CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (16/2023) Disciplinary Board - (164/2022) Authority and imposition of a warning against Sharq Investment Company for violating the Rules of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their Amendments

Announcement regarding issuance of Disciplinary Board Resolution No. (16/2023) Disciplinary Board - (164/2022) Authority and imposition of a warning against:

Sharq Investment Company

for violating the Rules of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their Amendments.

For the following reasons: 
Provision of Article (4-7) of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments, it was proven to the Authority, through the selected sample of clients whose transactions were closed, that the Company did not keep some records of due diligence procedures for that category during the period specified in the aforementioned article (five years from the date of closing the account).

It should be noted that these violations are procedural and not substantive.

The Resolution included the infliction of the following penalty: -

" Issuing a warning against Sharq Investment Company for the attributed violation.”

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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