MUSCAT: The Financial Services Authority (FSA) has issued an administrative decision imposing a fine on FINCORP, a leading investment banking company.
In a statement issued on Sunday, FSA (previously Capital Market Authority) said the fine on FINCORP was imposed “for violating the rules for segregation of customer funds under Article 157 of the Executive Regulation of the Capital Market Law issued vide Decision No. 1/2009.”
“The decision obliged the company to immediately segregate customer funds from company funds and cover the deficit in the customer account that resulted from the violation within 60 days and take the required procedures to protect customer funds in accordance with specific rules in that customer funds must be deposited and kept in one or more separate accounts from the company’s accounts titled “customer account”,” FSA stated.
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“Such funds include the amounts received from the customer for their purchases and the amounts received from intermediaries to settle the sales and dividends received on their account,” FSA pointed out.
“The company must use such amounts in the customer account to settle the obligations due to the stock exchange and other brokers resulting from the purchases made for the account of the customer. The company must provide FSA with periodical report on the segregation of customer funds as it specifies,” the statement said.
“FSA emphasizes the importance of compliance with the laws and regulations to ensure protection of customer funds and all participant parties,” the statement added.
