CMA Press Release

On Information in the Social Media on Audit Results of a Company

THE Capital Market Authority is closely following up information circulating in the social media about an insurance company listed on MSM.

CMA as regulator  supervising  public joint stock companies and insurance companies, would like to emphasize the confidentiality of the information and statements obtained in the process of carrying out the regulatory function.

In this regard, we are  investigating whether  the information circulating in the social media and the violations were from the reports CMA prepares regularly and whether such information contain confidential or protected information under the law or professional conduct in addition to the impact of the timing of dissemination and circulation.

According to the laws and regulations of the capital market and insurance sector CMA is conducting onsite and offsite inspection and audit on all the companies regulated by CMA including the indicated company. Where any violations  or unsound practices are discovered CMA prepares an initial report submitted to the company to respond to the findings or take remedial action according to the legal requirements within specific time, thereafter CMA takes the appropriate action in coordination with the law enforcement authorities. In all cases the reports, statements and information and the findings of the inspection and audit remain confidential until the company disclose the same or CMA in light of the circumstances and according to the law and best practices.

It is noteworthy that owning to the sensitivity of the information CMA is dealing with and their impact on the prices of shares, any attempt to mislead the shareholders or investors or manipulation of shares’ prices or any attempt to influence the prices is a violation of the Capital Market Law.