CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (5/2018 Disciplinary Board) (13/2018 Authority)
The Capital Markets Authority announces issuance of a Disciplinary Board Resolution passed in its meeting held on Thursday 15/3/2018 on violation No. (5/2018 Disciplinary Board) (13/2018 Authority) filed against:
First Investment Company
"The Company will be fined KWD 1,000 for each of the four violations assigned to it for not separating between its funds and clients' funds, conducting internal deals between its customers, and not signing an agreement with a client before starting service, and violating the rules of disclosure and transparency.”
This penalty is due to the following violations:
1. The provisions of Article (215) of the canceled Executive Bylaws, which corresponds to Article (2-3) of Module Seven (Clients’ Funds & Clients’ Assets) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, for the registration of 50,000 shares of First Education Company of the client holder of the portfolio, in its name during the period from 20/10/2013 to 29/06/2017.
2. The provisions of Article (11) of the Market Committee Decision No. (5) of 2005 regarding managing and supervising portfolios of others, which corresponds to item (2) of Article (5-4-2) of Module Seven (Clients’ Funds & Clients’ Assets) of Law No. 7 of 2010 and their amendments, for the purpose of conducting internal transactions between its two portfolio holders, by agreeing to waive its portfolio holder for 50,000 shares of First Education Company for the benefit of its other client with a portfolio as of 20/10/2013 .
3. The provision of Article (160) of the canceled Executive Bylaws, which corresponds to Article (1-4) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, as it did not conclude an agreement with the client, the holder of the portfolio before starting to provide services to him.
4. The provisions of Article (5-1-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. It did not include the internal sharia auditor and the external sharia auditor in the list of insiders.
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.