CMA: Conviction of a Violator of the Capital Market Law and Its Implementing Regulations for Providing Advisory Activities via Social Media Without a License and Fining Him SAR 250K

The Capital Market Authority (CMA) announces the issuance of a final decision by the Appeal Committee for Resolution of Securities Disputes (ACRSD) against a violator for violating Article (31) of the Capital Market Law as well as Article (5) and Article (17) of the Securities Business Regulations, and imposing a fine of SAR 250,000 for practicing a securities business without obtaining a license from CMA.
According to the decision of the ACRSD, Fahad bin Muhammad bin Saleh Alnafissah was convicted of violating Article (31) of the Capital Market Law as well as Article (5) and Article (17) of the Securities Business Regulations, for practicing a securities business, represented in the activity of “Advisory” through the social media App “Telegram” in exchange for receiving amounts of money, during the period between 26/10/2023 and 30/07/2024, and advertising through the account (@fah_oxo) on the social media platform (X), without obtaining a license from the CMA.
In its final decision, the ACRSD ordered the convicted individual to pay a fine of SAR 125,000 for violating Article (31) of the Capital Market Law and Article 5 of the Securities Business Regulations, in addition to another fine of the same amount for violating Article 17 of the Securities Business Regulations.
The CMA explained that the ACRSD final decision came as a result of joint coordination and cooperation between the CMA and the relevant concerned authorities, and in light of the public penal lawsuit filed by the Public Prosecution, referred to it by the CMA, against the investor for violating the Capital Market Law.
The CMA stresses the importance of investors' confidence in the capital market for its growth and prosperity. The CMA continuously monitors any violating behaviors, identifies the perpetrators, and processes the necessary procedures to impose deterrent penalties against them, in order to enhance the CMA's efforts aimed at creating an attractive investment environment for all categories of investors and safe from unfair or unsound practices or that involve fraud, cheating, misleading, deception or manipulation.
Furthermore, any person who has entered into an agreement or contract with the convicted person in relation to this violation is entitled to file a claim (as individual or class action) with the CRSD to request the rescission of the agreement or contract and the recovery of any money or other property paid or transferred under the agreement or contract, as per Article (60/b) of the Capital Market Law, provided that such claim is preceded by a complaint filed with the CMA on this regard, via the following  link (File Complaint Link).
The CMA indicated that the GS-CRSD announced to the public on its website the identity of the violator after the violations and sanctions were proven and the final decision was issued by the ACRSD. The said decision can be viewed through the following link:
Announcement of the GS-CRSD – Click here