CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (02/2022 Disciplinary Board) (108-133-135/2021 Authority) and the imposition of a fine against: Kuwait & Middle East Financial Investment Company for violating the Rules of Disclosure and Transparency and the Provisions of Module Sixteen of the Executive Bylaws of Law No. (7) and their Amendments
Announcement regarding issuance of Disciplinary Board Resolution No. (02/2022 Disciplinary Board) (108-133-135/2021 Authority) and the imposition of a fine against: Kuwait & Middle East Financial Investment Company for violating the Rules of Disclosure and Transparency and the Provisions of Module Sixteen of the Executive Bylaws of Law No. (7) and their Amendments
For violating the following provisions:
1a) Provision of Article (4-1-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
b) Provision of Article (4-6-3) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The Company’s failure to disclose the impact on the Company’s financial position as a result of the issuance of the court judgment No. (6941/2019 commercial, civil, instance, government / 28) in favour of the Company on January 19, 2020, and then the issuance of the court judgment in its execution form on July 2, 2020, especially since the effect of that judgment reflected materially and significantly on the Company’s interim financial statements for the period ending on June 30, 2020 as a result of the value of the real estate entered into the Company’s budget, the effect of which was an increase in the Company’s assets (investment real estate) and its revenues of KWD 9,000,000 (nine million Kuwaiti Dinars) violating the provisions of the articles above.
2) Provision of Item (1) of Article (3-5-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The Company did not add some insiders to its list of insiders:
3) Provision of Item (2) of Article (3-19) of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The Company's failure to take strict due diligence measures on some high-risk clients.
Note that this article is procedural and not substantive.
The Resolution included the infliction of the following penalty: -
“Kuwait & Middle East Financial Investment Company is fined an amount of twenty thousand Dinars for what was attributed to it on the first violation and ten thousand Dinars for the second violation and five thousand Dinars for the third 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 rules 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.