Title: The Capital Markets Authority Permits Granting a Reward to the Whistleblower
Date Publish 15 October 2020
Kuwait City – October 15, 2020, As part of CMA’s interest and ongoing follow-up of the current legislations and any required updates and modifications in light of the results of the pragmatic applications, and in a form that achieves the objectives of Law No. (7) of 2010 regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its amendments.
The Capital Markets Authority (CMA) has issued Resolution No. (105) of 2020 on Thursday October 15, 2020 in which it amends some of the provisions and rules of submitting reports for crimes and violations to the Authority that are included in the Executive Bylaws of Law No. (7) of 2010 regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments.
The Resolution included amending some Articles of Chapter Three (Reporting Violations and Crimes and Protecting a Whistleblower) and Appendix 5 (Regulating Rules of Receipt, Examination and Acting on the Reports) of Module Three (Enforcement of the Law) of the Executive Bylaws of Law No. (7) of 2010 regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities.
Generally, the amendment included the following:
- The entity receiving the reports at the CMA.
- The mechanism of submitting the reports electronically.
- Updating the procedures taken in the reports, from the submission of the report to its disposal, the approving authority, and what is related to the record of reports and the periodic reports.
- The mechanism of dealing with the unfulfilled reports in terms of format, and notifying the departments at the CMA of its topic in accordance with the competency.
- The possibility of granting an additional similar period to the whistleblower to fulfill the incomplete report during this period.
The previously mentioned is a result of CMA’s keenness regarding the reports it receives from the concerned entities, and to encourage them to take initiative. In implementation of the mentioned encouragement, the resolution added an article that permits the CMA to reward the whistleblower in line with some of the applications of comparative legislations which encourage the concerned entities to notify the CMA of the violations and crimes that occur within the framework of its competency, and encourage them to submit a report that is complete in format and contains serious information and incidents, which ends with an evidence of the violation according to the system established for this purpose.
Notes to Editors:
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance regulations, and protect investors from unfair practices which violate the CMA's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.
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