Saudi CMA protects investors against violators

04/11/2015 05:44 AST

The Saudi Capital Market Authority (CMA) ensures both investors and market participants that they have the right to file a complaint to CMA or to The Committee for the Resolution of Securities Disputes (CRSD) in case of unfair and unsound practices involving cheating, fraud and manipulation on securities business or in case of some violations related to the companies they invest in, the CMA stipulates on its website.

Article Five of the Capital Market Law states that CMA is responsible for protecting citizens and investors in securities business, in addition to issuing the regulating and implementing regulations it sees fit. When a complaint is received from any party in the capital market, the complaint is examined and verified to confirm its validity and then the necessary action is taken in accordance with the Capital Market Law and its implementing regulations. This includes the efforts to settle disputes between parties.

CMA lays down the three requirements that a complaint must fulfill for it to prosper, they are:

• First, it must be clear, in a written form, and against a person (natural or legal). It should also contain specific and logical demands and objections.
• Second, it must contain the complainant’s signature, ID number, address, and contact numbers. If the defendant is not authorized by CMA, his full address and contact information should be provided.
• Third, supporting documents must be attached with the complaint. As for the complainant, a copy of the National ID for Saudis and GCC citizens, the residence permit for non-Saudis, a copy of the passport for Resident Aliens Abroad, a copy of the commercial registration for companies and corporations, and the compliant should be signed by the person responsible and a copy of the power of attorney if the person filing the complaint is representing the complainant.
The Capital Market Authority receives the complaints that come under the rules of the Capital Market Law and its Implementing Regulations. Some examples of the complaints received at CMA:

• Complaints related to securities ownership registration.
• Investors’ complaints against authorized persons (brokerage firms).
• Complaints related to listing securities in the market.
• Complaints related to executing deals that do not include violation penalties.
• Complaints related to companies’ profits and shares’ certificates.
• Complaints related to investment funds.
• Any complaint related to a violation of the Capital Market Rules and its implementing regulations.

Saudi Gazette