Title: Resolution No. (166) of 2022 Regarding Developing the Investment Advisor Activity and the One Person Company License to Practice Securities Activities and the Financial Analysts’ Register

Having Perused:
- Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Executive Bylaws, and their amendments; and
- CMA Board of Commissioners Resolution passed in its meeting No. (37) of 2022 held on 12/10/2022. 

The Following Was Resolved
Article (1)
Module One (Glossary), Module Five (Securities Activities and Registered Persons), and Module Eight (Conduct of Business) 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 are hereby amended pursuant to Annex (1) attached to this Resolution.

Article (2)
The following appendices shall be added to the Executive Bylaws’ Modules of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments pursuant to Annex (2) attached to this Resolution:
Firstly: The addition of the following appendices to Module Five (Securities Activities and Registered Persons):
• Appendix (22) Controls and Regulations Relevant to a One Person Company License to Practice Securities Activities.
• Appendix (23) Application for a Securities Activities License - One Person Company.
• Appendix (24) Application for Renewing a Securities Activities License - One Person Company.
• Appendix (25) Application for the Termination of a Securities Activities License - One Person Company.
• Appendix (26) Controls and Regulations for the Financial Analysts’ Register with the Capital Markets Authority.
Secondly: The addition of Appendix (1) Obligations Relevant to Practicing Securities Activities of the One Person Company is hereby added to Module Six (Policies & Procedures of Licensed Persons).

Article (3)
The Appendices of the Executive Bylaws Modules of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments are hereby amended pursuant to Annex (3) attached to this Resolution are as follows:
Firstly: Module Two (Capital Markets Authority):
• Appendix (4) Schedule of the CMA Services Fees is here by amended with the addition of a fee of Registration in the Financial Analysts’ Register at the Authority.
Secondly: Module Five (Securities Activities and Registered Persons):
• Appendix (1) Capital Requirements and Legal Forms of Licensed Persons is hereby amended by the addition of the One Person Company as a legal entity of the Investment Advisor’s activity with a required capital of 30,000 KWD.
• Appendix (3) Qualifications and Experience Required in Registered Positions and Employment Positions in Licensed Persons in accordance with Fit and Proper Rules  is hereby amended.
The amendments included in this Article shall be executed immediately after the issuance of this Resolution.

Article (4)
The Licensed Persons addressed in these amendments shall update its current contracts with their clients pursuant to the CMA requirements in this regard by including the provisions of the Investment Advisor Activity.
The Licensed Persons addressed in these amendments shall also update their operational policies and procedures and submit them to the CMA.

Article (5)
Without prejudice to the provisions of Article 3 of this Resolution, the concerned bodies shall execute this Resolution, each within its jurisdiction. This Resolution shall come into force as of 02/01/2023, and it shall be published in the Official Gazette.

Prof. Ahmad Almelhem
Issued on: 25/10/2022 

The Translated Document

Copy of the Official Document