Title: Announcement regarding issuance of Disciplinary Board Resolution No. (123/2022) Disciplinary Board (132,142/2022) Authority, and imposition of a fine and a warning against each of: 1- KFH Capital Investment Company, 2- Shadi Ahmad Zahran - Head of the Internal Audit Committee in the Company, 3- Ahmad Saud Alkharji - Member of the Internal Audit Committee in the Company 4- Adel Ahmad Albanwan, - Member of the Internal Audit Committee in the Company for violating the rules of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments and Corporate Governance

Announcement regarding issuance of Disciplinary Board Resolution No. (123/2022) Disciplinary Board (132,142/2022) Authority, and imposition of a fine and a warning against each of:

1- KFH Capital Investment Company.

2- Shadi Ahmad Zahran - Head of the Internal Audit Committee in the Company.

3- Ahmad Saud Alkharji - Member of the Internal Audit Committee in the Company

4- Adel Ahmad Albanwan- Member of the Internal Audit Committee in the Company.

For violating the rules of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments and Corporate Governance

For the following reasons:

First: KFH Capital Investment Company.

For violating the following:

1. The provisions of Items (2) and (5) of Article (3-19) of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

As it was proven to the Authority, through examining a sample of clients in the high-risk category, that the Company did not take some strict due diligence measures, represented by obtaining additional information related to the sources of their funds, and obtaining the approval of the senior management to accept dealing with them, and only obtaining the approval of the Head of Compliance regarding dealing with them.

2. The provisions of Article (6-1) of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

As it was proven to the Authority that the Company did not take appropriate measures to ensure the implementation of all the obligations mentioned in the aforementioned Article.

Second: Each of:

1- Shadi Ahmad Zahran - Head of the Internal Audit Committee in KFH Capital Investment Company.

2- Ahmad Saud Alkharji - Member of the Internal Audit Committee in KFH Capital Investment Company.

3- Adel Ahmad Albanwan- Member of the Internal Audit Committee KFH Capital Investment Company.

For violating the following:

1. The provisions of Item (7) of Article (5-6) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

As it was proven to the Authority that the internal audit committee of the Company did not meet with the external auditor of the company and the internal auditor on a regular basis, at least four times during the year.

As the Audit Committee recorded the names of the auditors and the internal auditor in the minutes of the committee meetings, without the auditor or the internal auditor signing those minutes, as recording those minutes proves their attendance.

2. The provisions of Item (11) of Article (5-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.

As it was proven to the Authority that the Company's internal audit committee was not committed to reviewing the results of the control reports and taking the necessary measures in this regard.

Note that these violations are procedural, not substantive.

The Resolution included the infliction of the following penalty: -

"First: - Levying a fine against KFH Capital Investment Company in an amount of KWD 1,000 (one thousand Dinars) for the first attributed violation, and Levying a warning to stop committing the second attributed violation.

Second: - Levying a fine against each of the following:

1- Shadi Ahmad Zahran - Head of the Internal Audit Committee in KFH Capital Investment Company.

2- Ahmad Saud Alkharji - Member of the Internal Audit Committee in KFH Capital Investment Company.

3- Adel Ahmad Albanwan- Member of the Internal Audit Committee KFH Capital Investment Company.

An amount of KWD 1,000 (one thousand Dinars) on each of them for the second attributed violation.

Dismissal of the disciplinary case of the first attributed 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.