CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (63/2023) Disciplinary Board - (96/2023) Authority, and imposition of a fine against Securities Group Company For violating the rules of Capital Adequacy Regulations for Licensed Persons

Announcement regarding issuance of Disciplinary Board Resolution No. (63/2023) Disciplinary Board - (96/2023) Authority, and imposition of a fine against Securities Group Company For violating the rules of Capital Adequacy Regulations for Licensed Persons

For the following reasons:
Violation of the provision of Article (3-1) of Module Seventeen (Capital Adequacy Regulations for Licensed Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. This is due to the reduction of the Company’s eligible regulatory capital from the risk-based capital requirements in a coverage ratio of 94% as on 31/3/2023. It should be noted that the minimum eligible regulatory capital to the risk-based capital of the Company is 100%.

The Resolution included the infliction of the following penalty: -
“Levying a fine against Securities Group Company in an amount of KWD 10,000 (ten thousand Kuwaiti Dinars) for the attributed violation, in addition to the necessity of addressing the Company’s eligible regulatory capital to reach 100% or more than the risk-based capital requirements”.

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.

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