Title: Announcement regarding issuance of Disciplinary Board Resolution No. (102/2022 Disciplinary Board) (91/2022 Authority) and imposition of a fine against each of: 1- Al-Sharq Financial Brokerage Company, 2- Hisham Salem Al-Roumi – Chairman of the Board of Directors and CEO, 3- Ali Sulaiman Al-Jabr – Vice Chairman of the Board of Directors, 4- Bader Naser Al-Ghanim – Board Member, 5- Bashar AbdulAziz Al-Fulaij – Board Member, 6- Khalid Sulaiman Al-Sana – Board Member, 7- Fuad Fadhel Al-Shukri – Vice CEO and Acting Director of the Trading Department for violating the rules of Conduct of Business and Corporate Governance.

Announcement regarding issuance of Disciplinary Board Resolution No. (102/2022 Disciplinary Board) (91/2022 Authority) and imposition of a fine against each of: 

1- Al-Sharq Financial Brokerage Company.
2- Hisham Salem Al-Roumi – Chairman of the Board of Directors and CEO.
3- Ali Sulaiman Al-Jabr – Vice Chairman of the Board of Directors.
4- Bader Naser Al-Ghanim – Board Member.
5- Bashar AbdulAziz Al-Fulaij – Board Member.
6- Khalid Sulaiman Al-Sana – Board Member.
7- Fuad Fadhel Al-Shukri – Vice CEO and Acting Director of the Trading Department.

For violating the rules of Conduct of Business and Corporate Governance.

For the following reasons:

They violated the following provisions: Items (1) and (2) of Article (6-8) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments and the provision of Item (1/a) of (1/Telephone Conversations) of (Second: Means of receiving clients’ orders, and mechanisms of keeping them) of Appendix 1 (Standards of Record Keeping Systems) of Module Eight (Conduct of Business) of the Executive Bylaws, as it was proven to the CMA that the Company received some of the clients’ orders through the broker’s telephones, noting that such devices were not allocated for this purpose and did not maintain a recording system; Item (1) of (2/Electronic Correspondence) of (Second: Means of receiving clients’ orders, and mechanisms of keeping them) of Appendix 1 (Standards of Record Keeping Systems) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, as it was proven to the CMA that the Company used a system for electronic correspondence (WhatsApp application) without having it registered in the documentary cycle of practicing the activity of securities broker or the record keeping policy of the clients’ orders prepared by him, and it did not maintain such correspondence; Item (4) of Article (3-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, as it was proven to the CMA that the Chairman of the Board of Directors did not ensure the Company’s commitment with the policy of practicing the activity of securities broker registered with an Exchange, that is called the documentary cycle, due to the failure of the competent employees to receive the clients’ orders through telephone as stipulated in Item “Receiving telephone orders” of the mentioned policy; Item (1) of Article (3-10) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, as it was proven to the CMA that the CEO did not comply with the policy of practicing the activity of securities broker registered with an Exchange, that is called the documentary cycle, due to the failure of the competent employees to receive the clients’ orders through telephone as stipulated in Item “Receiving telephone orders” of the mentioned policy; Item (4) of Article (3-7) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, as it was proven to the CMA that the Board of Directors did not ensure the Company’s commitment with the policy of practicing the activity of securities broker registered with an Exchange, that is called the documentary cycle, due to the failure of the competent employees to receive the clients’ orders through telephone as stipulated in Item “Receiving telephone orders” of the mentioned policy; Item (1) of Article (3-10) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, as it was proven through the on-site inspection report at the CMA that the on-site inspection team has monitored a number of serious observations on Al-Sharq Financial Brokerage Company during the period from 08/05/2022 to 26/05/2022 regarding its non-compliance with the provisions of the Executive Bylaws of Law No. 7 of 2010.

The Resolution included the infliction of the following penalty: -

"First: - Levying a fine against Al-Sharq Financial Brokerage Company in an amount of KWD 2000 (two thousand Dinars) for of the first violation, and an amount of KWD 2000 (two thousand Dinars) for both the second and third violations together.

Second: - Levying a warning fine to discontinue committing the attributed violation on each of the following:
1- Hisham Salem Al-Roumi – Chairman of the Board of Directors and CEO of Al-Sharq Financial Brokerage Company.
2- Ali Sulaiman Al-Jabr – Vice Chairman of the Board of Directors of Al-Sharq Financial Brokerage Company.
3- Bader Naser Al-Ghanim – Board Member of Al-Sharq Financial Brokerage Company.
4- Bashar AbdulAziz Al-Fulaij – Board Member of Al-Sharq Financial Brokerage Company.
5- Khalid Sulaiman Al-Sana – Board Member of Al-Sharq Financial Brokerage Company.
6- Fuad Fadhel Al-Shukri – Vice CEO and Acting Director of the Trading Department at Al-Sharq Financial Brokerage Company.”

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.