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Mr. Bader bin Mohammed Balghanaim, Under-Secretary of the Autorité des marchés financiers for Legal Affairs and Law Enforcement, stated that on January 15, the Committee for the Settlement of Securities Disputes had sentenced several defendants of the group Mohammed Al-Mujal group for offenses ".
He added in an interview "Numbers" That this decision be publicly announced when it becomes final, as it may be challenged before the Securities Litigation Appeals Committee, stating that no class action with respect to this termination of employment has occurred. 39 is currently engaged on the committee.
And the class action relating to the "subscription period", announced on Yesterday, Stated that the persons affected by these violations have the right to request the collective claim, which does not affect the right of any investor harmed by irregularities to file a single claim with the Committee for the settlement of securities disputes .
With regard to the time needed to decide on certain cases, he pointed out that the Commission had tried to find a number of solutions to speed up the procedures, while considering that it was important to place adequate procedures for checking irregularities and gathering evidence.
He pointed out that the deadline for completion of securities issues in the Kingdom is shorter than in many developed and similar countries, after reviewing a number of international experiences in these countries.
He spoke about the details of the collective action mechanism, the expected benefits for investors in the financial market and its role in improving the reliability of litigation and the facilitation of procedures.
The text reads as follows:
D & # 39; First, It was noted in the Commission statement concerning Restrict collective action against violations of the actions of the group Mohammed Al-MujalIt is related to the subscription period in the shares of the company, what is the subscription period?
– The offenses committed on the shares of the group of group Mohammed Al-Mujal proceeded in two stages: the first concerned the stage of the IPO and concerned anyone who had subscribed or bought the shares of the company before the publication of its first financial statements on the market on 12/7/2008. Join the collective lawsuit.
The second step is related to post-subscription violations after a date 12/7/2008.
I would like to point out that a (preliminary) decision was issued by the Securities Dispute Resolution Committee on 15/1/2019, condemning The accused will be charged with the offenses charged to them in the period following the subscription.
This decision is final and reprehensible before the Securities Litigation Appeals Committee and will be announced to the public when its decision becomes final.
Do those affected by the crimes committed against the Mohammed Al-Mujal group (in the period following the subscription) have the right to join the recently announced collective action by the General Secretariat of the Settlement Commissions? securities litigation?
– The collective action announced yesterday on the website of the General Secretariat of the committees for the settlement of securities litigation related to (Subscription period), Allows people affected by such violations during this period to apply this request.
For those affected by the violations (after the subscription period), the AMF will announce publicly in the final decision of the Securities Litigation Committees regarding the criminal case against offenders during the period following the subscription. The last criminal case against the perpetrators will help speed up the examination of this case and its acceptance by the Committee. The Authority will continue to provide the necessary support to any investor seeking compensation for any breach of the market.
Note that this does not affect the right of any investor affected by such violations and by others, to submit a single claim to the Committee, provided that this is preceded by the filing of a complaint with the Commission.
Why does it take a long time to decide criminal cases of manipulation and misrepresentation?
– One of the most important challenges facing the Commission is the length of time it took to decide on specific cases. The Commission has made efforts over the past a number of treatments aimed at speeding up the procedures for settling these disputes, including the establishment of mechanisms to control these violations, which were discovered early.
At the same time, however, the TRA recognizes the importance of adequate procedures for the verification of irregularities and the collection of evidence of any act or practice that contravenes the provisions of the Capital Markets Act or regulations that the Authority is empowered to apply, and disclose, including to the offender's auditions, and documents relevant or important to the subject.
If the suspicions of criminal offenses are established before the Commission, the latter sends them back to the Public Prosecutor's Office to prepare the legal proceedings before the Committee for the Settlement of Securities Disputes. The proceedings are brought before them by attending the hearings, submitting legal decisions and appealing the Committee's decisions to the Litigation Appeal Committee. .
But it can be said that time-consuming cases are generally complex and complex and that the parties are multiple. Offenders sometimes try to conceal evidence that may be involved in these irregularities, particularly irregularities in the handling of companies' financial statements. Knowing that a number of international experiences in other advanced and peer reviewed countries have shown that the duration of securities issues in the Kingdom is shorter than in many of these countries.
In particular, the Authority's measurement indicators have shown a significant reduction in the average processing time of cases over the last period, and the Authority is making efforts to continue to reduce this period to new levels that the Authority aspires to achieve in the coming period.
Why does the Authority not compensate those affected by the violations immediately after the violations, restoring the situation as it was?
– The compensation of persons affected by market offenses (especially in cases of manipulation and deception) is subject to numerous legal and practical considerations. The Financial Markets Act has granted the Settlement Commission stock market litigation the right to hear claims for compensation from people affected by market offenses, The systemic elements of compensation (error, damage and causal relationship between them).
If such evidence is proven, the person will be compensated at the discretion of the Committee. In addition, the practice does not allow the Commission to compensate alone, especially since securities transactions are fast and instantaneous, thanks to the transfer of ownership and the circulation of securities by a large number of brokers on the market. financial market within a short time. Therefore, it is not possible to restore the situation without affecting a number of parties.
Is it possible to clarify the meaning of collective action? What is important for investors and individual shareholders?
– In short, it is a case filed by a group of people whose proceedings are shared for the same reasons, facts and requests.
The purpose of this lawsuit is to facilitate litigation in cases where the number of plaintiffs is significant, which is related to the nature of the publicly listed listed companies supervised by the Authority, in because of the large number of shareholders and their reduction in the time required to make a decision. Investor compensation issues.
Are there any financial charges to be paid by the investor when he wants to join the collective action?
– The claimant of the collective claim will often be responsible for no expense, which will reduce the financial burden of the concerned investors, which is considered the purpose of the organization of the action unless the complaining investor agrees with the principal complainant to appoint a lawyer. Amount paid to the lawyer.
How does a person know of a group action if they want to participate?
– by visiting the website of the General Secretariat of Securities Litigation Committees, where the Committee's decision to accept the class action limitation application is announced, as recently announced. in the website of the General Secretariat of Committees, Approve the restriction of an investor's class action against members of the board of directors of Mohammed Al-Mujal Group Company and of some of its managers and auditors, responsible for violations of the company's shares (at the stage of the IPO).
The secretariat of the separation committees stated in its statement that the plaintiff had sought to restrict the class action and to require the defendants to indemnify him for the harm done to his contribution to society as a result of the said violations, and indicated that any person affected by these violations during the said period could refer the matter to the Committee, (90) days from the date of this announcement, the Committee will examine the requests submitted to it in accordance with the usual procedures, through of the capital market authority.
In the event that an application for membership in the class action is submitted to the CMA, should another application be submitted to CRSD?
– In order to speed up the procedure of the bankruptcy proceedings, only submit an application to the capital market authority. If the conditions apply, the Commission refers the claim directly to the Securities Dispute Resolution Committee;
Are there any other lawsuits other than Al-Mojil employees at CMA – will collective action be available in the near future?
– Any investor may request the Commission to request the registration of a class action or join an existing class action where the necessary conditions are met, investors being able to initiate a class action involving similar rights.
What is the entity that considers investors' compensation claims related to securities?
– The Securities Litigation Committee is the body responsible for reviewing securities cases in general, including investor compensation claims in the field of securities. , and also holds a review of the bankruptcy proceedings.
The Commission's decisions are subject to appeal to the Securities Litigation Appeals Board, which enables it to perform its tasks more efficiently, including one of the most important steps in granting rights. and fair compensation to the investors concerned.
Should an investor in the financial market be the victim of manipulation, deception or fraud, can he file a claim directly with the Commission?
– The capital markets system has given the Commission the task of receiving the complaints before filing them with the Committee for the Settlement of Securities Litigation, which it strives to resolve in the future. in an amicable attempt to reach an amicable settlement between the complainant and the respondent in order to alleviate the burden of the proceedings. For both parties in a short time, the speed with which rights are transferred to homeowners is one of the goals that the AMC seeks to achieve in the marketplace.
I would like The number of complaints received by the Commission in the past year 2018 was about 2,500. The Commission was able to handle about 75% of the complaints through a friendly settlement between the two parties. (the complainant and the complainant). Instead of sending them back to the competent litigants, which speeds up the delivery of rights to the people concerned.
How can I complain to TRA? Should the complainant be present at Commission headquarters?
– The AMF is committed to facilitating the filing of complaints and mitigation measures for investors, especially residents outside the city of Riyadh, and not to bear the costs and expense of travel. In the context of the adoption of technical regulations to facilitate its work, the Commission has made it possible to lodge a complaint Application body for smartphones Or the TRA site Link:
https://cma.org.sa/Services/Pages/HowtoFileaComplaint.aspx
Investors who can not access the website may also Make a complaint by Send them to the mailing address of the Authority: (87171) Riyadh (11642), Or file a complaint Staff of the receipt of complaints from the Investor Protection Department of the Financial Market Authority – King Fahad Road – on the ground floor, the Commission has provided various means, including cases.
How can the complainant know what steps the Commission is taking in response to his complaint? For the body?
– In order to facilitate the complainant's access to the latest developments of his complaint, the Authority wishes to inform the complainant of any developments in his complaint by SMS and also allowed him to follow his complaint automatically without any further information. 39, it is necessary to go to the headquarters of the Commission or to contact the specialists Access to E-mail:
https://ibusiness.cma.org.sa/en/Pages/anonymousComplaintChecker.aspx
If there is no settlement between the complainant and the complainant at the CMA, what is the case in the present case?
– In this case, the complainant may address the securities dispute settlement committee after informing the complainant or 90 days after filing the complaint with the Commission. Securities litigation made it possible to file a complaint with the Committee electronically. :www.crsd.org.sa The application of the technical regulation to facilitate transactions in the financial market, and the plaintiff can also follow the evolution of his case on the website of the Secretariat, in addition to receiving and responding to the pleadings presented in the case and see all the developments that occurred during the procedure, increase the level of speed and efficiency in the decision making process.
The Commission has endeavored to organize and facilitate the resolution of disputes before the separation committees and has read the list of dispute settlement procedures relating to securities on its website, as well as various relevant information and data, including Guides explaining to investors the recourse mechanism. Before the Commission, a convenient format for submitting the case and common questions.
Does the mechanism for registering bankruptcy proceedings with the Securities Litigation Committee differ from case to case?
– There is no doubt that the request for restitution of a class action by the Commission on the settlement of securities disputes is supposed to include the requirements to be filled out in the individual case file.
In addition to other requirements, such as the fact of containing evidence that the applicant's complaint is consistent with other existing or potential disputes from the point of view of law, facts and applications, and This implies that the Commission's decision on the merits may have an impact on other similar or existing disputes.
Approval of the request to limit collective actions is left to the discretion of the Commission. These requirements are easy to verify in case of serious violations of listed companies, which should affect many of their victims.
On what basis does the committee accept the request for limitation of collective action?
– The Securities Litigation Committee, where it considers – at its discretion – to accept the restriction of class actions, whether or not its decision is based on a number of criteria that must be met. fulfilled to achieve the goals of collective action.
Such as systemic issues and facts common to the case rather than the legal problems and facts of each plaintiff, and that the collective action will be more efficient and productive than other methods of prosecution in practice, and will guarantee compensation for a larger number of people affected by offenses committed by the defendant.
What is the difference between a request for a restriction of a class action and an adhesion to a class action?
– The Class Action Request is the first application made by the person to the Securities Litigation Committee and posted on its website to allow the remaining affected persons to join the case.
Membership is the request subsequently received by the Committee to join the restricted case of the first person to submit the case.
When will the Commission make its decision to take collective action?
– the committee approves the class action when the number of applications reaches ten (10) requests within a minimum period of (90) days from the declaration of acceptance of the registration of the company. collective action, which does not prevent the plaintiff from joining the case, even after its adoption, 90 days from the announcement, unless the deadline is extended by the Committee.
If the securities dispute settlement committee does not accept the class action, what can the investor do?
– The list of procedures to follow in the event of a securities dispute dealt with such cases; The Committee requests the return of the collective action, without prejudice to the right of the applicant to complete the proceedings individually, in accordance with the provisions of this Regulation..
Is it permissible to withdraw from a class action?
– Any plaintiff who is a member of the class action may apply to discontinue unless the defendant claims to have been sued, they are not allowed to request the discontinuance before the defendant has it saved.
Who will act on behalf of other plaintiffs in a class action?
– Each class action must have a chief attorney Represents the rest of the other applicants, names it Prosecutors should seek to Protect the interests of the rest of the applicants and perform their duties at all stages of the proceedings.
Is the non-chief prosecutor of other complainants allowed to participate in the class action proceedings?
– Yes, at any stage of the proceedings, any of them has the right to present its defense or objections, or to oppose any action taken or proposed, In a way that is not inconsistent with the role of the Senior Prosecutor.
Are the parties to the class action informed of the panel's decision regarding collective action?
– All parties to the class action are informed of the committee's decision in this case and of the committee in cases where it is considered sufficient to declare this decision in the register of insolvency proceedings instead of informing the parts.
Is it permissible to terminate collective action by regulation?
– The Chief Public Prosecutor and the Defendant in a class action may enter into a settlement by submitting a written settlement proposal to the Board for the purpose of terminating the class action or by accepting a written settlement proposal submitted by the Board . The committee makes its decision to approve the by-law if it considers that the by-law is fair to the members of the class action, taking into account the case of the litigation in the collective action and the the opinion of the members of the class action regarding the settlement.
Does an applicant involved in a class action have the right to withdraw from the settlement after being approved by the Securities Litigation Committee?
– Yes, any plaintiff participating in the class action may declare its withdrawal from the approved settlement within 30 days of being notified of the settlement committee's agreement. The withdrawal of one of them does not affect the right to rule on its case individually.
Is it permissible to appeal decisions taken in respect of a class action?
– Yes, any party to the class action has the right to appeal the decisions rendered by the dismissal committee to the appeal board within 30 days from the date of notification, at the time of notification. except for the decisions stipulated in the list of procedures for resolving securities disputes as final. The appeal board declares its decision to accept the appeal and any party to the class action is allowed to participate in the appeal process.
What other compensation mechanisms other than a collective action?
– الآلية الحالية المتبعة للتعويض هي أن يتقدم المستثمر بشكوى منفردة للهيئة, وتتولى دراستها ومحاولة إجراء التسوية الودية بين المشتكي والمشتكى عليه وفي حال عدم التوصل لتسوية مرضية, يتم إشعار المشتكي بإمكانية إيداع شكواه لدى لجنة الفصل في منازعات الأوراق المالية, بعدها يتولى المشتكي إعداد لائحة دعوى بطلباته ويقدمها إلى أمانة لجان الفصل في منازعات الأوراق المالية, حيث تعقد اللجنة في الغالب جلسة لنظر الدعوى يحضرها أطرافها, كما يتم تبادل المذكرات الجوابية بين الطرفين, ومن ثم تصدر اللجنة قرارها في الدعوى, وتمهل الطرفين (30) يوما للاعتراض على القرا ر الصادر في الدعوى.
ما آليات التعويض الأخرى التي تعمل الهيئة على على تطويرها وإتاحتها للمستثمرين مستقبلا?
– عملت الهيئة في سياق مبادراتها وخططها الاستراتيجية على تطوير الآليات المناسبة لتعويض المستثمرين المتضررين, في السوق المالية, وذلك من خلال الاطلاع على أفضل الممارسات الدولية لآلية التعويض في الدعاوى المدنية والجزائية في مجال الأسواق المالية.
وتعمل الهيئة حاليا على تحديث أنظمتها وإجراءاتها سعيا للوصول إلى خيارات تعويض سريعة وتتناسب مع طبيعة وحجم الأضرار التي تلحق بالمتضررين من المخالفات المرتكبة في السوق, ومن ذلك مقترح إنشاء صندوق لحماية المستثمرين المتضررين يحدد فيه شروطه وأحكامه.
هل هناك تنسيق أو تشجيع من هيئة السوق المالية لمكاتب المحاماة والمحامين على التوكل عن أكبر عدد من المساهمين في قضايا الشركات المدرجة في إطار تفعيل الدعوى الجماعية?
– لا شك أن مكاتب المحاماة لها دور فاعل في المساهمة في تفعيل إجراءات الدعوى الجماعية; من خلال إيضاحها لموكليها الصورة الكاملة والدور الإيجابي لمثل هذه الدعاوى وما تحقق لهم من مصالح وتعويضات.
من جهة أخرى, أتاحت لائحة إجراءات الفصل في منازعات الأوراق المالية للمدعي الرئيس وأعضاء الدعوى الجماعية إمكانية التنسيق فيما بينهم إذا دعت الحاجة إلى تعيين محام يتولى مباشرة الدعوى الجماعية, بالإضافة إلى تحديد تعويضات المحامي.
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