RIYADH: The Capital Market Authority (CMA) has advised investors to deal only with financial institutions licensed by the authority.
“They should not deal with unlicensed individuals or institutions,” SPA reported quoting the CMA.
In a statement, the authority explained that those engaging in activities related to stocks without license or approval will become vulnerable to regulatory sanctions.
At the same time, investors should communicate immediately to official channels on finding any unlicensed institution or individual conducting brokerage or advising on listed companies in the market, whether for buying or selling, through websites, forums or social networking sites, and newspapers or TV channels, or any other means.
The CMA also advised investors and traders to verify its online list of authorized persons and institutions while doing business.
The authority categorically stated that unauthorized individuals or institutions are not entitled to transact business in stocks, including buying and selling, and for a financial consideration.
The CMA received 11 complaints related to the unauthorized business of stocks during the past year, down by 72 percent over the previous year that recorded 39 complaints.
CMA urges investors to deal only with licensed institutions
