Title: Announcement regarding issuance of Disciplinary Board Resolution No. (62/2023) Disciplinary Board - (77/2023) Authority and imposition of a warning against Al-Safat Investment Company for violating the rules of Securities Activities and Registered Persons

Announcement regarding issuance of Disciplinary Board Resolution No. (62/2023) Disciplinary Board - (77/2023) Authority and imposition of a warning against Al-Safat Investment Company for violating the rules of Securities Activities and Registered Persons

For the following reasons:
Violation of the provision of Item (3) of Article (2-2-3) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. 7 of 2010 of their amendments. This is due to the proof of a financial transaction in a form of overdraft from some subsidiary companies that dealt in instruments that were not in accordance with Sharia Standards (overdraft account). The Company repeated the same violation in spite of being warned twice of avoiding its commission in CMA’s two letters dated 23/9/2021 and 27/6/2022, in addition to the notices stipulated in the reports of the Sharia Supervisory Board and the External Sharia Auditor thereon.

The Resolution included the infliction of the following penalty: -
"Levying a warning against Al-Safat 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.