activity, or a Securities law, or rule or bylaws of another country.
…”.
And pursuant to Item (10) of Article (15) of Law No. 106 of 2013 on Anti-Money Laundering and Combating the Financing of Terrorism which stipulates:
“If a financial institution or designated non-financial business and profession or any of its directors, board members, executive or supervisory management members is found to have failed to comply with the provisions of this law, its Executive Regulation or any Ministerial decisions or instructions, the supervisory authority may impose one or more of the following measures or sanctions:
…
10- Withdraw the license”.

Article (2)
The Company shall handover the clients’ funds and assets to them or to the party that is responsible to hold, manage or safe-keep them within one calendar year from the issuance date of this Resolution.

Article (3)
The Company shall submit to the CMA a monthly report from the issuance date of this Resolution on the completion of the Company's business related to the clients’ funds and clients’ assets until the hand over is completed.

Article (4)
The Company shall meet all legal obligations set by Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Executive Bylaws and their amendments, for the period prior to the enforcement of this Resolution.

Article (5)
The concerned bodies shall execute this Resolution, each within its jurisdiction. This Resolution shall come into force from the date of its issuance, and it shall be published in the Official Gazette. 
 

Prof. Ahmad A. Al-Melhem 
Issued on: 20/02/2024

Copy of the Official Document