CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution No. (48/2021 Disciplinary Board) (45/2021 Authority) and imposition of a fine of three thousand Dinars against Watani Financial Brokerage Company for violating Policies and Procedures of Licensed Persons and Corporate Governance
Announcement Regarding Issuance of Disciplinary Board Resolution No. (48/2021 Disciplinary Board) (45/2021 Authority) and imposition of a fine of three thousand Dinars against Watani Financial Brokerage Company for violating Policies and Procedures of Licensed Persons and Corporate Governance
For the following reasons:
First: Provision of Article (2-1) of Module Six (Policies and Procedures of Licensed Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
Clause (6.7) of “Related Party Transactions Policy” prepared and approved by the Company conflicts with Clause (5) of Article (6-3) of Module Fifteen (Corporate Governance).
Second: Provision of Clauses (1) and (2) of Article (6-8) of Module Eight (Conduct of Business) of the Executive bylaws of the aforementioned Law and their amendments:
Some of the Company’s employees registered in the position of a representative of a Securities Broker Registered with an Exchange failed to introduce themselves when receiving telephone calls from the clients and failed to confirm the clients’ identity.
Third: Provision of Clause (5) of Article (6-3) of Module Fifteen (Corporate Governance) of the Executive bylaws of the aforementioned Law and their amendments:
The following was evident to the Authority:
- The Company’s risk management unit/department failed to review the transactions made with the related parties and failed to provide recommendations thereof to the Board of Directors.
- The Company’s risk management unit/department failed provide recommendations regarding the transaction signed with ------ Company to the Board of Directors.
The Resolution included the infliction of the following penalty: -
“The violating Company is fined an amount of one thousand Dinars for each of the attributed violations.”
In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these Laws in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.
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