Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (49/2017 Disciplinary Board) (117/2017 Authority)

The Capital Markets Authority announces issuance of a Disciplinary Board Resolution passed in its meeting held on Wednesday 23/08/2017 on violation No. (49/2017 Disciplinary Board) (117/2017 Authority) filed against:
 
Kuwait & Middle East Financial Investment Company 

That is by: “First: warning to the Company of the consequences of repeating the violations in the future. Second: canceling the transfer of ownership of the shares of Arabi Holding Group Co. which were from portfolio No. (1-284) subject of the third violation. 

This punishment is due to the following violations:

1- Violating the provision of clause (2) of Article (2-2) of Module Seven (Clients’ Funds and Clients’ Assets) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. The Company accepted deposits received from accounts not in the name of the client owning the investment portfolio.       

2- Violating the provision of clause (1) of Article (5-3-2) of the Executive Bylaws for not submitting periodical reports on all the sub investment portfolios established on 28/04/2016 within the specified legal period.

3- Violating the provision of clause (2) of Article (5-4-2) of Module Seven of the same Bylaws. The Company transferred the shares’ ownership of Arabi Holding Group Co. from portfolio No. (1-284) to portfolios No. (2-284/ 3-284/ 4-284/ 5-284/ 6-284/ 7-284) internally under different clients’ names without completing the procedures that proves such transfer through the Exchange’s system, and executing the resulting obligations on the specified dates through the Clearing Agency.        
   
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.