Title: Press Release: Regulating the Development of Controls for the Investment Advisor Activity and the One Person Company License to Practice Securities Activities and the Financial Analysts Register

Kuwait, October 25, 2022 – In continuation of the work and efforts of the Capital Markets Authority (CMA) towards providing a supervisory and regulatory system that supports an attractive and competitive investment environment in the State of Kuwait, based on the principles of fairness, transparency, and integrity, and in line with the best international practice suitable to the investment nature in the State of Kuwait, and as the CMA noticed interest from experienced individuals to offer their services as per the regulated license requirements in order to be satisfy society’s needs in a manner that does not contradict with CMA’s authority, the framework of its law, bylaws, and public interest, to ensure investor protection and develop the environment of investment and advisory studies and research in the State of Kuwait.
The CMA issued Resolution No. (166) of 2022 aimed at developing the provisions of Module One (Glossary), Module Two (Capital Markets Authority), Module Five (Securities Activities and Registered Persons), Module Six (Policies & Procedures of Licensed Persons), and Module Eight (Conduct of Business), which includes a significant development of the provisions of practicing the activity of Investment Advisor for all licensed persons. The amendments also included the addition of a new legal entity to the list of entities permitted to practice securities activities, represented by the one person company.
Furthermore, the CMA has established a register for registering financial analysts professionals that wish to address public investors regarding their analysis of the securities exchange in general and the trends of the financial market amid specific requirements. The regulation will shed light on the experienced persons that look forward to offering educational services to the community concerning the general trends of the securities exchange.  
Amendments were also included on the conditions for professional and academic qualifications and experience required in the positions of Senior Investment Advisor and Senior Asset Valuator.
The execution and application of these amendments to the Executive Bylaws will consist of two phases to ensure the readiness of the associated regulatory authorities and for the CMA’s automated systems to receive the licensing applicants and registration in the concerned registers according to the activity under development. These two phases will permit the persons licensed to practice the activity of an investment advisor to begin updating their internal policy and procedure manual in line with the updated provisions of the Bylaws and submit them in the appropriate time. The mentioned two phases will be as follows:
First phase: issuance of Resolution No. (166) of 2022 Regarding Developing the Investment Advisor Activity and the One Person Company License.
Second phase: execution of the updated amendments included in the Resolution issued by the Capital Markets Authority, opening the door to apply for the investment advisor’s license or register in the financial analysts register at the CMA.
In conclusion, the CMA continuously works on improving and developing the provisions of the Executive Bylaws guided by the best rules, standards, and practice to develop the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments. The CMA invites all the licensed persons and related parties to view the latest version of the amendments and act according to its provisions through visiting Capital Markets Authority’s official website.

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Notes to Editors:
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance regulations, and protect investors from unfair practices which violate the CMA's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw