CMA says investor compensations hit SAR 389M in 2024
The Capital Market Authority (CMA) said that the value of compensation amounts awarded by final decisions issued by the Committees for the Resolution of Securities Disputes reached nearly SAR 389 million in 2024, a 59% increase compared to 2023.
In its annual report, the market regulator added that 921 investors received compensation in 2024, up from 597 in the previous year.
The CMA also stated that it issued enforceable decisions against 171 violators for regulations and rules under its jurisdiction, while following up on the implementation of 45 requests.
The report showed a continued improvement in the strategic indicator of the average litigation period, which improved to about four months in 2024 from over five months in 2023 marking a decline of 20%.
Through completing the necessary procedures to address violations of regulations and rules under its jurisdiction, the CMA aims to protect investors and participants in the financial market and to increase their confidence in the market.
As per the classification of violators, 35% of compensations were against those practicing securities activities without licenses, 25% against financial market institutions, 23% through class actions, and 14% against individuals and unlisted companies.
Compensations Awarded by Committees for Resolution of Securities Disputes
Category
2023
2024
Change (%)
% to Total
Against unlicensed securities business practitioners
61.93
137.12
+121%
35.2%
Capital market institutions
23.46
98.62
+320%
25.4%
Class action
19.53
90.83
+365%
23.3%
Against listed companies
0.12
4.03
+3258%
1.0%
Against violators of the Market Conduct Regulations and Article No. 49 of the Capital Market Law
5.94
3.08
(48%)
0.8%
Others*
134.36
55.33
(59%)
14.2%
Total
245.35
389.02
+59%
100.0%
*Includes compensation for investors against individuals and unlisted companies.
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