Title: The Capital Markets Authority (CMA) Launches the Electronic Disclosure System XBRL as of today
Date Publish 10 February 2019
Kuwait City - February 10, 2019 As part of its ongoing efforts to improve the various transactions related to securities activities and enhance disclosure and transparency levels in the Kuwaiti financial market, the Capital Markets Authority (CMA) will be, as of Sunday, 10/2/2019, launching the XBRL language - "disclosure system - iFSAH.
It is worth mentioning that the entities concerned with the applications of this system are licensed persons, investment funds, listed companies, individuals and institutions "dealing" in the Kuwaiti financial market, auditors, and other regulators and Boursa Kuwait. Details of disclosure data and requirements specified in the system is in the
five gateways as follows:
• Financials Reporting Domain
• Anti-Money Laundering Reporting Domain
• General Assembly Reporting Domain
• Corporate Governance Reporting Domain
• Disclosures Reporting Domain
The Authority has set the date for launching the system by preparing a comprehensive plan to ensure the gradual transition of this new electronic system in a flexible and unobstructed manner, according to two main stages: the first is a reintegration stage followed by the mandatory implementation phase.
The reintegration stage is divided into several phases, starting with the launch of the disclosure portal for the “financial statements” and the disclosure portal for the "Anti-Money Laundering Requirements" as a first phase until the end of September this year (30/9/2019). The concerned parties are required to submit the disclosure requirements for these gateways for the financial year ended 31/12/2018. The other disclosure gateways will be launched upon completion of the linkage process with Boursa Kuwait and other regulatory bodies, this phase aims to familiarize the concerned bodies with the characteristics, advantages and mechanisms of dealing with it. At this stage and within a specified period of time, in addition to continuing to provide the same disclosures and reports according to the traditional methods applied before the implementation of this system, which represents an opportunity for them to have the elements of dealing with this system and can at the same time as a result of more practical tests to overcome any technical obstacles that may accompany the process of application.
As for the mandatory implementation phase, the traditional disclosure methods will be stopped prior to the implementation of the XBRL Disclosure System (iFSAH) for this system to remain the only mechanism available to all concerned parties to submit their disclosures and reports to the Authority, as of the date of implementation of this phase.
In order to ensure that those concerned with the implementation of this system have the required awareness and mechanisms of dealing with it and disclosure through it, the Authority has commenced the implementation of a comprehensive awareness plan of its own, including the provision of a special awareness and introductory section of this system, "iFSAH Disclosure System" (https://www.cma.gov.kw/en/web/ifsah ) to displays all the information related to this system and its explanatory evidence related to its characteristics and applications in the form of electronic documents or pre-recorded awareness videos. The awareness plan also includes the implementation of series of workshops on this system through the Inter network “Webinars ", which allows access to the largest part of those involved in the system to follow up and participate in these workshops, which relieves them from the trouble of the actual presence and saves much of their effort and time, and is expected to address these workshops to clarify the various aspects related to the characteristics of this system and its applications. It also includes responses to customer queries, as well as direct contact with the technical support team of the system either by phone or by e-mail designated for this purpose.
The project is considered one of the most important strategic projects of the Authority, which is being implemented in cooperation with the Ernst & Young Consulting Office and IRIS Services Company Ltd., which will greatly help them achieve their objectives and effectively exercise their oversight role as one of the main pillars of establishing the required structure for capital markets, by increasing its competitiveness and in general improving the domestic investment climate in Kuwait.
The application of this system is a crucial step in achieving a number of the core objectives, particularly those related to the promotion of the principles of transparency and disclosure in the financial markets. This modern automated system allows receiving of financial and non-financial information and data from listed companies, licensed persons, collective investment schemes after consolidating the forms of the elements of such disclosures and reports in accordance with the XBRL language, this ensures the accuracy of the data and information contained in those disclosures and facilitates their handling by all its clients on one hand, owners of interests and a wider part of those concerned, in addition to reducing the burden of the obligation on the authorities entrusted with the disclosure on the other hand.
In terms of the local investment environment, this system will enable the system to overcome the many obstacles related to the exchange of data and information between the different parties concerned and the clients in the Kuwaiti financial market (companies, individuals, audit offices and other regulators). This type of disclosure system has proved effective in facilitating the disclosure process which is expected to be reflected domestically in the procedures of the local business environment and to strengthen the control efforts in the financial sector in general, where the disclosure mechanism will be limited according to this system to disclose the disclosure by the concerned authority data and information only once and in an even manner for agreed concepts and disclosure elements for the system to verify and authenticate them from the parties concerned and then to maintain them in a central database and to provide them and share them with all other regulatory bodies that deal with the system in accordance with the powers and permits granted without the need to request such data and information from the supervised entities again.
This electronic disclosure system is based on Extensible Business Reporting Language (XBRL), a flexible digital standard language (Extensible) developed specifically to support disclosure and exchange of information between parties of the economic activity and various users of data and information (financial and non-financial). The standard for the language is the universal agreement on its concepts and terminology under the authority of XBRL International, an international non-profit organization that sets standards for the XBRL language, develops and produces classifications and specifications for that language, and improves disclosure in financial markets.
Finally, CMA announces the launch of its XBRL electronic disclosure system in an exceptional pioneering step locally. It hopes that success will be its ally on the basis of the extensive preparation stages prior to its launch as well as the comprehensive awareness plan to be implemented in conjunction with its launch. To the cooperation of all parties and the parties concerned through the disclosure, and at the same time welcomes all inquiries and questions related to this system through various means available and invites them to visit the site of the gateway to the system: https:\\ifsah.cma.gov.kw , as well as the corner dedicated to it in the Authority’s website (https://www.cma.gov.kw/en/web/ifsah ) which contains all the information related to this system and its explanatory evidence relating to its characteristics and applications in the form of electronic documents or pre-recorded awareness videos.
Clarification to Editors
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010, and amended by Law No. 108/2014. Pursuant to the Law, the Authority shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance Regulations, and protect investors from unfair practices which violate the Authority's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The Authority also aims to provide awareness programs related to securities activities.
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