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Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (64/2018 Disciplinary Board) (112/2018 Authority)
Date Publish 27 September 2018


The Capital Markets Authority announces issuance of a Disciplinary Board Resolution passed in its meeting held on Thursday 27/09/2018 on violation No. (64/2018 Disciplinary Board) (122/2018 Authority) filed against:

Cap Corp Investment Company

“First: the company shall be fined KWD 1000 for each of the two violations assigned to it, for transferring money not directly in the clients named accounts, and not keeping records or written orders for customer’s dealings”

The penalty is due to the violation of the following:

1.  Provisions of Clause (2) of Article (2-2) of Module Seven (Clients’ Funds and Clients’ Assets) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, for not complying with ensuring that the Client is the Interested Person of all his fund related transactions regarding money transfer in favor of some of their clients’ portfolios for transferring funds accounts not directly in the client’s named accounts, but to third parties, as shown in the table below:

 

#

Portfolio No.

Name of the Portfolio owner

Transfer Entity

Transfer Transaction Date

Amount (K.D.)

1

2026

National Industries Company

-------------------

28/06/2016

3,840

2

2016

-------------------

KAPICO Travel & Tours Company

08/01/2017

8,150

3

2016

-------------------

KAPICO Travel & Tours Company

20/07/2017

10,000

4

2016

-------------------

KAPICO Travel & Tours Company

03/01/2018

10,000

 

2. Provisions of Article (6-5) of Module Eight (Conduct of Business) of the same Executive Bylaws for not providing the inspection team with recordings of telephone conversations or written orders of executed orders in favor of the mentioned clients in the table below:

#

Portfolio #

Date

Transaction Type

Security

Quantity      (Shares)

1

2022

01/04/2015

Purchase

KFH

64,000

2

2022

03/04/2015

Purchase

KFH

50,000

3

2022

19/04/2015

Purchase

KFH

58,020

4

2033

24/03/2015

Sale

MAZAYA

300,000

5

2033

08/04/2015

Purchase

KFH

142,000

6

2033

15/06/2015

Sale

MAZAYA

645,261

7

2033

28/07/2015

Sale

KFH

225,000

8

2039

04/11/2015

Sale

LOGISICS

340,000

9

2039

03/12/2015

Purchase

GFH

500,000

10

2039

09/02/2016

Purchase

ZAIN

100,000

11

2039

18/02/2016

Sale

ALMADINA

114,700

 

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.

Disclaimer: The information provided on this page is for reference purposes only, visitors are encouraged to review and understand the information provided in the official scanned document attached in the link above (if available). The CMA endeavors to ensure that the information on this page is complete and accurate, but the CMA does not guarantee the quality, accuracy, or completeness of any content at any time. In the event the information on this page is different from the content in the official scanned document attached in the link (if available), the official scanned document attached shall take precedence.
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