CmaBoardReleases
Title: CMA Concludes the Events of its First Awareness Program for the Financial Year 2016/2017
Kuwait City, June 5, 2016 - CMA has concluded on Sunday June 5th the events of its first program for the financial year 2016/2017.
CMA started the awareness program on May after it assigned April to execute an awareness program regarding Corporate Governance which was from the 10/4/2016 to 21/4/2016, which included all companies concerned with applying corporate governance regulations.
It should be noted that this awareness program which was organized in accordance with the mechanism of organizing awareness programs adopted at the CMA. It took place at Khaled Al-Kharafi Hall at Kuwait Stock Exchange Building. It was limited to six workshops due to the upcoming holy month of Ramadan.
The first event of the program took place on Tuesday 3rd of May, with an awareness workshop regarding “Disclosure of Interest” which dealt with various aspects, starting with the regulation of disclosure of interests and the parties concerned with such disclosures like the interested persons, and the time and means of disclosure. After outlining and explaining the disclosure forms, the speakers came across the topic of group disclosure and pointed out the percentages that are excluded from disclosure. Then they reviewed cases which the interested persons may come across, and mentioned listed companies’ obligations towards such disclosures, before making the closing remarks and after presenting the approved forms and answering all the participants queries.
The second event was on 10th of May under the title “Promoting Collective Investment Schemes that are Incorporated Outside the State of Kuwait” it aimed at raising awareness for licensed persons on the procedures and requirements for promoting this kind of investment starting with the rules and regulations of promoting collective investment schemes incorporated outside Kuwait, in addition to the promotion regulations to such collective investment schemes and directing the IPO to a professional agent. Speakers demonstrated concerned persons’ commitment and obligations towards the CMA. At the end, they concluded the workshop by presenting the approved forms related to promoting units’ requests.
The events of the program proceeded with a third workshop on the 17th of May and it dealt with “Anti-Money Laundering and Combating Financing of Terrorism” by explaining Module Sixteen of the Executive Bylaws of Law No. (7) of 2010 on the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments, then they tackled the annual report of the licensed person and the important issues related to it, preparing studies related to risk evaluation, and explaining the way of reporting suspicious transactions.
The fourth workshop which was on the 24th of May discussed “Regulations of Registering Auditors in the Concerned Register with the Capital Markets Authority” the workshop started with explaining definitions related to the issue such as Auditor, Professional Employee, Client and others. Then, the speakers talked about the responsibilities of auditors who are registered in CMA register. Also, they tackled the process of registering auditors in CMA register and the procedures that shall be followed. They displayed some conditions and requirements of registration in the CMA register in addition to the main requirements that the auditors should fulfil before applying for registration in CMA register, and the restrictions that should be avoided after registering. Moreover, they discussed the rules of review and audit teams. The last part of the workshop talked about the period which follows the registration in CMA register, the annual report that must be submitted by the registered auditors to the CMA, and the regulations of renewing the registration.
The Fifth workshop took place on the 31st of May. It discussed “Violating Trading Conduct” and focused on conducts related to exploitation of inside information and trading, in addition to conducts and practices that causes manipulation or fraud in trading. Then the inside information was defined, and trading while it is in possession of such information. The workshop demonstrated cases where the person in possession of such information will not be considered as a person who committed a crime in this regard. As for the case of fraud and manipulation in the exchange, such a crime was defined and examples and kinds of manipulation were introduced, in addition to a clarification of the negative impacts of deceptive trading. The illegitimate practices in trading were discussed at the end of the workshop which concluded by explaining the penalties and sanctions on the various practices whether it was classified as trading crimes or it was considered among illegitimate practices.
The workshop was concluded with a very exceptional event. The last workshop was dedicated to the explanation of “CMA Electronic Portal” where the CMA presents its services to the entities subject to its supervision. It enables them to conduct their paper work and to attach the required papers and documents for each service without the need to be present in person. The workshop specified the goals of executing the electronic portal project which was to simplify procedures with the CMA and to enhance and raise the work efficiency in an electronic environment and to implement the vision of the CMA of business automation.
The speakers indicated that the CMA electronic portal was designed with the latest international technical standards and that it allows its users to submit to the CMA various forms through the internet and to follow up on the procedures of the forms.
The CMA will present its services in the portal through certain stages as the workshop clarified, it is expected to start with Corporate Governance Regulations follow up forms followed by licensing and registration forms and then disclosers, until all services are automated.
As for the mechanism of the subscription in the electronic portal service, it requires to submit an application to create an account and sign the agreement regarding the use of the electronic portal. All entities subject to CMA supervision are among the users of the electronic portal.
The workshop ended by confirming that June 15, 2016 is the set date for launching the services in the portal through the official website. (www.cma.gov.kw)
It should be noted that CMA representatives of this awareness workshop which was held today were: Mr. Wael Bahbahani – Director of IT Department, Mr. Khaled Alsaqer – Director of Awareness Office, and Ms. Ibtihal Alshammali – Governance Section Manager and Mr.Fahed Al-Rasheedi, Ms. Muneera al-Mutairi, and Mr. Omar AL-Jasem representing IT department.
Finally, the Capital Markets Authority is pleased to give its thanks and appreciation to all the participants in the events of the CMA in general and especially to what is related to the awareness program in particular for the conclusion of its first awareness program for the current financial year, especially since their participation represents a key factor in the success of its such event. It also welcomes any suggestion on this regard. It would like to greet them all on the upcoming holy month of Ramadan.
Clarification to Editors
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010, and amended by Law No. 108/2014. Pursuant to the Law, the Authority shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance Regulations, and protect investors from unfair practices which violate the Authority's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The Authority also aims to provide awareness programs related to securities activities.
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