Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (10/2019 Disciplinary Board) (2/2019 Authority)
Date Publish 03 April 2019
The Capital Markets Authority announces issuance of a Disciplinary Board Resolution passed in its meeting held on Wednesday 3/4/2019 on violation No. (10/2019 Disciplinary Board) (2/2019 Authority) filed against:
EFG- Hermes IFA Brokerage Company
“First: The Company shall be fined KWD 1,000 for each of the third, fourth and fifth violations.”
This punishment is due to the following:
1. Failure to provide the clients with a statement showing the fees and commissions specified by Boursa Kuwait, as this statement was not prepared at the time of the field inspection. This violates the provision of Clause (2) of Article (1-4) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
2. A number of transaction records that have been executed for the benefit of the Company's clients, which have been prepared and maintained by the Company, are not valid. The names of the brokers mentioned in these records differ from the names of the brokers registered for the same transactions mentioned in the records of Boursa Kuwait. This violates the provisions of Article (6-1) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
3. The Company did not update the contracts concluded between it and a number of its clients, in violation of the Board of Commissioners Resolution No. C.B.C 8-21 of 2017.
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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