CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (31/2022 Disciplinary Board) (221/2021 Authority) and imposition of a fine against KAB Kuwait Group for Financial Brokerage Company for violating the rules of Conduct of Business
Announcement regarding issuance of Disciplinary Board Resolution No. (31/2022 Disciplinary Board) (221/2021 Authority) and imposition of a fine against KAB Kuwait Group for Financial Brokerage Company for violating the rules of Conduct of Business
For violating the provisions of Article (2-3) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, where it was conclusively proven to the Authority that the Company did not notify its clients of their classifications until the end of the field inspection period, although the Company had informed the Authority in its letter dated 10/10/2021 after instructing it to adhere to classifying clients as professional or ordinary clients pursuant to the Authority’s Resolution No. (49) of 2021 “that it is committed to implementing the provisions of Module Eight and has a classification record for clients.”
The Resolution included the infliction of the following penalty: -
“KAB Kuwait Group for Financial Brokerage Company is fined an amount of five thousand Dinars for the attributed violation”.
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.