Title: Disciplinary Board Resolutions Issued Regarding Violations Filed Against Entities Subject to the Authority’s Supervision

Kuwait, June 16, 2021- As part of the Capital Markets Authority’s continuous endeavor to enhance the integrity and credibility of the financial market, the Authority performs its supervisory and regulatory role in accordance with the provisions of Law No. (7) of 2010 regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Executive Bylaws issued on 09/11/2015, and their amendments, and as stipulated in the provisions of Articles (2-1), (2-2), and (2-3) of Module Three (Enforcement of the Law), and through the On-site Supervision Department, the Authority conducts field inspections on entities subject to its supervision to ensure its compliance with the above-mentioned rules. In the event that the various inspection teams monitor any violations of the inspected entities, they are dealt with in accordance with the legal procedures adopted by the Authority, which in some cases may result in the issuance of a disciplinary board resolution against the entity subject of the observed violation, in order to urge the entities to abide by the rules referred to above, and to gain the confidence of their investors and clients.

Accordingly, the Capital Markets Authority, in this clarification, emphasizes the promotion of the transparency and fairness principles, and that the resolution of the Disciplinary Board passed in its meeting held on Wednesday, 09/06/2021, regarding the violation No. (28/2021 Disciplinary Board) (11/2021 Authority) Against (National Investments Company), it is a decision issued against the aforementioned company itself for committing procedural violations, not functional violations that were verified directly and the violation was corrected, and no violation was discovered or attributed to the company’s clients mentioned in the Disciplinary Board resolution.

In conclusion, the Authority emphasizes the implementation of its supervisory and regulatory role, to create a sound investment environment in the State of Kuwait, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice. 

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Notes to Editors:
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA 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 CMA's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw