CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (54/2017 Disciplinary Board) (131/2017 Authority)
The Capital Markets Authority announces issuance of a Disciplinary Board Resolution passed in its meeting held on Wednesday 20/09/2017 on violation No. (54/2017 Disciplinary Board) (131/2017 Authority) filed against:
Kuwait Real Estate Investment Consortium (KREIC) – in its capacity as manager of KREIC Real Estate First Fund.
The Company shall pay KWD 2000, which shall be paid at the end of each month starting from end of October 2017 in case of not correcting the violation by appointing an Executive Committee for KREIC Real Estate First Fund.
This punishment is due to violating the provisions of Articles (2-13) (2-14-1) and (2-14-2) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. It did not seriously undertake the standard of care of a prudent person in performing its obligations in appointing members of the Executive Committee for the Fund in spite of obtaining, on 11/06/2016, license for practicing the activities of Investment Portfolio Manager and Collective Investment Scheme Manager.
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.