What are the procedures for submitting a report to the Capital Markets Authority about a violation or crime related to any of the securities activities?

This question is answered by a lawyer for securities activities in Al-Rashed, Al-Hadlaq and Al-Roudan Law Firm and Legal Consultations in accordance with the latest amendments to the executive regulations of the law establishing the Capital Markets Authority and regulating securities activity.

On March 21, 2021, the Capital Markets Authority issued Resolution No. 29 of 2021 regarding the provisions regulating the submission of reports and complaints about crimes and violations contained in Law No. 7 of 2010. This resolution included the amendment of Article No. (3-2) of Book Three (Law Enforcement) From the executive regulations of Law No. 7 of 2010 regarding the procedures for submitting reports of violations and crimes related to securities activities, where the amendment of the article stipulates that every person has the right to file a report with the Capital Markets Authority against any person, through the following means:

1. Complete the electronic communication form on the authority’s official website on the international information network (Internet).
2. Personal attendance at the authority’s headquarters during official working hours, and submitting a written communication according to the form prepared for this purpose by the authority.
3. Registered mail messages marked with acknowledgment of receipt, provided that the notification is submitted in writing according to the form prepared for this purpose by the Authority.

The notification must fulfill the following conditions:-

1. It should be written (paper / electronic) according to the method of its submission, and appended to the signature, name of the applicant, his capacity, date of submission, address, means of contact and telephone numbers. The reporter may appear in person to the Authority and submit the report orally, provided that a report is drawn up.
2. It should include a sufficient explanation of the facts of the crimes and violations reported, the time and place of their occurrence, the source, the manner and the occasion that made him aware of or aware of the reported incident, the names and capacities of the persons against whom they were reported, and any other information or evidence supporting the incident.
3. To attach to it what is in his possession of documents or documents supporting the reported incident.
4. The statement must include a precedent for submitting its subject to any party inside or outside the Authority, and what has been done about it

If the report does not meet these conditions, it is saved according to the established mechanism or referred to the concerned departments in the authority or to any other competent authority, as required by each case, taking into account that the notification included sufficient evidence and information of importance and seriousness and the extent to which the communication complies with the requirements and formal conditions required, based on the initial examination conducted by the authority receiving the communication.

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To book an appointment or request legal advice about the duties of securities companies in the optimal implementation of clients’ orders, we are pleased to receive your inquiries at (info@Taqneen.com).