Affected of Settling Securities’ Disputes Violations’ Compensation Values, Raised

Values paid to compensate for those affected by the settling securities’ disputes violations, have been raised.

That for those affected by errors and violations related to securities disputes, committed until the third quarter of 2021, by 128% compared to the Year 2020, while the increase rate amounted to 132% during the Year 2020, compared to the Year 2019, where the total compensation during 2021 amounted to SR214 million, in favor of 515 affected, compared to SR93 million to compensate 445 affected investors, in 2020 and SR40 million to compensate as many as 60 affected, in 2019, the General Secretariat of the Committees for Resolution of Securities’ Disputes announced.

Compensations against violators of the Market Conduct Regulations and Article (49) increased during 2021, as the total compensation amounted to more than SR133 million, as the value of compensation in 2020 was about SR17,000, while the value of compensation in 2019 amounted to SR352 thousand.

While the value of compensation for the collective action that was filed in accordance with the civil right, during the Year 2021, increased by 1538% to SR40 million compared to the Year 2020, where the value of compensation amounted to SR2.5 million, provided that no decisions were issued for the collective action, by the Appeal Committee during 2019.

It is noteworthy that the decisions issued by the Adjudication Committee are appealed, discussed, and studied by the Appeals Committee, and final decisions are issued, in their regard.

Organizing the collective action suits are published on its website, with the aim of facilitating litigation procedures, in cases which the plaintiff is a large group of people, who all share the same legal issues and the alleged facts, which is commensurate with the nature of the listed joint stock companies and the volumes of the shareholders.

The amendment also contributes to the development of litigation mechanisms and procedures, in line with international best practices, in a manner that enhances the attractiveness of the Saudi financial market and reduces the risks of investing in it.

In addition to its role in reducing the time required for deciding on issues of compensation for investors, to facilitate the work of the committees, on one hand and focus the efforts of investors, on the other.

General Secretariat of the committees for the settlement of securities disputes seeks to reach the highest degree of efficiency, in the litigation procedures of the committees, to ensure the achievement of complete justice, raise the confidence of litigators and achieve stability, in the financial market.