Title: Press Release: Invitation to Participate in the Opinion Poll on the Proposed Amendments of the Executive Bylaws of Capital Markets Authority’s Law Regarding the Controls for Valuating or Studying the Decrease in the Value of Assets

Kuwait, August 23, 2023 - Within the framework of the Capital Markets Authority’s (CMA) pursuit to develop the supervisory environment of the capital markets in the State of Kuwait and in implementation of its strategic plans, this opinion poll was prepared, which includes a number of amendments to the Executive Bylaws of the CMA’s law related to the development of a supervisory organization for assets valuation. The amendments mainly amended Appendix No. (1) of Module Eleven of the Executive Bylaws of the CMA’s Law to include controls and minimum limits that shall be adhered to when valuating or studying the decrease in the value of any asset - not just real estate assets - listed in the financial statements in accordance with the requirements of the international accounting standards. The amendments also stipulate an addition in which the persons who practice the activity of investment advisor and asset valuator is required to comply with the provisions of the aforementioned Appendix. Furthermore, the amendments included special amendments to Module Thirteen of the Executive Bylaws of the CMA’s law, related to the provisions of Collective Investment Schemes, where it was added that the fund manager should valuate the fund’s assets in accordance with the provisions of the aforementioned Appendix.

It should also be noted that the controls of assets valuation stipulated in the proposed amendment to Appendix No. (1) of Module Eleven previously mentioned were based mainly on our study of the regulatory legislations and controls related to the valuation of assets in the State of Kuwait and the study of the experiences of a sample of the regulatory authorities in other countries, in addition to reviewing the International Valuation Standards (IVS) issued by the International Valuation Standards Council (IVSC).

This approach aims to oblige companies and asset valuators to adopt these standards when preparing their technical reports on valuating assets or studying the decrease in their value in order to raise the level of competence of professional valuators and increase the confidence of persons dealing in the valuation processes. It also aims to enhance the investment environment in the State of Kuwait and to ensure consistency and stability in practicing the process of asset valuation of entities subject to the CMA’s supervision.

In conclusion, and within the framework of the CMA’s keenness and its belief of the importance of surveying the opinions of those concerned with asset valuation in order to take into account their aspirations in the continuous updates it issues on the Executive Bylaws, the CMA would like to invite you to participate in an external opinion poll on the controls for valuating or studying the decrease in the value of the assets included in the financial statements in order to limit all observations and proposals in this regard in preparation for the completion of the legal reviews for the approval of the necessary local regulatory and legislative amendments to these controls.

You can view the draft proposed amendments to the Executive Bylaws of the CMA’s Law regarding the controls for valuating or studying the decrease in the value of assets and submit opinions and proposals in this regard by visiting the website of the opinion poll no later than 07/09/2023. You can access the website by scanning the following QR code:

https://cma.gov.kw/ar/web/cma/new-survey-august-text

Ends-
Notes to Editors:
The Capital Markets Authority (CMA) of Kuwait was established pursuant to Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, and its amendments, approved by the Kuwaiti Parliament in February 2010. Under this Law, the CMA regulates and supervises securities activities, ensures transparency, fairness, efficiency, and observes listed companies’ implementation of Corporate Governance regulations. The CMA also protects investors from unfair practices and violations of 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.
For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw