CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (16/2024 Disciplinary Board) (176/2023 Authority), and imposition of a fine against: Wafra International Investment Company for violating the rules of Clients’ Fund and Clients’ Assets and Conduct of Business

Announcement regarding issuance of Disciplinary Board Resolution No. (16/2024 Disciplinary Board) (176/2023 Authority), and imposition of a fine against: Wafra International Investment Company for violating the rules of Clients’ Fund and Clients’ Assets and Conduct of Business.

For the following reasons:

First:
1- The provision of Item (3) of Article (5-2-1) of Module Seven (Clients’ Fund and Clients’ Assets) of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
2- The provision of Article (5-6) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the CMA that the company failed to execute the client’s orders directly and immediately regarding the written instructions issued by the client concerning the sale order of two investment portfolios.

Second: The provision of Item (2) of (Second: Mean of receiving clients’ orders, and mechanisms of keeping them) of Appendix 1 (Standards of Record Keeping Systems) of Module Eight (Conduct of Business) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the CMA in a strict manner that the Company failed to unify the data that shall be included in the client’s order through electronic correspondence, such as the timeframe for liquidation and a determined price for sale and purchase, as a result of the client’s email sent to the Company on 17/10/2022 without specifying the timeframe for liquidation and  a determined price for the sale and purchase.

The Resolution included the infliction of the following penalty: -
“Levying a fine against Wafra International Investment Company in an amount of KWD 5000 (five thousand Dinars) for the first and second attributed violations due to correlation”.

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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