CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (121/2022 Disciplinary Board) (78/2022 Authority) and imposition of a fine against Gatehouse Capital Company for violating the rules of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments
Announcement regarding issuance of Disciplinary Board Resolution No. (121/2022 Disciplinary Board) (78/2022 Authority) and imposition of a fine against Gatehouse Capital Company.
For violating the rules of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
For the following reasons:
The Company violated the following provisions: Article (2-4) of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments, as it failed to ensure that its overseas branches and subsidiaries comply with the laws, regulations, and resolutions issued in Kuwait thereon; the Company also violated Article (3-5) of the same Module, as it was proven to the CMA through a selected sample of clients that the Company did not take the necessary steps for ensuring that the information of the client and his financial position are complete and correct; and violated Article (4-1) of the same Module, as it was proven to the CMA through a selected sample of clients that the Company did not take one of the Client Due Diligence (CDD) procedures to update the clients’ data; Article (6-1) of the same Module due to the company’s failure to prepare adequate policies and procedures for ensuring the implementation of all the commitments included in the mentioned Article.
Provided that these violations are procedural and not substantive.
The Resolution included the infliction of the following penalty: -
"Levying a fine against Gatehouse Capital Company in an amount of KWD 1000 (one thousand Dinars) for each of the first three violations, and an amount of KWD 3000 (three thousand Dinars) for the fourth 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 Laws 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.