Title: Joint Press Release: The Capital Markets Authority Signs a Memorandum of Understanding with the Insurance Regulatory Unit
Kuwait, September 3, 2023- The Capital Markets Authority (CMA), represented by Prof. Ahmad Al-Melhem - Chairman of CMA Board of Commissioners - Managing Director, and the Insurance Regulatory Unit represented by Mr. Mohammed Sulaiman Al-Otaibi - Head of the Unit signed a memorandum of understanding regarding coordinating cooperation between the two bodies this Sunday morning at the CMA’s headquarters.
Based on CMA’s role in the fields of regulation and supervision of securities activity, and on public shareholding companies listed on Boursa Kuwait Securities Exchange which are subject to the CMA’s supervision in some of their procedures, and on all the persons dealing in this field, including insurance companies, and in view of what the legislator has decided regarding the role of the Unit in the areas of regulation and supervision of companies operating in the insurance activity, and at the same time the privacy and independence it ensures for the role of the Unit, in addition to what may result from the overlap of some competencies in the areas of work shared between the CMA and the Unit, it was agreed to sign a memorandum of understanding to avoid duplication of supervision. Both parties coordinated the collaboration in these areas in order to achieve synchronization and integration in work mechanisms and procedures between the State’s agencies, to reduce the procedural burdens on those dealing in this field, and to achieve effective supervision and ensure that work is completed as fully and as quickly as possible in order to ensure clearness, transparency and discipline.
This MoU comes within the efforts of the two parties to manage cooperation within the scope of licensed insurance companies and registered auditors. It also includes within its framework the field of corporate governance, the field of life insurance activities and money making operations, the field of inspection and judicial control, the field of financial reports for listed insurance companies, and registered auditors, procedures for following up on general assemblies, mergers and acquisitions, partial purchase offers and divisions, in addition to other areas common between the two parties.
The memorandum also supports the exchange of data, information and expertise between the two parties in order to enhance the practice of supervisory and regulatory tasks to raise the level of efficiency in completing work and in accordance with the best practices, taking into account the controls stipulated in the CMA’s law and its Executive Bylaws and the Unit’s Law and its Executive Bylaws.
The Insurance Regulatory Unit was established in accordance with Law No. (125) of 2019, and according to the Law, the unit regulates and monitors insurance activity in a manner characterized by fairness, transparency and competitiveness, develops insurance activity and its tools in accordance with the best international practices, and provides protection for those dealing in insurance activity, while the CMA regulates securities activity in a manner characterized by fairness, competitiveness, and transparency, provides protection for those dealing with securities activity, applies a full disclosure policy in a way that achieves justice and transparency, prevents conflicts of interest and exploitation of inside information, and works to ensure compliance with the laws and regulations related to securities activity.
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.
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