CmaBoardReleases
Title: Press Release: Approval of the Heads of GCC Capital Markets Authorities Committee (or their equivalent) on the Regulatory Framework of Passporting Products among the Entities Regulating the Capital Markets in the GCC Countries
Kuwait, October 15, 2022 – As part of the objectives of the articles of association of the Gulf Cooperation Council (GCC) that aims to strengthen the ties among the GCC countries, and the importance of developing the cooperation between them in various fields, and in line with the economic agreement of the GCC that aims to enhance the economies of the GCC countries in light of the international economic developments and competitiveness, and within the framework of the pursuit of the entities regulating the capital markets in the GCC countries to establish practical steps to implement the resolutions of the Supreme Council in its 30th session (Kuwait, December 2009) which assigned the ministerial committees concerned with establishing the mechanisms that are necessary for activating Article (5) of the economic agreement, which provides for the integration of all capital markets in the GCC countries, and unifying relevant policies and procedures, for the purpose of developing the local investments, passporting, and external investments in the GCC countries, whilst providing a transparent and stable investment environment. Furthermore, in order to achieve the capital markets’ integrity to meet the common requirements of the gulf market that enable the GCC countries’ natural persons, corporate entities and residents to invest and trade in the GCC markets easily and without discrimination. This shall allow these markets to achieve more development, provide new products, and develop capital markets that have an important role in enhancing the economic growth of the GCC countries.
The GCC regulatory entities of capital markets agreed in their meeting held on 4/10/2022 on the mutual regulatory framework for passporting of financial products, for regulatory purposes regarding passporting of financial products registered in their areas of competence. The member states acknowledge the passporting bylaws as the regulations and conditions of registering financial products that will be promoted through the regulatory entities’ areas of competence. The provisions of this regulatory framework shall apply to the financial products that will be registered in accordance with the passporting bylaws, provided that the registered financial product shall have the minimum standards specified in such bylaws. The current gulf endeavors of specialized technical teams emanating from the GCC regulatory entities are represented by the preparation of the passporting bylaws for investment portfolios in a diligent manner as the first phase of application, provided that the regulatory framework shall be submitted for the approval of the ministerial committee supervising the capital markets authorities in the GCC countries.
Moreover, the initiative of the Capital Markets Authority in the State of Kuwait resulted in the agreement of the GCC regulatory entities in their meeting held on 4/10/2022 on the executive plan of activating the initiative of facilitating the requirements of opening the investment accounts and Know Your Client form (KYC), through a program whose period is determined and agreed upon by the GCC countries. The plan includes holding an awareness workshop to the entities concerned with its implementation to describe the initiative and the mechanism of its implementation in order to achieve its purpose.
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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
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Email: pr-media@cma.gov.kw