Title: Press Release: Invitation to Participate in the Opinion Poll of Developing the Provisions of the Investment Advisor Activity and Licensing the One-Person Company to Practice Securities Activities

Kuwait, November 24,2021 - In continuation of the efforts of the Capital Markets Authority (CMA) towards providing a supervisory and regulatory system that supports an attractive investment environment and competitiveness in the State of Kuwait, based on the principle of justice, transparency, and integrity in line with the best international practice, and stimulating the practical application that requires the necessary updates, the CMA has prepared suggested developmental amendments on the provisions of Module Five (Securities Activities and Registered Persons), Module Six (Policies & Procedures of Licensed Persons) and Module Eight (Conduct of Business). Such amendments include a fundamental development of the provisions of practicing the Investment Advisor activity for all licensed persons, and an addition of a new legal entity to the list of entities permitted to practice securities activities represented by the one-person company.

The new regulation highlights the importance of the principle of disclosure and transparency between the licensed person and its clients during the period of providing the advisory services and clear provisions stimulating the mechanism of dealing with any conflict of interests or entering advisory processes in which the licensed person is an insider.

Moreover, the regulation determined the general framework of the requirements of granting a license to the one-person company and renewing and cancelling it while taking into consideration the type of activity and the new legal entity.

In conclusion, the CMA is constantly working on improving the provisions of the Executive Bylaws guided by the best rules, standards, and practices that aim to provide a regulation to the securities activities based on justice, competitiveness, and transparency by developing the Executive Bylaws of Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments pursuant to the results of the studies and research related to the international practice, as well as raising public interactive opinion polls according to the topic of the survey. The CMA also emphasizes on the importance of participating in the opinion poll of the mentioned amendments and invites the persons of visions and interests, in particular those wishing to obtain the license of Investment Advisor to submit their opinions and necessary information through filling out the survey in the opinion poll’s page, which aims to build a basis for the database of the natural persons, their qualifications and experiences in general, which will be directly reflected on the requirements of the registered employment positions related to the  Investment Advisor activity, which will affect the regulatory orientation towards the governance of such positions and jobs and CMA’s mechanisms in dealing with them. The CMA welcomes all suggestions that may upgrade the securities activities through participating in the opinion poll no later than Wednesday 15/12/2021.

To participate in the opinion poll:

The website of the opinion poll:

https://www.cma.gov.kw/ar/web/cma/questionnaire_for_investment_advisor

Scan here to enter the website:

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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