CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (20/2023) Disciplinary Board - (141/2022) Authority and imposition of a fine against each of: 1- The Securities House Company – 2- Abdullateif Mohamed Al-Shaya – in his capacity as the Chairman of the Audit Committee at the Securities House Company, 3- Mosaed Adnan Al-Ajeel – in his capacity as the Vice Chairman of the Audit Committee at the Securities House Company- 4- Aysha Faisal AlMudhaf - in her capacity as a Member of the Audit Committee at the Securities House Company, 5- Talal Yousef Al-Muzaini (Deloitte & Touche -Al-Wazzan & Co.) in his capacity as the auditor of the Securities House Company for violating the provisions of Module Sixteen and Corporate Governance

Announcement regarding issuance of Disciplinary Board Resolution No. (20/2023) Disciplinary Board - (141/2022) Authority and imposition of a fine against each of:

1. The Securities House Company.
2.  Abdullateif Mohamed Al-Shaya – in his capacity as the Chairman of the Audit Committee at the Securities House Company.
3. Mosaed Adnan Al-Ajeel – in his capacity as the Vice Chairman of the Audit Committee at the Securities House Company.
4. Aysha Faisal AlMudhaf- in her capacity as a Member of the Audit Committee at the Securities House Company.
5. Talal Yousef Al-Muzaini (Deloitte & Touche -Al-Wazzan & Co.) in his capacity as the auditor of The Securities House Company.

for violating the provisions of Module Sixteen and Corporate Governance

For the following reasons:

First: The Securities House Company, for violating the following:

1. Provision of Items (3), and (8) of Article (2-3) of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
2. Provision Article (2-4) of the aforementioned Module.
3. Provision Article (2-5) of the aforementioned Module.
4. Provision of Article (3-5) of the aforementioned Module.
5. Provision of Items (2) of Article (3-19) of the aforementioned Module.
6. Provision of Article (3-20) of the aforementioned Module.
7. Provision of Article (4-1) of the aforementioned Module.
8. Provision of Article (6-1) of the aforementioned Module, which links to Ministerial Resolution No. (35) of 2019.
9. Provision of Article (7-6) of the aforementioned Module.

Second: Each of:

1. Mr. Abdullateif Mohamed Al-Shaya in his capacity as the Chairman of the Audit Committee at the Securities House Company.
2. Mr. Mosaed Adnan Al-Ajeel in his capacity as the Vice Chairman of the Audit Committee at the Securities House Company.
3. Ms. Aysha Faisal AlMudhaf in her capacity as a Member of the Audit Committee at the Securities House Company.

For violating the provision of Item (11) of Article (5-7) of Module Fifteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven beyond any doubt that the aforementioned violated the provision of the aforementioned Article based on the violations monitored during the above-mentioned inspection of the Company due to their breach of the responsibility entrusted to them of reviewing the results of the supervision reports and making sure that the necessary measures have been taken in this regard. These violations constitute a repetition of previous violations committed by the Company, and the Authority has previously taken action in this regard, as indicated above.

Third: Mr. Talal Yousef Al-Muzaini (Deloitte & Touche -Al-Wazzan & Co.) in his capacity as the auditor of the Securities House Company:

For violating the provision of Article (7-7) of Module Sixteen.

Note that these violations are procedural and not objective (for Module Sixteen)

The Resolution included the infliction of the following penalty: -

First:- Levying a fine against the Securities House Company in an amount of KWD 10,000 (ten thousand Dinars) for the attributed violations for correlation.

Second:- Levying a fine against each of:

1. Abdullateif Mohamed Al-Shaya – in his capacity as the Chairman of the Audit Committee at the Securities House Company.
2. Mosaed Adnan Al-Ajeel – in his capacity as the Vice Chairman of the Audit Committee at the Securities House Company.
3. Aysha Faisal AlMudhaf- in her capacity as a Member of the Audit Committee at the Securities House Company.

In an amount of KWD 1,000 (one thousand Dinars) for each of them for the attributed violation.

Third:- Levying a fine against Talal Yousef Al-Muzaini (Deloitte & Touche -Al-Wazzan & Co.) in his capacity as the auditor of the Securities House Company, in an amount of KWD 3,000 (three thousand Kuwaiti 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.

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