Title: Announcement regarding issuance of Disciplinary Board Resolution No. (10/2025 Disciplinary Board) (04/2024 Authority) and imposition of a warning against: The Securities House Company for violating the rules of Conduct of Business and Financial Technologies

Announcement regarding issuance of Disciplinary Board Resolution No. (10/2025 Disciplinary Board) (04/2024 Authority) and imposition of a warning against: The Securities House Company for violating the rules of Conduct of Business and Financial Technologies

For the following reasons:
1. The provision of Article (1-2) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
2. The provision of Article (7-2) of the aforementioned Module Eight.
3. The provision of Article (7-4) of the aforementioned Module Eight.
4. The provision of Article (7-5) of the aforementioned Module Eight.
5. The provision of Article (3-5-1) of Module Nineteen (Financial Technologies) of the Executive Bylaws of the aforementioned Law.
6. The provision of Article (3-5-2) of the aforementioned Module Nineteen.

It was proven upon reviewing the promotional advertisement published on the Instagram platform on the following dates: 4/12/2024,6/12/2024 and,7/12/2024, through the account of “Zad” platform, operated by The Securities House Company, named "Join Zad," also published on an individual's account. The advertisement was intended to promote the automated investment advisor service, called "Robo Zad," provided by the Company through “Zad” electronic platform, which it operates, regarding responses to inquiries related to posts about the automated investment advisor service. Reviewing the promotional advertisement revealed the following:

A) The promotional advertisement did not include the following:
• A statement—in bold—indicating that it was prepared for promotional purposes.
• The name of the licensed person who issued the advertisement or approved its content.
• Accurate information identifying the investment risks.
• A pledge that no necessary information about the investment subject of the advertisement was omitted. 
• The warning in the advertisement that the past performance of this investment cannot be relied upon for future results.

b) The promotional advertisement mentions incorrect and unclear historical returns for the automated investment advisor service portfolios rated "Moderate" for the years 2022, 2023, and 2024, as shown in the following table:

It was also revealed that the returns mentioned above are theoretical and not real resulting from backtesting based on specific inputs and components that the Company entered through a public website, without the Company disclosing this in the aforementioned promotional advertisement.

The Resolution included the infliction of the following penalty: -
“Levying a warning against The Securities House Company for the attributed violation with consideration that it does not repeat it in the future”.

In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these Laws in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.