Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (97/2018 Disciplinary Board) (159/2018 Authority)
Date Publish 03 January 2019
The Capital Markets Authority announces issuance of a Disciplinary Board Resolution passed in its meeting held on Thursday 3/1/2019 on violation No. (97/2018 Disciplinary Board) (159/2018 Authority) filed against:
Massaleh Investment Company
“the company shall be fined KWD 2000 for each of the first and third violations assigned to it”
The penalty is due to the violation of the following:
- 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, regarding transfer of money available in client portfolios to external parties based on the request of the client.
- Provisions of paragraphs (c) and (e) of Appendix (1) of Clause (2) of Module Eleven (Dealing in Securities) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, for the following:
a. The valuation of the property in the State of Malta in the amount of KWD 18,043,075 listed in clause "Stock" in the statement of the financial position of the Company on 5/7/2018, 12/3/2018, in violation of paragraph (e) of the mentioned clause. The company conducted an asset valuation in Malta of more than two months from the date of the financial statements for the year ending on 31/12/2017.
b. The valuation of properties in Dubai and Lebanon amounting to KWD 3,009,639 is listed in clause “Stock” in the statement of the financial position of the Company on the basis of the sale transactions of similar properties. The valuation process used reflects more than the fair value of the properties. The company violated to valuation of real estate assets in paragraph (c) of the above-mentioned clause.
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.
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