CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (24/2024 Disciplinary Board) - (09/2024 Authority), and imposition of a fine against Wafra International Investment Company for violating the rules of Collective Investment Schemes

Announcement regarding issuance of Disciplinary Board Resolution No. (24/2024 Disciplinary Board) - (09/2024 Authority), and imposition of a fine against Wafra International Investment Company for violating the rules of Collective Investment Schemes.

For the following reasons:
1) The provision of Article (2-26-5) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the CMA that the Company, in its capacity as a fund manager, failed to execute two redemption applications dated  07/09/2023 at the  valuation price (NAV) of the following date, which was 11/09/2023. The fund did not execute its clients’ redemption applications until the NAV of 18/09/2023, resulting in harm to the fund’s clients due to this action.

2) The provision of Item (3) of Article (2-13) of Module Thirteen (Collective Investment Schemes) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the CMA that the Company failed to compensate the two clients for the decrease in the value of their units that were subject to  redemption on 07/09/2023, causing them to miss out a profit of KWD 371 (three hundred and seventy-one Kuwaiti Dinars) due to the Company’s failure to execute  the redemption at the NAV of the following date, which was 11/09/2023.

The Resolution included the infliction of the following penalty: -
“Levying a fine against Wafra International Investment Company in an amount of KWD 1,000 (one thousand Dinars) for the two 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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