Title: Announcement regarding issuance of Disciplinary Board Resolution No. (28/2025 Disciplinary Board) (57/2025 Authority) and imposition of a fine against: Gulf Bank, for Violating the Rules of Securities Activities and Registered Persons and Conduct of Business

Announcement regarding issuance of Disciplinary Board Resolution No. (28/2025 Disciplinary Board) (57/2025 Authority) and imposition of a fine against: Gulf Bank, for Violating the Rules of Securities Activities and Registered Persons and Conduct of Business

For the following reasons:
First: a) Violation of the provision of Article (1-30) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

b) Violation of the provision of Article (3-2-5) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the CMA that Gulf Bank repeatedly failed to submit subscription or participation/redemption applications for securities to its employees registered with the CMA as subscription agent representatives. The bank was submitting subscription/participation or redemption applications for securities to employees not registered with the CMA as subscription agent representatives, with regard to subscription/redemption applications for investment funds managed by Kuwait Financial Centre Company (Markaz), pursuant to the vendor agreement concluded between the bank and the fund manager.

Second: a) Violation of the provision of Article (6-9) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

b) Violation of the provisions of Items (1/a), (2/a) and (6/a) of (1/Telephone Conversations) of (Second: Means of receiving clients’ orders, and mechanism 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:

It was proven to the CMA that the bank did not properly keep recordings of several clients phone calls related to their orders.

It was also proven to the CMA that the system used to record telephone calls includes a feature that allows the deletion of recorded phone orders.

The Resolution included the infliction of the following penalty: -
" Levying a Fine on Gulf Bank in the amount of KWD 10,000 (ten thousand Dinars) for each of the two attributed violations.”

 
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.