CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (27/2021 Disciplinary Board - 135/2020 Authority)
The Capital Markets Authority announces the issuance of Disciplinary Board Resolution passed in its meeting held on Tuesday June 1, 2021 on violation No. (27/2021 Disciplinary Board - 135/2020 Authority) filed against: Boubyan Capital Investment Company.
The operative part of the Resolution resulted in the aforementioned being convicted of violating the following:
1) Boubyan Capital Investment Company's violation of the following:
The provision of Items (6) and (8) of Article (5-1-1) of Module Seven (Clients' Funds and Clients' Assets) of the Executive Bylaws of Law No. 7 of 2010 regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their Amendments. The Company did not update the clients data, as most of the Know Your Client forms were dated after the date of the end of the inspection (October 28, 2020), except for the client with the trading account number -----, for whom the inspection team was provided with a Know Your Client form on May 09, 2016.
a. The provision of Items (1) and (3) of Article (3-6) of Module Sixteen (Anti-Money Laundering and Combating Financing of Terrorism) of the Executive Bylaws of Law No. 7 of 2010 regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their Amendments, and the provision of Items (1) and (4) of Article (3-8) of Module Sixteen (Anti-Money Laundering and Combating Financing of Terrorism) of the Executive Bylaws of the aforementioned Law and their Amendments:
As it was proven to the Authority that the Company did not take any measures to update the data of the authorized signatories, portfolio No. (------) of the Public Authority for Minors Affairs, noting that Mr. Barak Ali Al-Shitan - the former Director General of the Public Authority for Minors Affairs has resigned from the aforementioned Authority to take over another official position (Minister of Finance).
2) Boubyan Capital Investment Company, in its capacity as the manager of Boubyan Kuwait Real Estate Fund, violated the following:
a. Provision of Article (2-27) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of the aforementioned Law and their Amendments:
b. Provision of Article (2-9-1) of Module Four (Securities Exchanges and Clearing Agencies) of the Executive Bylaws of the aforementioned Law and their Amendments:
As it was proven to the Authority that the unit record that was provided to the inspection team did not contain the address of the clients who were mentioned in the violation, but only included the area or the number of the mailbox, which is not sufficient. The Company must mention the addresses of the mentioned clients similar to the rest of the Fund's clients.
It was also proven to the Authority that the Company did not register the address of a number of unit holders of Boubyan Kuwait Real Estate Fund in the unit register, which led to the failure to achieve the interests of the aforementioned clients and to take care of their investments optimally.
The decision included the infliction of the following penalty: -
“First: The violating Company is fined an amount of two thousand Dinars for the attributed violations.”
Second: The violating Company is fined, in its capacity as the manager of Boubyan Kuwait Real Estate Fund, an amount of two thousand Dinars for the 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.