CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution
Announcement Regarding Issuance of Disciplinary Board Resolution
The Capital Markets Authority announces issuance of a Disciplinary Board Resolution passed in its meeting held on Thursday 5/11/2015 on violation No. (40/2015 Disciplinary Board) (81/2015 Authority) filed against: Global Investment House Company in its capacity as Manager of Global KWD Money Market Fund.
That is by "warning the Company of the consequences of not correcting its violations of Articles (3, 4, 5) of Resolution No. 9 of 2012 regarding Regulations for Investment in Monetary Market (MM) Funds".
This punishment is due to, the company's violation of Article (14) of the Fund's Articles of Association and paragraphs (2, 3, 4, 5) of Resolution No. 9 of 2012 regarding Regulations for Investment in Monetary Market (MM) Funds. It permitted one of the unitholders to own more than 50% of the total number of units in the percentage of 88, 41%. It also permitted the Fund to own bonds which have no credit rating from rating agencies. Additionally, the Fund invested in financial bonds that mature within a period which exceeds 397 days, and invested in other monetary funds in a percentage which exceeds 15%. Its investments in Global Fund of Bonds reached 24%. It also owned more than 10% in bonds issued from one source. It owned 33% in bonds issued by Global Investment House Company, which is the Manager of the Fund.
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 rules 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.