CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (126/2022 Disciplinary Board) (116/2022 Authority) and imposition of a fine and a warning against each of: 1- KFIC Brokerage Company, 2- Yousef Yaqoub Al-Sabej -Broker at the Company-, 3- Gholamreza Musa Gholami Burr -Delegate Correspondent at the Company- for violating the Rules of Conduct of Business

Announcement regarding issuance of Disciplinary Board Resolution No. (126/2022 Disciplinary Board) (116/2022 Authority) and imposition of a fine and a warning against each of:

1- KFIC Brokerage Company.
2- Yousef Yaqoub Al-Sabej -Broker at the Company-.
3- Gholamreza Musa Gholami Burr -Delegate Correspondent at the Company-.
For violating the Rules of Conduct of Business.

For the following reasons:

First: KFIC Brokerage Company violated the following provisions:

1) Items (c), (d), (e) and (h) of Article (5-11) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the CMA that the notifications sent by the Company to the clients did not include some of the Items stipulated in the Article above.

2) Item (1) of Article (6-5) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the CMA that Mr. Yousef Yaqoub Al-Sabej, who is one of the Company’s employees registered in the position of Representative of Securities Broker Registered with an Exchange, has received orders that were not recorded in the telephone conversations’ recording system and were conducted through his own mobile.

3) Items (1) and (3) of Article (6-8) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The following was proven to the CMA:
a) Mr. Yousef Yaqoub Al-Sabej, who is one of the Company’s employees registered in the position of Representative of Securities Broker Registered with an Exchange, did not introduce himself at the time of receiving the telephone call of one of the clients.
b) One of the Company’s clients did not define the name of security at the time of the request to purchase through a telephone call with Mr. Yousef Yaqoub Al-Sabej.

Second: Mr. Yousef Yaqoub Al-Sabej in his capacity as a broker at KFIC Brokerage Company violated the following provisions:

1) Item (1) of Article (6-5) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
In his capacity as a broker representative at KFIC Brokerage Company, he has received orders that were not recorded in the telephone conversations’ recording system and were conducted through your own mobile.

2) Items (1) and (3) of Article (6-8) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, as the following was proven to the CMA:
a) He did not introduce himself at the time of receiving the telephone call of one of the clients.
b) One of the Company’s clients did not define the name of security at the time of the request to purchase through a telephone call with him.

Third: Gholamreza Musa Gholami Burr.

He violated the provision of Article (4-5) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. During the period of serving as (Delegate Correspondent) at KFIC Brokerage Company, and through the trading account, he has conducted transactions of purchase and sale of securities with another brokerage company during the period from 3/9/2019 to 25/5/2022, even though the same service (Securities Broker Registered with an Exchange) is offered by KFIC Brokerage Company.

The Resolution included the infliction of the following penalty: -

"First: - Levying a fine against KFIC Brokerage Company in an amount of KWD 2000 (two thousand Dinars) for the first violation and issuing a warning to stop committing the second and third attributed violations.

Second: - Levying a fine against Yousef Yaqoub Al-Sabej in an amount of KWD1000 (one thousand Dinars) for each of the two attributed violations.

Third: - Levying a fine against Gholamreza Musa Gholami Burr in an amount of KWD 2000 (two 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 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.

Disclaimer: The information provided on this page is for reference purposes only, visitors are encouraged to review and understand the information provided in the official scanned document attached in the link above (if available). The CMA endeavors to ensure that the information on this page is complete and accurate, but the CMA does not guarantee the quality, accuracy, or completeness of any content at any time. In the event the information on this page is different from the content in the official scanned document attached in the link (if available), the official scanned document attached shall take precedence.