“Prior approval” is a condition for marketing “trading” services via phone

The Securities and Commodities Authority has confirmed that marketing services and products subject to its supervision and related to securities and commodities trading services in the country via telephone calls is considered a violation if the company does not obtain prior approval from the Authority to practice the marketing activity.

In a recent circular issued yesterday, the Authority called on all recipients of marketing phone calls related to securities and commodities trading services in the country to inform it if they detect calls made in violation of the provisions and controls contained in the decision.

The Authority explained that this comes within the framework of its keenness to ensure that companies adhere to the provisions and controls contained in the Cabinet’s decision regarding the regulation of marketing via telephone calls, and in an effort to control violations and practices that occur in violation of the provisions of the decision.

She pointed out that the public can verify that companies have obtained the Authority’s license by visiting its website, to ensure that the company is included in the list of companies licensed to practice this activity, and that the public can report violating companies through the “Reporting Capital Markets Violations” service available on its website.

The Authority indicated that among the violating practices are: companies using any marketing methods that constitute unjustified pressure, for the purpose of convincing people of the product or service provided, or deception and misleading when marketing the product or service, in addition to making phone calls for the purpose of marketing during periods other than those permitted (from 9:00 am to 6:00 pm).

The violations also include the company not using local numbers issued by licensed telecommunications companies in the country, and not registering those numbers under the company’s commercial license when making marketing calls, in addition to receiving marketing calls from the company, despite being registered in the Do Not Call Register (DNCR).

The Authority issued a circular to all companies regarding the controls and procedures for marketing via telephone calls for securities and commodities trading services in the country, which came based on Cabinet Resolution No. (56) of 2024 regarding regulating marketing via telephone calls.

She explained that the decision entrusted the Authority with everything related to marketing phone calls for financial services regulated by it, and pointed out the necessity for all companies to fully comply with the Cabinet decision, in addition to obtaining prior approval from it in everything related to marketing phone calls for securities and commodities trading services in the country, taking into account the provisions related to marketing stipulated in the Authority’s legislation.

It stressed the need for companies licensed by it to instruct the parties contracted to provide marketing services via telephone calls on behalf of the company (the third party licensed by the Authority) to fully comply with the Cabinet’s decision and all other provisions, provided that this is stipulated in the agreements concluded with the third party, and to ensure that it has obtained prior approval from the Authority.

The Authority expressed its confidence in the companies’ cooperation to achieve the desired goals of the decision, and it also indicated that the Council of Ministers has determined the penalties that will be imposed on companies and natural persons in the event of violating the provisions and controls, pursuant to Cabinet Resolution No. (57) of 2024 regarding violations and administrative penalties for actions that occur in violation of the provisions of its resolution issued regarding the regulation of marketing via telephone calls.