Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (23/2021 Disciplinary Board) (120/2020 Authority)
Date Publish 08 April 2021
The Capital Markets Authority announces the issuance of Disciplinary Board Resolution passed in its meeting held on Thursday April 8, 2021 on violation No. (23/2021 Disciplinary Board) (120/2020 Authority) against: Al-Madina for Finance and Investment Company.
The operative part of the Resolution resulted in the aforementioned being convicted of violating the following:
1. Provision of Item No. (3) of Article (9-1-5) of Module Seven (Clients' Funds and Clients' Assets) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the Authority conclusively that the Company does not comply with the provisions of the Investment Portfolio Contract No. (111476) dated October 28, 2020 which it manages. It was found that the transaction executed on November 9, 2020 on the shares of Al-Bareeq Holding Company was issued according to a written order from the client (White Diamond Company for Sale & Purchase of Real Estate for the Company's Account) dated November 4, 2020 by selling a number of shares with a value of KWD 200,000 as quickly as possible for any price available on the exchange.
2. Provision of Item No. (3) of Article (5-2-3) of Module Seven (Clients' Funds and Clients' Assets) of the aforementioned Executive Bylaws:
It became clear to the Authority that the administrative body registered with it and in charge of managing investment portfolios are all in charge of managing investment portfolios whose management mechanism is management by the company, the Company does not have an existing body to manage investment portfolios whose management form is management by the client, which causes the Company to be in violation of the non-separation of the administrative body which manages the clients' investment portfolios that are managed by the licensed person from those that are managed by the client.
The decision included the infliction of the following penalty: -
“The violating Company is fined an amount of one thousand dinars for each violation”.
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.
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