CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (19/2017 Disciplinary Board) (37/2017 Authority)
The Capital Markets Authority announces issuance of a Disciplinary Board Resolution passed in its meeting held on Thursday 11/5/2017 on violation No. (19/2017 Disciplinary Board) (37/2017 Authority) filed against:
KFH Capital Investment Company
That is by warning the Company of the consequences of violating the Law, with regard to its first, third, fourth and sixth violations.
This punishment is due to violating clause (4) of Article (69) of Law No. (7) of 2010 on the Establishment of the Capital Markets Authority, which states that every licensed person must use an internal control system and abide by the following: 4 - Record transactions to allow preparation of financial statements in accordance with the standards adopted by the Authority or during the auditing of the company’s registered assets. And the third violation of Article (2-1) of Module Seven (Clients’ Funds and Clients’ Assets), which states that “A Licensed Person shall make all appropriate arrangements to hold and maintain Client’s Funds and Clients’ Assets and not use the same unless for their assigned purposes. The Licensed Person may not use these funds or assets or rights arising from the same for his own account, or for the account of any other Client or third party” which corresponds with the provisions of Article (217) of the canceled Executive Bylaws of Law No. (7) of 2010 which states that “The licensed person may not use the assets of one client for the benefits of another”. And the company’s fourth violation which is relevant to the provisions of Article (2-3) of Module Seven (Clients’ Funds and Clients’ Assets) which states that “A Licensed Person shall keep records and accounts to enable it to distinguish assets and funds held for one client from the assets and funds held for any other Client or for the Licensed Person”, which means that licensed person shall register and transfer them to the client’s account from the date of ownership without any delay. And the Company’s sixth violation as it is the manager of Muthanna Islamic Banks Fund, which is relevant to Article (2-26-7) of Module Thirteen (Collective Investment Schemes). It states that “The Fund Manager shall pay to the Unit holder the redemption value within four Business Days following the Valuation Day, in which the Unit price is determined”.
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.