CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (66/2023) Disciplinary Board - (56/2023) Authority, and imposition of a fine against Gatehouse Capital for Economic and Financial Consultancy Company For violating the rules of Collective Investment Schemes

Announcement regarding issuance of Disciplinary Board Resolution No. (66/2023) Disciplinary Board - (56/2023) Authority, and imposition of a fine against Gatehouse Capital for Economic and Financial Consultancy Company For violating the rules of Collective Investment Schemes.

For the following reasons:
1) Violation of the provision of Article (77) of Law No. 7 of 2010 and its amendments.
2) Violation of the provision of Item (3) of Article (5-4-1) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

This is due to the following:
a) On 10/8/2021, the Company has signed subscription contracts for a fund’s units with some of its clients (77 clients from a total of 86 clients) before obtaining the necessary license from the CMA regarding the approval to communicate with the professional clients to discuss their intentions to invest in the scheme that will be marketed in the State of Kuwait, as CMA’s approval was issued on 12/10/2021.

b) The Company has signed subscription contracts for a fund’s units with some of its clients before the issuance of Resolution No. (13) of 2021 on 11/2/2021 regarding granting a private marketing license of a collective investment scheme incorporated outside the State of Kuwait as well as CMA’s license issued on 21/2/2021 on this regard.

The Resolution included the infliction of the following penalty: -
“Levying a fine against Gatehouse Capital for Economic and Financial Consultancy Company in an amount of KWD 5,000 (five thousand Dinars) for the first violation and an amount of KWD 2,000 (two thousand Dinars) for the second attributed violation”.

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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