Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (95/2018 Disciplinary Board) (160/2018 Authority)
Date Publish 10 January 2019
The Capital Markets Authority announces issuance of a Disciplinary Board Resolution passed in its meeting held on Thursday 10/01/2019 on violation No. (95/2018 Disciplinary Board) (160/2018 Authority) filed against:
Dimah Capital Investment Company
“the company shall be fined KWD 2000 for each of the five violations assigned to it”
The penalty is due to the violation of the following:
First: Proving the violation of Dimah Capital Investment Company of the provisions of Law No. 7 of 2010 regarding the establishment of the Capital Markets Authority and Regulating Securities Activities and its amendments as follows:
- Provisions of clause (1) of article (67) of the law mentioned above:
Due to the company providing the Authority with misleading information for the change of its clients' portfolios in the quarterly reports of the investment portfolios in the company's securities sent to the Authority on 3/1/2017 for the fourth quarter of 2016 and 2/4/2017 for the first quarter of 2017 according to the provisions of clause (2) of article (5-3-2) of Module Seven (Clients’ Funds Clients’ Assets) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, as these statements do not reflect the reality of Ream Real Estate Company’s portfolio No. (200109).
Second: Dimah Capital Investment Company's violation of the provisions of the Executive Bylaws of Law No. 7 of 2010 and their amendments, as follows:
- The provision of Article (6-1) of Module Eight (Business Conduct) of the Executive Bylaws of the CMA law of:
The company did not submit to the CMA inspection team the transactions executed for portfolio no. (100101) on 3/4/2018, representing sale transactions for 529,000 shares of Sultan Center Company with a value of KWD 15,343 evidenced by the extract issued by the Kuwait Clearing Company for the trading account of the company's clients on the said transactions.
- The provisions of Article (1-15) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of the CMA Law:
As a result of the Company's marketing of units for four collective investment schemes incorporated outside the State of Kuwait for its clients within the State of Kuwait prior to the issuance of a license certificate from the Authority to market a collective investment schemes shown in the tables of clause (A, B, C, and D) of this document.
- The provisions of clause (5) of Article (4-3) of Module Fifteen (Corporate Governance) of the same executive bylaws: -
Due to the fact that the remuneration report to the members of the Board of Directors and the Executive Management submitted to the General Assembly held on 12/7/2018 did not provide details of the amounts awarded to them.
- Clause (7) of Article (5-6) of Module Fifteen (Corporate Governance) of the Executive Bylaws of the CMA Law:
Because the audit committee of the company met only once with the internal auditor during the year 2017 in violation of the provision of the article above that stipulated the requirement of holding a meeting to be at least four times during the financial year.
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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